Epigenomics AG Reports Second Quarter 2006 Financial Results
Earnings and cash position within expectations - Qiagen EpiTect research product launched – Strategic Affymetrix diagnostics platform deal signed
Thursday, 03.08.2006, Berlin, Germany and Seattle, WA, USA, Epigenomics AG (Frankfurt, Prime Standard: ECX), a molecular diagnostics company developing tests based on DNA methylation, today reported financial results for the second quarter and first half ending June 30, 2006.
Second Quarter 2006:
For the second quarter 2006, revenue totalled to EUR 0.6 million, EBIT was at EUR –4.4 million and costs for R&D were at EUR 2.4 million while general and administrative costs were at EUR 1.0 million. Marketing and business development costs totalled to EUR 0.6 million.
Our net loss for the period was at EUR 4.3 million and Epigenomics’ balance sheet total was at EUR 38.4 million as of June 30, 2006.
“Any year-on-year comparison would reflect our transition from complete reliance on R&D revenues, to the far more self-confident behaviour of heavily re-directing our resources towards our own product development”, stated Alexander Olek, the company’s CEO.
Highlights of the Second Quarter 2006 included:
* Demonstration of outstanding performance of new biomarker-panel in pre-cancerous colon polyps
* Strategic diagnostics platform alliance with Affymetrix
* Launch of Qiagen’s EpiTect bisulfite treatment kit
* Significant progress in its product development pipline for molecular pathology tests as well as screening tests
* Presentation of clinical data for two proprietary biomarkers
* Prostate molecular classification test (PMCT) was moved into formal clinical development with intended market launch in 2008
* Follow-on partnerships with AstraZeneca and Philip Morris
* Entered a research collaboration with Stanford University to evaluate additional potential applications of the colon cancer screening marker
“We are very excited about the progress we have made over the reporting quarter, especially about the spectacular performance of our expanded colon panel in pre-cancerous lesions,“ said Alexander Olek, CEO of Epigenomics. “We have launched the EpiTect bisulfite treatment kit with Qiagen and also just recently signed the strategic diagnostics platform alliance with Affymetrix which enables us to provide a complete platform for our pathology tests. We are well progressing with our products and are confident that our efforts will pay off at the end of 2007,” Olek added.
First Half Year 2006:
In the first six months ending June 30, 2006, revenues totalled to EUR 1.1 million. Earnings before interest and taxes (EBIT) in the first six months was EUR -8.4 million. Research and development expenditure was at EUR 4.3 million for the first six months of the year and general and administrative expenses were at EUR 2.1 million. Marketing and business development costs totalled to EUR 1.2 million.
Net loss for the first six months of 2006 was EUR 8.2 million, basic loss per share was EUR 0.50.
Epigenomics’ cash flow and financial position in H1 2006 were mainly affected by the continued net cash consumption from operations. Overall, the financial position has developed in line with expectations with liquid assets amounting to EUR 25.5 million as of June 30, 2006.
“We expect liquidity at year-end at the lower end of our previous guidance,” said Oliver Schacht, CFO of Epigenomics. “Due to timing and structuring of expected deal flow in the second half of 2006 the associated revenues and consequently EBIT are expected to be somewhat below previous expectations for fiscal 2006 since short-term revenue recognition is anticipated below cash inflow on some of the deals,” Oliver Schacht explained further.
Today, there will be a conference call with management at 4pm CET to discuss financial results and operational developments.
The call dial-in is:
Germany +49 (0)69 58 999 0804
USA +1 480 293 1743
The conference call will be recorded and afterwards available at the download section on our website.
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.
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