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Publication of Inside Information according to Article 17 MAR

Epigenomics AG successfully completes capital increase; gross proceeds of EUR 22.3 million

Berlin, October 23, 2018 – Epigenomics AG (FSE: ECX; OTCQX: EPGNY) (“Company”) has fully placed the new shares from the capital increase resolved on October 7, 2018 of up to EUR 12,007,180 (corresponds to 50% of the existing share capital). Accordingly, the Company’s share capital will be increased from currently EUR 24,014,360 to EUR 36,021,540 by 12,007,180 new registered shares of the Company against contribution in cash and partly in kind.

The private placement with selected qualified investors was significantly oversubscribed. All shares of the private placement were allocated to multiple new institutional investors in the U.S.A, including healthcare funds.

Gross proceeds of the capital increase amount to EUR 22.33 million, thereof EUR 21.25 million in cash. Furthermore, the financial liabilities from the redemption of a convertible bond subscribed by Cathay Fortune International Company Limited are reduced by EUR 1.08 million from EUR 7.1 million to EUR 6.02 million.

The capital increase needs to be registered in the commercial register, which the Executive Board will apply for shortly. The inclusion of the new shares under the Company’s existing listing (ISIN DE000A11QW50) is currently expected at or around October 29, 2018.

Contact:
Peter Vogt, VP Corporate Communications & Investor Relations, Geneststrasse 5, 10829 Berlin, Tel +49 (0) 30 24345 386, Fax +49 (0) 30 24345 555, E-Mail: ir@epigenomics.com

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN AND AUSTRALIA.

Important Notice

This publication does, in particular, not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the laws of any state within the U.S., and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons, except that the offered shares may be offered or sold to qualified institutional buyers in reliance on certain exemptions from the registration requirements of the Securities Act and applicable state securities laws. This publication and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to United States persons or publications with a general circulation in the United States. No public offering of the shares is being made in the United States.

Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan.

Forward-Looking Statements

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.

Press release

Centers for Medicare & Medicaid Services publish final rate of $192 for Epigenomics’ colorectal cancer screening blood test Epi proColon(R)

Berlin (Germany) and San Diego, CA (U.S.A.), October 22, 2018 – Epigenomics AG (Frankfurt Prime Standard: ECX, OTCQX: EPGNY) today announced that the Centers for Medicare & Medicaid Services (CMS) published a final rate of $192 for Epi proColon, the first and only FDA-approved blood test for colorectal cancer screening.

This announcement confirms the preliminary gapfill rate as determined by the Medicare Administrative Contractors, published on June 11, 2018. The $192 per test rate will be included in the 2019 Clinical Laboratory Fee Schedule that is expected to be published in November 2018.

“The final CMS rate of $192 is an important accomplishment for the company as it appropriately values our innovative blood-based colorectal cancer screening test,” said Greg Hamilton, CEO of Epigenomics AG. “Medicare pricing sets a benchmark for value and it’s an important component of our commercialization strategy.”

About Epi proColon(R)

Epi proColon is indicated for colorectal cancer screening in average-risk patients who are unwilling or unable to perform colorectal cancer screening by colonoscopy and stool-based methods.

For patients, the test only requires a simple blood sample drawn as part of routine healthcare provider visits. There are no dietary restrictions or alterations in medication required for the test. The sample will be analyzed at a national or regional diagnostic laboratory.

For more information on Epi proColon, visit www.epiprocolon.com.

About Epigenomics

Epigenomics is a molecular diagnostics company focused on blood-based detection of cancers using its proprietary DNA methylation biomarker technology. The company develops and commercializes diagnostic products across multiple cancer indications with high medical need. Epigenomics’ lead product, Epi proColon, is a blood-based screening test for the detection of colorectal cancer. Epi proColon has received approval from the U.S. Food and Drug Administration (FDA) and is currently marketed in the United States, Europe, and China and selected other countries. Epi proLung(R), a blood-based test for lung cancer detection, has received CE mark in Europe.

For more information, visit www.epigenomics.com.

Contact in the U.S.
David Bull
Director of Marketing
Phone: 240.912.6430
David.Bull@Epigenomics.com

Contact Epigenomics AG
Peter Vogt
VP Corporate Communication & Investor Relations
Epigenomics AG
Geneststraße 5
10829 Berlin
Phone +49 (0) 30 24345 386
ir@epigenomics.com

Epigenomics 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 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.

Publication of Inside Information according to Article 17 MAR

Epigenomics AG sets subscription price at EUR 1.86 per new share

Berlin, October 16, 2018 – The Executive Board of Epigenomics AG (FSE: ECX; OTCQX: EPGNY) (“Company”) resolved today, with approval of the Supervisory Board, to set the subscription price per new share at EUR 1.86 as part of the capital increase resolved on October 7, 2018. The subscription price represents a discount of 9.7% to the volume-weighted average price for one share of the Company on the electronic trading system XETRA on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) from the beginning of the subscription period on October 9, 2018 until close of trading on October 15, 2018.

