Why this ASX small cap stock just rocketed 145%

Why are investors getting excited about this stock? Let's find out.

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Pacific Edge Ltd (ASX: PEB) shares are catching the eye of investors on Friday.

In morning trade, the ASX small cap stock was up as much as 145% to 13.5 cents.

The cancer diagnostics company's shares have pulled back since then but remain up 100% at the time of writing.

Why is the ASX small cap stock rocketing?

Investors have been the buying the company's shares after the American Urological Association (AUA) included its Cxbladder Triage product as the standard of care for the management of patients presenting with microhematuria.

The release notes that the Panel has incorporated language for the use of urine-based biomarkers for intermediate-risk patients. It specifically mentions Cxbladder Triage as the only urine-based biomarker test that has Grade A evidence from a randomised controlled trial in support of this recommendation.

As a consequence of the new guideline, the ASX small cap stock anticipates an uplift in demand for Cxbladder tests as more clinicians in the United States and around the world begin to observe this updated guideline and incorporate the tests into care pathways for the evaluation and management of patients presenting with microhematuria.

Pacific Edge also expects to leverage the guideline language in its ongoing policy dialogue with Medicare Administrative Contractor (MAC) Novitas and the Centers for Medicare and Medicaid services.

It points out that under current legislation, MACs are required to consider consensus statements and guidelines in determining coverage. Pacific Edge will inform Novitas of the new guideline and expects to use the AUA guideline and the evidence on which it is based for a formal reconsideration of a local coverage determination (LCD).

'A significant milestone'

The ASX small cap stock's chief medical officer, Dr Tamer Aboushwareb, appeared to be delighted with the news. Dr Aboushwareb said:

The inclusion of Cxbladder Triage in the AUA guideline for the management of microhematuria is a significant milestone for Pacific Edge. While the guideline does not mandate the use of Cxbladder Triage, they are authoritative, reinforcing best practice within the urological industry and supporting greater adoption of Cxbladder in hematuria evaluation.

Cxbladder is the only test supported by a Grade A evidence from the AUA Guideline panel and the update reflects the strength of the evidence supporting Triage and will help to reduce the burden of unnecessary cystoscopies in patients of lower risk, resulting in less patient discomfort and less morbidity, and improved access to care by reducing wait times.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

A woman jumps for joy with a rocket drawn on the wall behind her.
Small Cap Shares

Guess which small cap ASX stock is rocketing 28% on $100m deal

It has been a very good start to the day for owners of this stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Small Cap Shares

Bell Potter says this small cap ASX stock can rocket 40%+

Let's see what Bell Potter is saying about this small cap.

Read more »

A person sitting at a desk smiling and looking at a computer.
Share Market News

2 ASX small caps with serious market-beating potential

Here's two compelling ideas to add to your watchlist.

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
Small Cap Shares

Building a market beating portfolio: ASX 200 stocks vs small caps

From blue-chip shares to small-caps what’s best for your portfolio?

Read more »

Two kids in superhero capes.
Small Cap Shares

2 small ASX shares to buy that have big potential

A fund manager is optimistic about these stocks.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Small Cap Shares

3 of the best small cap ASX stocks to buy now

Bell Potter thinks these shares are among the best to buy at the small end of town.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Small Cap Shares

Is this the best small cap stock on the ASX right now?

Bell Potter is very bullish on this small cap. Let's find out why.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Small Cap Shares

3 top small cap ASX shares that brokers are tipping for big things

Let's see which small caps are being tipped as buys by brokers.

Read more »