DGAP-News: Epigenomics AG Announces 2016 First Quarter Financial Results and Reports on Operational Highlights


DGAP-News: Epigenomics AG / Key word(s): Quarterly / Interim Statement
Epigenomics AG Announces 2016 First Quarter Financial Results and Reports on
Operational Highlights

23.05.2016 / 08:00
The issuer is solely responsible for the content of this announcement.

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Press release

Epigenomics AG Announces 2016 First Quarter Financial Results and Reports
on Operational Highlights
Berlin (Germany) and Germantown, MD (U.S.A.), May 23, 2016 - Epigenomics AG
(Frankfurt Prime Standard: ECX, OTCQX: EPGNY), the German-American cancer
molecular diagnostics company, today announced its financial results for
the first quarter 2016 ending March 31.

"During the first quarter 2016, our main efforts were focused on the final
steps towards FDA approval for our blood-based colorectal cancer screening
test Epi proColon(R). After a promising product launch in the U.S. in the
current second quarter and initial sales being recorded, we are fully
confirming our outlook for 2016", said Dr. Thomas Taapken, CEO/CFO of
Epigenomics AG. "Together with our partner Polymedco, we are focusing our
efforts on driving adoption by clinical laboratories. In this respect, the
recent launch of Epi proColon(R) by LabCorp(R) as the first U.S. laboratory
network was a significant milestone."

Q1/2016 Financial Results
  - Product revenue increased by 10% to EUR 186 thousand (Q1 2015: EUR 169
    thousand)

  - Total revenue decreased to EUR 295 thousand (Q1 2015: EUR 367 thousand)
    mainly due to a shortfall in R&D service income from EUR 157 thousand
    to EUR 6 thousand. Licensing income increased from EUR 41 thousand to
    EUR 103 thousand.

  - Operating costs in Q1 2016 amounted to EUR 5.3 million, up from EUR 3.7
    million in Q1 2015. The main driver for this development was a
    significant increase by EUR 1.6 million in non-cash expenses for share-
    based compensation, due to the high volatility of our share price
    between November 2015 and January 2016. Apart from this extraordinary
    one-off effect, our operating costs in Q1 2016 were at the same level
    as in Q1 2015.

  - Net loss for Q1 2016 amounted to EUR 4.3 million (Q1 2015: EUR 3.2
    million) translating into a net loss per share for this period of EUR
    0.23 (Q1 2015: net loss per share of EUR 0.20).

  - Cash consumption (cash outflow from operating and investing activities)
    was EUR 2.4 million in Q1 2016 compared to EUR 2.3 million in Q1 2015.

  - Liquid assets (including marketable securities) amounted to EUR 8.1
    million at the reporting date (Dec 31, 2015: EUR 8.6 million). During
    the first quarter 2016, four convertible notes were converted by their
    holders, providing the Company with additional liquidity of EUR 2.1
    million.

Operational highlights
  - FDA approval for Epi proColon(R): On April 12, the U.S. Food and Drug
    Administration (FDA) approved our lead product Epi proColon(R), the
    first and only blood-based colorectal cancer (CRC) screening test, for
    commercialization in the United States. This is a great achievement and
    a truly transformational event for Epigenomics, and it paves the way
    for us to offer an innovative, convenient and effective CRC screening
    option to millions of eligible Americans.

  - Chinese FDA names Septin9 CRC test "innovative medical product":
    According to the recently published "2015 Medical Device Registration
    Annual Report" only nine out of 7,530 approved medical devices in China
    received this label from the local regulators. The CFDA recognizes the
    domestic initiative and significant clinical value of blood-based
    Septin9 tests. This official recommendation will significantly support
    leveraging CRC screening programs in a country where CRC is a rapidly
    growing medical problem and where about 290 million people would be
    currently eligible for screening.

