NEW YORK (GenomeWeb News) – Epigenomics today reported a 67 percent drop year over year in first-quarter revenues.
For the three months ended March 31, the German molecular diagnostics firm reported €200,000 ($258,892) in revenues, down from €600,000 a year ago, when it received a payment from Qiagen for a non-exclusive license to Epigenomics' methylated Septin-9 biomarker.
The company reduced its R&D spending 13 percent year over year to €1.4 million from €1.6 million a year ago after ending early-stage research activities. Its SG&A costs also were reduced 13 percent to €1.4 million from €1.6 million as the sales and marketing departments were restructured, it said.
Cash consumption decreased 11 percent to €2.5 million from €2.8 million a year ago, and included €300,000 related to a restructuring of the firm announced during the summer and payments associated with its FDA submission for Epi proColon.
The company cut its net loss for the quarter to €2.3 million from €2.8 million a year ago, and it ended the period with €11.5 million in liquidity.
The company said it is progressing on its submission to the US Food and Drug Administration of the Epi proColon colorectal cancer screening assay. In January, Epigenomics said it submitted the first module of its premarket approval application. The second module was submitted in March, and a third module remains on schedule for submission during the current quarter, with a fourth module planned for submission in the second half of the year.
The company also has begun an additional clinical study for the assay, comparing it with fecal immunochemical testing, which is necessary for its regulatory submission.
"Epigenomics remains focused on completing the FDA submission later this year and on its ultimate goal of introducing Epi proColon as the first approved blood-based test for the early detection of colorectal cancer in the US market," CEO Geert Nygaard said in a statement.
The company, however, cautioned that a lack of funds "might pose a threat to the execution of Epigenomics' plans," and it is evaluating all its options including securing additional funds "through a capital markets transaction."