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Epigenomics' 2012 Revenues Dip 29 Percent

NEW YORK (GenomeWeb News) – Epigenomics today said that revenues for full-year 2012 slipped 29 percent.

The German cancer molecular diagnostics company said revenues for the year ended Dec. 31, 2012 totaled €1.0 ($1.3 million), down from €1.4 million in 2011. Revenues resulted from product sales of the company's Epi proColon kits for colorectal cancer testing, royalty payments, and partnering fees.

The decline was due primarily to one-off licensing payments that Epigenomics received in 2011 but didn't in 2012, it said. The company is currently awaiting a decision by the US Food and Drug Administration on its premarket approval submission for Epi proColon, and it said that sales of the test in the US remained low in 2012 but moderately increased year over year.

FDA told Epigenomics last month that it is considering its PMA submission for the test on a priority review basis.

Other income for 2012 doubled to €1.0 million from €500,000 in 2011, driven by the reversal of "provisions related to the restructuring of the company in 2011," Epigenomics said. During the summer of 2011, it announced a reorganization of its business, which included cutting its workforce by almost half.

The firm's net loss for 2012 was lowered to €12.2 million from €15.6 million a year ago. In 2011 it took charges for "extraordinary" events, such as restructuring and goodwill amortization, that totaled €5.5 million. Epigenomics took no such charges in 2012, it said.

The firm ended 2012 with €2.7 million in cash and cash equivalents, and in January it raised €5 million.

Epigenomics said that pending approval by FDA of its Epi proColon test, it remains "cautious and does not expect revenues to significantly differ from 2012 levels," in 2013. Its net loss is anticipated to be in the range of €6.5 million to €7.5 million, as the full benefits of the 2011 restructuring effort take effect. In addition, its R&D costs are expected to be lower this year.

Epigenomics said it has enough financial resources to last through 2013 and is "diligently" exploring "all strategic options, including the possibility to raise capital."

Thomas Taapken, CFO and acting CEO of Epigenomics, said in a statement that the company achieved its primary goal of 2012 with the submission of its Epi proColon PMA to FDA.

"The next most significant milestone for us is to be able to start commercialization of our product in the most relevant market of the world, [the US], and to ultimately transform Epigenomics into a commercially driven molecular diagnostics company with growing revenue derived from product sales," Taapken said.