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Epigenomics Posts 102 Percent Jump in 2016 Revenues

NEW YORK (GenomeWeb) – Epigenomics today reported a 102 percent increase in 2016 revenues on strong sales of its Epi proColon blood-based colorectal cancer screening test.

For the 12-month period ended Dec. 31, Epigenomics' revenues climbed to €4.2 million ($4.6 million) from €2.1 million the year before. Product revenues were up 41 percent year-over-year to €2.2 million from €1.6 million, while licensing revenues increased to €600,000 from €200,000. The company also generated revenues of €1.4 million through the sale of intellectual property rights.

Epi proColon received US Food and Drug Administration approval in April 2016.

Epigenomics' net loss for the year widened to €11.2 million, or €.55 per share, from €9.0 million, or €.52 per share, in 2015. The company attributed the modest widening of  loss per share to a greater average number of shares outstanding in 2016 versus 2015.

The company's 2016 R&D spending decreased 12 percent to €5.1 million from €5.8 million, while its SG&A costs doubled to €10.2 million from €5.1 million, primarily due to share-based payment expenses and legal and audit fees for a filing with the US Securities and Exchange Commission.

Epigenomics finished 2016 with €11.5 million in cash and cash equivalents, and €753,000 in marketable securities.

Looking ahead, the firm said it expects its 2017 revenues to be "broadly consistent" with 2016 revenues, noting that its revenues can vary substantially based upon timing of decisions on medical guidelines and payor coverage related to Epi proColon. It also said that its current cash resources are expected to be sufficient to fund operations beyond 2017.

Separately today, Epigenomics announced that it has accepted a takeover offer by Blitz F16-83, a subsidiary of Chinese private equity firm Cathay Fortune International.