  - License agreement with BioChain: In March 2016, we entered into another
    strategic license agreement with BioChain on the development and
    commercialization of Epi proLung(R) in China. In the course of 2016,
    our partner is expected to initiate a clinical trial to validate our
    lung cancer detection test with the objective of gaining market
    approval by the CFDA for this test, too. In view of the high, rapidly
    growing prevalence of lung cancer among the Chinese population, the
    commercialization of a novel, blood-based test represents a major
    business opportunity for both companies. Epigenomics will receive
    upfront, milestone, and minimum annual payments as well as royalties on
    future revenues from BioChain and is entitled to commercialize this
    product exclusively in other markets outside China.

  - Progress with in-vitro lung-cancer biomarker: In April 2016, we
    presented data from our clinical research with our proprietary panel of
    blood-based DNA methylation biomarkers for the detection of lung cancer
    at the Annual Meeting 2016 of the American Association for Cancer
    Research (AACR) in New Orleans, LA, U.S.A. The data demonstrates the
    potential of our assay for the detection of lung cancer and encourages
    us to conduct additional, potentially larger studies to complete the
    development of the test.

Outlook 2016 fully confirmed
  - We are forecasting revenue for 2016 to be in the range of EUR 3 to 7
    million with the bulk of this in the second half of the year.

  - We also confirm our expectations for EBIT and EBITDA for 2016 within
    ranges of EUR -9.0 to -11.0 million (EBIT) and EUR -8.5 to -10.5
    million (EBITDA).

  - Our expectation for cash consumption in 2016 remains unchanged within a
    range between EUR 8.5 and 9.5 million. Our financial situation has
    benefited in the meantime from five conversions of convertible notes
    between January and April 2016.

  - The positive impact on our share price by the FDA's approval decision
    has further increased the likelihood that the five convertible notes
    still outstanding will be converted by their holders before maturity at
    year-end 2016, so that we now expect that our current liquidity will
    take us well into 2017.

Further Information

The full interim statement on the operational highlights and financial
results for Q1 2016 can be obtained from Epigenomics' website at:

http://www.epigenomics.com/en/news-investors/investors/financial-reports/
2016.html

Conference call for analysts and investors
The Company will also host an investor conference call at 2.30 pm CET /
8.30 am EDT, today. The presentation can be followed as a slide show on the
website.

The dial-in numbers for the conference call are:

Dial-in number (within Germany): +49 30 232531366
Dial-in number (within the UK): +44 203 3679216
Dial-in number (within the U.S.A.): + 1 646 7129911

Participants are kindly requested to dial in 10 minutes prior to the start
of the call.

Both an audio replay of the conference call and a transcript of the
conference call will be provided on Epigenomics' website subsequently:
http://www.epigenomics.com.

Details of both events will be available on Epigenomics' website at http://
www.epigenomics.com/en/news-investors.html

- End -

Contact Epigenomics AG

Peter Vogt
Vice President Corporate Communications & Investor Relations
Epigenomics AG
Geneststraße 5
10829 Berlin
Phone +49 (0) 30 24345 386
ir@epigenomics.com

http://www.epigenomics.com

About Epigenomics

Epigenomics is a molecular diagnostics company focused on blood-based
detection of cancers using its proprietary DNA methylation biomarker
technology. The company develops and commercializes diagnostic products
across multiple cancer indications with high medical need. Epigenomics'
lead product, Epi proColon(R), is a blood-based screening test for the
detection of colorectal cancer. Epi proColon(R) has recently received
approval from the U.S. Food and Drug Administration (FDA) and is currently
marketed in the United States, Europe, China and selected other countries.
The company is based in Germany and the United States. For more
information, visit www.epigenomics.com.



Epigenomics legal disclaimer

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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23.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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   Language:    English                                                     
   Company:     Epigenomics AG                                              
                Geneststraße 5                                              
                10829 Berlin                                                
                Germany                                                     
   Phone:       +49 30 24345-0                                              
   Fax:         +49 30 24345-555                                            
   E-mail:      ir@epigenomics.com                                          
   Internet:    www.epigenomics.com                                         
   ISIN:        DE000A11QW50                                                
   WKN:         A11QW5                                                      
   Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated   
                Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart  
 
 
   End of News    DGAP News Service  
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465603 23.05.2016