BERLIN, Aug. 3, 2005 (PRIMEZONE) -- 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, 2005.
Second Quarter 2005: For the second quarter 2005, revenue increased by more than 15% to 1.78 million Euro compared with 1.54 million Euro for the same period 2004. Revenue was generated through established partnerships with Roche Diagnostics, Pfizer and Biogen Idec and a new collaboration with Qiagen. Research and development expenditure increased to 2.05 million Euro from 1.76 million Euro in the same period 2004. The increase primarily reflects the costs associated with running multiple proprietary tissue-based product programs. General and administrative expenses were 1.08 million Euro (Q2 2004: 0.77 million Euro ).
Earnings before interest and taxes (EBIT) was in line with expectations at -3.04 million Euro. Net loss for the second quarter 2005 amounted to 2.86 million Euro (Q2 2004: 2.88 million Euro). Net loss per share was 0.17 Euro compared to 0.25 Euro in 2004. The figures were calculated on 16.3 and 11.4 million shares, respectively.
Highlights of the Second Quarter 2005 included:
-- Signed new partnership with Qiagen to jointly develop preanalytical solutions and research products
-- Advanced own tissue-based tests further through clinical investigation
-- Progressed development of the Roche partnered programs on schedule
-- Presented successful clinical trial data at AACR and ASCO from prostate and breast cancer programs
-- Strengthened Supervisory Board with independent members including Prof. Dr. Dr. Uwe Bicker, Dr. Ann Kessler and Prof. Dr. Guenther.
First Half Year 2005: In the first six months ending June 30, 2005, revenues increased 31% to 3.63 million Euro compared to 2.77 million Euro for the same period 2004. Total operating expenses for the first six months amounted to 10.37 million Euro compared to 9.41 million Euro in 2004. Research and development expenditure increased by 12% from 3.72 million Euro in 2004 to 4.16 million Euro for the first six months of the year whilst cost of sales, i.e. costs for partnered program execution, remained relatively stable at 3.29 million Euro. General and administrative expenses were 2.07 million Euro. Earnings before interest and taxes (EBIT) in the first six months was -5.89 million Euro compared to -6.14 million Euro for 2004, an improvement of 4%. Net loss for the six months decreased by 13% to 5.41 million Euro from 6.25 million Euro. Basic loss per share was 0.33 Euro in the first six months of 2005 from 0.55 Euro in the same period 2004.
In line with previous guidance, Epigenomics expects to generate full-year 2005 revenues to reach between 8.5 and 10 million Euro in FY 2005. Also in line with expectations and previous guidance, EBIT for FY 2005 is expected to be significantly below FY 2004. Current guidance for EBIT is between -10.5 and -12 million Euro for FY 2005.
As of June 30, 2005, cash, cash equivalents, short-term investments and marketable securities totaled 37.18 million Euro compared with 41.04 million Euro at the end of December 2004. The net cash burn for operating activities of 4.07 million Euro for the first six months of 2005 was reduced by more than 25% compared to 5.43 million Euro for the same period in 2004.
"By delivering on our business strategy, this quarter has been very good for Epigenomics," explained Oliver Schacht, CFO of Epigenomics. "We have signed a multi-year alliance with Qiagen for the development and commercialization of DNA methylation based products for preanalytical solutions and research products that helped significantly increase our revenue compared to the same period in 2004. We are progressing well and on schedule with all of our established collaborations and have identified additional potential programs for our own tissue-based product portfolio. In July, we secured a Pharma Technology agreement with Philip Morris Research Laboratories to apply DNA methylation to tobacco-related research, supporting our revenue projections for the rest of the year. Finally, Epigenomics would like to welcome our new Supervisory Board members. We believe their extensive industrial knowledge and expertise will be a driving force in the future strategic direction of the company."
Today, there will be a conference call with management at 3 p.m. CET to discuss financial results and operational developments. To listen live, webcast is available through the Investor Relations section at http://www.epigenomics.com/en/investor_relations/Corporate_Calendar/.
Alternatively, the call dial-in is: Germany +49 (0)69 2222 2246 UK +44 (0)20 7365 1849 USA +1 718 354 1172 Replay (Passcode: 2874969#) will be available until August 4, 2005, 11:59 p.m. CET at: Germany +49 (0)69 22222 0418 UK +44 (0)207 784 1024 USA +1 718 354 1112
About Epigenomics
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.
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.