Epigenomics AG / Key word(s): Strategic Company Decision/Forecast
06-March-2019 / 20:57 CET/CEST
Epigenomics AG terminates collaboration with Chinese licensing partner and announces anticipated revenue growth in 2019 outlook
Berlin, March 6, 2019 – Epigenomics AG (Frankfurt Prime Standard: ECX, OTCQX: EPGNY; the “Company”) today has decided to terminate its collaboration with its Chinese partner BioChain for the licensing of the Septin9 marker and the exclusive distribution rights in China for Epi proColon, a blood test for colorectal cancer detection, with immediate effect. The company makes use of its contractual right to terminate the agreement when BioChain did not pay Epigenomics more than the contractually agreed minimum royalties over a period of three years. Epigenomics AG will evaluate all options for the distribution of Septin9 in China to maximize the full potential of the test in this key market.
Taking also into account the termination of the license agreement with Biochain, the Company has today determined its outlook for the financial year 2019. Epigenomics AG expects revenues to be in a range of EUR 3.0 to 6.0 million (compared to EUR 1.5 million for the financial year 2018 based on preliminary, unaudited numbers). This represents an estimated increase in revenues of between 100% and 300% which is expected to be essentially driven by the new reimbursement rate published by Medicare of $192 per Epi proColon test. Adjusted EBITDA (EBITDA before share-based payment expenses) is expected to be in the range of EUR -11.5 to -14.0 million (compared to EUR -11.4 million for the financial year 2018 based on preliminary, unaudited numbers). Given the termination of the license agreement with Biochain, future licensing revenue on the Chinese market is not included in the outlook for 2019.
Explanatory notes regarding the term “EBITDA before share-based payment expenses” can be found in section 7.3 (pages 131-132) of the prospectus published by the Company on October 8, 2018. The prospectus is available on the internet at: www.epigenomics.com/news-investors/capital-increase.
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 expected 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.
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|End of Announcement||DGAP News Service|