New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Novitas has issued its finalised Local Coverage Determination (LCD) which means Pacific Edge (PEB’s) Cxbladder tests at this stage will not be covered by CMS on the basis they are not “considered medically reasonable and necessary”.</li><li>Materiality is very high — we estimate CMS represented ~67% of revenue ex interest income/currency gains in FY23.</li><li>Going forward, our previously published estimates forecast CMS will represent ~70% of group revenue in FY24, ~60% in FY25, and ~50% thereafter.</li></ul>

Novitas has issued its finalised Local Coverage Determination (LCD) which means Pacific Edge (PEB’s) Cxbladder tests at this stage will not be covered by CMS on the basis they are not “considered medically reasonable and necessary”.Materiality is very high — we estimate CMS represented ~67% of revenue ex interest income/currency gains in FY23.Going forward, our previously published estimates forecast CMS will represent ~70% of group revenue in FY24, ~60% in FY25, and ~50% thereafter.

Pacific Edge: Final LCD Decision — Not Good News