NEW YORK (GenomeWeb News) – Epigenomics today reported that its first-quarter revenues increased 36 percent due primarily to milestone payments received from Abbott and new collaborations, and its net loss dropped 16 percent year over year.
The German molecular diagnostics firm reported total revenues of €1.24 million (US$1.7 million), up 36 percent from €920,000 for the first quarter of 2008. Its diagnostics business accounted for 70 percent of its total revenue, while its biomarker service revenue accounted for 30 percent.
It attributed part of the increase its ongoing collaboration with Abbott. The firms are collaborating on an mSEPT9 test kit for colorectal cancer that will run on Abbott's m2000 instrument. Epigenomics said that the test is in the final stages of development and clinical validation, and it expects Abbott to launch the test in Europe in the fourth quarter of this year.
Epigenomics' net loss for the quarter declined 16 percent to €2.4 million from €2.9 million.
The company's R&D costs decreased 25 percent to €1.8 million from €2.4 million, and its marketing and business development costs decreased 6 percent to €210,000 from €230,000 year over year.
Epigenomics finished the quarter with €23.1 million.
In February, Epigenomics raised €5.18 million ($6.6 million) through the placement of 2,671,088 new shares at an issue price of €1.94 per share. A subsidiary of BB Medtech and funds managed by Abingworth subscribed for all the new shares.
The firm expects to generate revenue of at least €3 million for fiscal year 2009, with a cash burn rate of below €10 million.