Epigenomics AG Reports Financial Results for Fiscal Year 2005
Friday, 24.03.2006, Berlin, Germany and Seattle, WA, USA, Epigenomics AG (Frankfurt, Prime Standard: ECX), a molecular diagnostics company developing tests based on DNA methylation, today reported its financial results for the fiscal year ending December 31, 2005.
- Revenue growth of 21% to EUR 9.6 million (EUR 7.9 million in 2004)
- EBIT improved to EUR -10.2 million from EUR -10.4 million slightly better than guidance
- Liquidity of EUR 32.7 million, above top end of our guidance
- Proof-of-concept for DNA methylation blood-based diagnostic testing
- Focussed on own product development
- Several significant clinical studies in colon, prostate and breast cancer indications
- Continued successful partnership with Roche Diagnostics on product development of blood-based screening tests
- Extension of the Roche Diagnostics R&D collaboration for a minimum of 6 months and an option to further extend and expand for another 18 months until September 2007
- Signed new partnerships with QIAGEN and Philip Morris
- Strengthened Supervisory Board with independent members including Prof. Dr. Dr. Uwe Bicker, Dr. Ann Kessler and Prof. Dr. Günther Reiter
- Executive Board and SBU management restructuring
- Appointment of Dr. Michael Wandell as Group Vice President Clinical, Regulatory and Quality Affairs
Epigenomics has systematically progressed its own product development programs in oncology and gained all proprietary rights back from Roche to both tissue-based classification tests. Several programs which are being run in collaboration with Roche successfully reached later stages of clinical and analytical marker validation. We have continued to meet critical milestones in both business units, Diagnostics and Clinical Solutions (formerly Pharma Technology). We delivered successful study results to our commercial partners including Pfizer and Biogen Idec. In our pharmacodiagnostic business area, Epigenomics signed up two new customers, Philip Morris and Qiagen. With continued improvement of our DNA methylation technologies we strengthened our IP portfolio with 21 granted patents bringing the total number (in at least one country) to over 50.
In 2005, we made significant changes to the Executive Board and senior management. Following the departure of two Executive Board members we realigned the structure and responsibilities to a core team of four. In recognition of the Company’s progress towards commercialization, Dr. Michael Wandell was appointed Group Vice President Clinical, Regulatory and Quality Affairs. New SBU management and Executive Board responsibilities were defined with Christina Dahlstroem to head the SBU Clinical Solutions and Christian Piepenbrock to become COO and head of SBU Diagnostics
Financial Review 2005
Full year 2005 revenues were in line with guidance given during our March 2005 annual press conference and analyst meeting with EUR 9.6 million, an increase of 21% compared to FY 2004 of EUR 7.9 million. This was mainly due to successfully meeting the Roche program milestone in colon cancer screening and the strong performance of our SBU Clinical Solutions. The 2005 revenue base has been further broadened to include the new partners Qiagen and Philip Morris.
In 2005, Epigenomics continued its strong commitment to building and maintaining a leadership position in DNA methylation-based products, science and technology. Consequently, we had a total of EUR 8.1 million in research and development (R&D) expenditures versus EUR 7.3 million for fiscal 2004.
Marketing and business development costs remained fairly constant at EUR 1.5 million as did general and administrative expenses at EUR 3.8 million.
Earnings before interest and taxes (EBIT) totalled EUR -10.2 million in 2005, a slight improvement from previous year’s EUR -10.4 million. Net loss improved by 20% from EUR -11.0 million in 2004 to EUR -8.8 million in 2005. This decrease is partly influenced by a one-off tax profit effect.
As of December 31, 2005, liquid assets including marketable securities totalled EUR 32.7 million compared with EUR 41.0 million at the end of 2004. The number of outstanding shares as of December 31, 2005 was 16,403,178. Earnings per share improved to EUR -0.54 in 2005 down from EUR -0.80 in 2004.
Epigenomics anticipates revenues in the range of EUR 7.5 to 9.0 million for full-year 2006. As in 2005, revenues will depend on the successful delivery of milestones from current and new partnerships as well as on our new out-licensing business. EBIT for FY 2006 is expected to be between EUR -12.5 and EUR -14.0 million. Liquidity for year end 2006 is expected to be within the range of EUR 18.0 to EUR 20.0 million.
Epigenomics will host an analyst meeting and press conference in Berlin at 10 AM/CET to present the fiscal year 2005 results and provide guidance for 2006. An accompanying presentation will be available for download on the Epigenomics website (www.epigenomics.com).
Epigenomics’ management will also host a conference call and webcast at 3 PM/CET. The dial-in number for the conference call is: +49 (0)69 58 999 0808 for European participants, and +1 480 629 9562 for US participants.
A recording of the conference call will be provided on Epigenomics’ website subsequently.
Epigenomics is a molecular diagnostics company with a focus on the development of novel products for cancer. By detecting and interpreting DNA methylation patterns, Epigenomics’ tests can potentially diagnose disease at an early stage and help guide physicians to select an appropriate therapy. Epigenomics collaborates with Roche Diagnostics on the development of several diagnostic products in cancer. The company has its headquarters in Berlin, Germany, and a wholly owned subsidiary in Seattle, USA. For more information, please visit our website at www.epigenomics.com.
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This communication expressly or implicitly contains certain forward-looking statements concerning Epigenomics AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of Epigenomics AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Epigenomics AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
- Contact Information
- Hong Thieu
- VP Corporate Affairs
- Epigenomics AG
- Contact via E-mail
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