​​​​​​​Epigenomics decides to restructure to minimize costs

Epigenomics decides to restructure to minimize costs

Berlin (Germany) and San Diego, CA (U.S.A.) February 15, 2023 – The Executive Board of Epigenomics AG (Frankfurt Prime Standard: ECX1, OTCQX: EPGNY; the “Company”) today decided to restructure the Company and significantly reduce the Company’s operations. The restructuring is being undertaken with the intention of minimizing costs. It is also intended to extend the timeframe available to the Company to secure funding for the further development of the “Next-Gen” test for the detection of colorectal cancer (CRC).

As part of the restructuring, it is planned that the Company will undertake the following measures in particular:

• The Company will stop the sale of Epi proColon and recall the product. 
• The number of employees at the sites in Berlin and San Diego is reduced to the level required to maintain minimal business operations.
• A reduction in the number of Supervisory Board members to three shall be proposed to the Annual General Meeting in 2023. In addition, Heino von Prondzynski has resigned as chairman and as member of the Supervisory Board with immediate effect due to health and costs reduction reasons. Franz Walt has resigned from the Supervisory Board with effect as of April 30, 2023, as part of the restructuring cost reduction efforts. In the place of Heino von Prondzynski, the Supervisory Board has elected Dr Helge Lubenow as the new chairwoman of the Supervisory Board.
• The Company will promptly apply for the revocation of its admission to the sub-segment of the regulated market of the Frankfurt Stock Exchange with additional post-admission obligations (Prime Standard). The revocation, which will generally take effect three months after publication of the revocation decision by the management board of the Frankfurt Stock Exchange, will not otherwise affect the admission to the regulated market (General Standard).
• The Company will terminate the existing American Depository Receipts program.
• Furthermore, the annual report with the consolidated financial statements and the financial statements for Epigenomics AG for the financial year 2022 are expected to be published on April 21, 2023.

Greg Hamilton, CEO of Epigenomics AG: “As announced, we have explored numerous alternatives over the past months to secure funding for the FDA pivotal study of our “Next-Gen” test. Unfortunately, we have not been able to raise additional capital in the current market environment and therefore, in close consultation with the Supervisory Board, we have decided to take this tough but, in our view, unavoidable step to ensure the continued existence of the Company. We very much regret to initiate the above measures. On behalf of the entire Executive Board, I would like to thank all our employees for their often-tireless efforts. We remain convinced of the benefits of our test and hope to find a solution for the further development and approval of the test.”

On this basis, the executive board expects revenues for 2023 to be in the range of EUR 60,000 to EUR 200,000. Otherwise, the financial outlook will be announced as part of the Annual Report.

About Epigenomics

Epigenomics AG is a molecular diagnostics company focused on blood testing for the early detection of cancer. Based on its proprietary biomarker technology for the detection of methylated DNA, Epigenomics develops and markets blood tests for various cancer indications with high unmet medical need. Epigenomics’ lead product is the blood test Epi proColon® for the early detection of colorectal cancer. Epi proColon is approved by the U.S. Food and Drug Administration (FDA) and is marketed in the United States and Europe as well as other selected countries. HCCBloodTest, a blood test for the detection of liver cancer, have received the CE Mark for marketing in Europe.

For further information please visit www.epigenomics.com.

Contact:
Company
Epigenomics AG, Geneststrasse 5, 10829 Berlin
Tel +49 (0) 30 24345 0, Fax +49 (0) 30 24345 555, Email: contact@epigenomics.com

Investor Relations
IR.on AG, Frederic Hilke, Tel +49 221 9140 970, Email: ir@epigenomics.com

Note on forward-looking statements

This publication expressly or implicitly contains forward-looking statements concerning Epigenomics AG and its business. These statements involve certain known and unknown risks, uncertainties and other factors that may cause Epigenomics AG’s actual results, financial condition and performance to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Epigenomics makes this announcement as of the date of this release and does not intend to update any forward-looking statements contained herein as a result of new information or future events or otherwise.