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Epigenomics AG Presents Mid-Year Results and Announces Restructuring Plan Heightening Focus on the Key U.S. Market

10.08.2011

Focus to be on near term product opportunities and key markets; streamlining of operations

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Key Financials H1 2011

H1 2011 (unaudited)

H1 2010 (unaudited)

% change

Revenue

0.99

0.97

1 %

EBIT

(5.7)

(5.4)

-5 %

Net Loss

(5.9)

(5.4)

-10 %

At Jun 30, 2011 (unaudited)

At Dec 31, 2010 (audited)

Liquid Assets

20.7

26.4

Employees

84

82

  • Revenue for the half year of EUR 0.99 million (2010: EUR 0.97 million) generated from out-licensing and partnering activities and increasingly, from product sales
  • Costs of sales amounted to EUR 0.25 million (H1 2010: EUR 0.31 million); gross margin improved to 75 % from 68 % in H1 2010
  • Operating cost of EUR 6.6 million comparable to H1 2010 (EUR 6.6 million)
  • R&D costs significantly decreased from EUR 3.6 million in H1 2010 to EUR 3.0 million in the reporting period
  • Operating (EBIT) loss increased marginally by 5 % to EUR 5.7 million (H1 2010: loss of EUR 5.4 million)
  • Net loss for H1 2011 amounted to EUR 5.9 million (H1 2010: EUR 5.4 million)
  • Cash consumption increased from EUR 4.4 million in H1 2010 to EUR 5.7 million in the reporting period due to a significant non-recurrent cash inflow from a collaboration partner in H1 2010 with no comparable inflow in H1 2011
  • Cash and cash equivalents at June 30, 2011 were EUR 20.7 million (December 31, 2010: EUR 26.4 million)

Update on Products

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European market penetration of Epi propro

Epigenomics continues working towards establishing its second product, Epi propro

Organizational Development & Restructuring

With the U.S. product development of Epi pro

  • From 2012 onwards, the U.S. headquarters will be relocated to a new business site, strategically located on the East Coast, as the nucleus for building and growing the U.S. commercial operations while retaining key Seattle staff in a satellite office.
  • Direct commercialization in the European self-payer segment will be de-emphasized and a key account approach for Epi pro pro
  • Early stage product and technology research will be discontinued and clinical research scaled down and remaining R&D resources will be concentrated on second generation product development and support of existing products.
  • Biomarker discovery and development capabilities will be maintained for collaborations with pharmaceutical companies in the area of personalized medicine.
  • Further cost savings will be realized through scaling down administration and management in proportion to new company structure.

These measures are expected to be fully implemented by the end of 2011 and to be mainly reflected in the annual accounts of 2011. The Company intends to reduce its total workforce from 84 employees at the end of H1 2011 to approximately 45 employees by year-end 2011. Starting in 2012, the company expects to further grow its U.S. commercial operations to prepare for an Epi pro

Contact Epigenomics AG

Dr. Achim Plum 
Sen. VP Corporate Development 
Epigenomics AG 
Tel +49 (0) 30 24345 368 
pr@Epigenomics.com  
www.epigenomics.com

Media inquiries can also be directed at:

Dr. Robert Mayer
Account Manager
Tel +49 (0)89 5238 8030
robert.mayer@collegehill.com  

Conference call for press and analysts

http://www.epigenomics.com/en/news-investors/investors/financial-reports.html

Dial-in number (within Germany):

+49 30 86871428

Dial-in number (within the UK):

+44 203 3679216

Dial-in number (within the U.S.):

+1 408 9169838

http://www.epigenomics.com/en/news-investors.htmlhttp://www.epigenomics.com/en/news-investors.html 

About Epigenomics

proEpigenomics legal 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. The information contained in this communication does not constitute nor imply an offer to sell or transfer any product, and no product based on this technology is currently available for sale by Epigenomics in the United States or Canada. The analytical and clinical performance characteristics of any Epigenomics product based on this technology which may be sold at some future time in the U.S. have not been established.