|
|
Epigenomics AG reports third quarter 2004 results
 |
 |
| Date: Wednesday, 03.11.2004 |
|
| Press Release, Berlin |
|
Berlin, Germany and Seattle, WA,USA - November 3, 2004 - Epigenomics AG (Frankfurt, Prime Standard: ECX), today reported financial results for its third quarter and the nine months ending September 30, 2004.
Third Quarter 2004:
For the three months ending September 30, 2004, revenues totaled €2.9 million compared with €2.5 million for the same period 2003. These revenues were generated through our ongoing collaborations and partnerships with Roche, Astra Zeneca and Wyeth. Total operating expenses for the third quarter amounted to €5.0 million compared to €4.7 million in 2003. Research and development expenditure increased by 4.9% to €2.0 million. In the same period, general & administrative expenses were €1.1 million. Earnings before interest and taxes (EBIT) was €(1.67) million compared to €(1.77) million for 2003. Net loss for the 3 months increased by 19.5% to €(2.49) million driven entirely by financial expenses of € 800k in Q3-2004. The net cash burn for the third quarter of 2004 was €2.3 million.
Highlights of the Third Quarter 2004 included:
office/images/list_style_undefined.gif)\">
- Partnered diagnostic product development progressed on track
- Lead products moved into large studies in blood samples and paraffin tissues
- Next Roche milestone met in breast cancer screening test development
- Pharmacodiagnostic oncology agreements signed with Biogen Idec and Pfizer
First Nine Months 2004:
In the first nine months ending September 30, 2004, revenues amounted to €5.7 million compared to €7.5 million for the same period 2003. The decrease was due to lumpy milestone payments from our collaboration with Roche Diagnostics received in the first nine months of 2003. Total operating expenses for the first nine months amounted to €14.1 million compared to €13.9 million in 2003. Research and development expenditure decreased by 5.4% to €5.7 million for the first 9 months of the year whilst cost of sales, i.e. costs for partnered program execution, increased by 17,6% to €4.5 million. General & administrative expenses were €2.7 million. Earnings before interest and taxes (EBIT) in the first 9 months was €(7.6) million compared to €(5.2) million for 2003. Net loss for the 9 months increased by 51.6% to €(8.5) million. Basic loss per share was identical at €(0.66) and €(0.66), respectively, but based on very different average numbers of shares outstanding.
In line with the guidance given in the IPO prospectus, Epigenomics expects to generate full-year 2004 revenues significantly below FY 2003, with current revenue expectations to reach between €7.0 and €9.0 million in FY 2004. Also in line with expectations and previous guidance, EBIT for FY 2004 is expected to be significantly below FY 2003. Current guidance for EBIT is between € (9.0) and (11.0) million for FY 2004.
As of September 30, 2004, cash, cash equivalents, short-term investments and marketable securities totaled €44.9 million compared with €19.4 million at the end of Q3-2003. The net cash burn before financing activities was €8.0 million for the first nine months of 2004 compared to €6.9 million for the same period in 2003 (excluding investments for treasury purposes).
"Since successfully going public in July, we have delivered on our milestones and remain on track for 2004. As expected, our 2004 revenues will be significantly lower than 2003 and corresponding losses will be higher, due to timing of lumpy milestone revenues which significantly impacted 2003 results and do not have their equivalents in 2004. Overall, the bottom line is expected to remain in line with our full-year guidance," explained Oliver Schacht, CFO of Epigenomics. "During the third quarter, we successfully met the next milestone in the development of a breast cancer early detection test as part of our collaboration with Roche Diagnostics. In the Pharma Technology SBU, we exceeded our 6-month partnering objective by signing two pharmacodiagnostic project deals in oncology, one with Biogen Idec and bringing in Pfizer as a new customer to our DNA Methylation pharmacodiagnostics efforts."
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 and pharmacodiagnostic 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. |
|
| back |
|
top of the page
|
