Listed biomedical company Pacific Edge has secured an exclusive licence agreement with a Spanish company to market its bladder cancer test - creating its second income stream after almost a decade in development.

Health Minister Tony Ryall yesterday opened a specialist $500,000 diagnostic laboratory - capable of processing up to 35,000 tests a year - at Pacific Edge's base in the University of Otago's Centre for Innovation.

Pacific Edge announced in March that it had secured a contract for its diagnostic CX-bladder test with Australia's second-largest private hospital provider, Healthscope.

This has now been followed by the licence agreement with Spain's Oryzon, a specialist diagnostics company, including development of biomarkers for oncology and neurodegenerative diseases.

"With the opening of New Zealand's first purpose-built laboratory for the detection of bladder cancer, using the CX-bladder product, Pacific Edge Diagnostics is now engaged in the commercial release of the CX-bladder product to clinicians in Australia, New Zealand, Spain and Portugal," chief executive David Darling said yesterday.

While Pacific Edge booked a $1.39 million loss for its half-year to September, it also raised $4.7 million, which he said gave the company "adequate funding" to roll out commercialisation of its CX-bladder diagnostic, targeting the United States and Singapore.

Darling said that in 2012 Pacific Edge's other product, CX-colorectal, would be converted to a commercial platform and marketed.

Shares in Pacific Edge closed up 1c at 30c.

- Otago Daily Times