The new shares are offered to shareholders of the Company as part of a public offering in Germany against contribution in cash by means of indirect subscription rights and partly in kind by means of direct subscription rights during the subscription period from October 9, 2018 until October 22, 2018. The subscription ratio is 2:1. This means that for each two existing shares in the Company a subscription right for one new share is allocated. Any new shares that are not subscribed for during the subscription period shall be offered to selected qualified investors as part of an international private placement.

Contact:
Peter Vogt, VP Corporate Communications & Investor Relations, Geneststrasse 5, 10829 Berlin, Tel +49 (0) 30 24345 386, Fax +49 (0) 30 24345 555, E-Mail: ir@epigenomics.com

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN AND AUSTRALIA.

Important Notice

This publication does not constitute or form part of, and should not be construed as an offer or an invitation to sell, or issue or the solicitation of any offer to buy or subscribe for, any securities. The shares will be solely offered on the basis of the published subscription offer and the prospectus, both published on October 8, 2018. The prospectus was immediately published after approval by the German Federal Financial Supervisory Authority (BaFin – Bundesanstalt für Finanzdienstleistungsaufsicht). The prospectus is available free of charge at Epigenomics AG, Geneststrasse 5, 10829 Berlin, Germany, or on the Company’s website at www.epigenomics.com.

This publication does, in particular, not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the laws of any state within the U.S., and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons, except that the offered shares may be offered or sold to qualified institutional buyers in reliance on certain exemptions from the registration requirements of the Securities Act and applicable state securities laws. This publication and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to United States persons or publications with a general circulation in the United States. No public offering of the shares is being made in the United States.

Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan.

Forward-Looking Statements

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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Published to the market and investors on 10^th October 2018 @ 10.19am (London time).

Epigenomics (ECX-DE): Strong tailwinds expected from Epi proLiver
Recommendation: OUTPERFORM
Target Price: EUR4.01 (reduced from EUR6.82)
Current Price: EUR2.24 (COB on 9^th October 2018)

KEY TAKEAWAY

Epigenomic’s growing portfolio of liquid biopsy tests represents strong commercial potential. The company recently announced plans for a new test in their portfolio, to CE mark its mSEPT9 blood test for liver cancer. We expect this to happen by year-end 2018E, allowing for commercialisation in Europe. We are convinced about the positive commercial outlook of Epigenomic’s liquid biopsy tests due to a differentiated profile, fast readouts, a large target markets and significant health-economic impact. We have built a proprietary costing and economic analysis to illustrate direct diagnostic cost savings with Epi proLiver and a health economic benefit of catching liver cancer patients earlier than with standard of care. We reiterate our OUTPERFORM recommendation and adjust our DCF-derived target price to EUR4.01 (from EUR6.82).

Liver cancer – a large commercial opportunity

A c.EUR3bn global market together with the growing trend towards minimally invasive liquid biomarkers, makes liver cirrhosis surveillance for HCC a promising market for Epigenomics. The company intends to initiate a prospective clinical trial in the U.S. for submission to the FDA, and potentially CFDA for approval in China. We forecast strong growth in the liquid biopsy market and see strong strategic and commercial potential for Epigenomics by capitalising on this opportunity.

Proprietary cost analysis indicates strong health-economic savings potential

We conducted a cost-analysis in order to estimate the direct and indirect savings associated with implementation of an effective blood-based screen such as Epi proLiver. Our analysis shows a significant reduction in the frequency of false positives due to inaccurate ultrasound testing, thus decreasing the number of redundant MRI/CT scans, the costs associated with avoidable complications, as well as premature mortality and morbidity.

U.S. Congress supports coverage of blood-based colorectal cancer screening tests

In early October, Epigenomics announced that the U.S. Congress urges the Centers of Medicare & Medicaid Services (“CMS”) to provide coverage for blood-based screening tests for colorectal cancer. This positive step towards legislative approval generates a strong tailwind for Epi proColon, paving the way for widespread adoption and utilisation across the U.S., increasing screening participation rates and decreasing the frequency of late-stage colon cancer diagnoses.

Valuation suggests ample upside

In our view, the key uncertainty remains reimbursement and inclusion into medical guidelines for Epi proColon, and CE mark for Epi proLiver, but with the new product candidate de-risking the commercial outlook, Epigenomics offers a highly attractive investment opportunity. We reiterate our OUTPERFORM recommendation and adjust our target price to EUR4.01 (from EUR6.82) to reflect delays in the development of Epi proLung.

Kind regards,

Martin Brunninger | Analyst

goetzpartners Healthcare Research Team | Research Team

goetzpartners securities Limited

The Stanley Building, 7 Pancras Square, London, N1C 4AG, England, UK.

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