DGAP-News Epigenomics AG reports financial results for the first nine months of 2020
DGAP-News: Epigenomics AG / Key word(s): Quarterly / Interim Statement/9 Month figures
Epigenomics AG reports financial results for the first nine months of 2020
Berlin (Germany) and San Diego, CA (U.S.A.), November 12, 2020 - Epigenomics AG (FSE: ECX, OTCQX: EPGNY, the "Company") today reported financial results (IFRS, unaudited) for the first nine months of 2020.
Major Events after the End of the Reporting Period
- On October 16, 2020, the U.S. Centers for Medicare and Medicaid Services (CMS) published a preliminary negative reimbursement proposal in connection with the National Coverage Determination (NCD) of Epi proColon, Epigenomics' blood test for colorectal cancer screening. Following the 30-day public comment period ending on November 15, 2020, which will be used to convince CMS of the scientifically proven benefits of the Epi proColon blood test, CMS will publish its final decision within 60 days.
Greg Hamilton, CEO of Epigenomics AG: "We still do not understand the CMS' preliminary decision. It is unexplainable to us why our microsimulation studies from CISNET and Harvard Medical School were not taken into account in CMS' decision making process. Both studies were published in renowned, peer-reviewed scientific journals and clearly show that Epi proColon can reduce the incidence and mortality of colorectal cancer as effectively or better than other approved methods. Ultimately, the CMS' preliminary decision is thus at the expense of the patients and accepts avoidable deaths. We believe there is a chance that CMS will change its final decision based on these results, as it has done in the past, and we will do everything in our power to change CMS' preliminary decision."
- On October 26, 2020, the Executive Board of Epigenomics AG further announced that pursuant to Sec. 92 par. 1 German Stock Corporation Act ("Aktiengesetz"), a cumulative loss of more than half of the nominal share capital of the Company has been incurred. Thus, the Company published the invitation to an Extraordinary General Shareholders' Meeting in due time on November 5, 2020,which will take place as a virtual event on November 27, 2020.
- In addition, on November 3, 2020, the Company announced the intention to propose to the Extraordinary General Shareholders' Meeting to reduce the share capital and to authorize the issuance of convertible bonds with a nominal value of up to EUR 5.5 million.
Greg Hamilton: "We strongly believe there is value in both our FDA approved blood test and our future product pipeline. However, our current liquidity reach of Q1 2021 limits our ability to both maximize our chances of reversing CMS' decision for Epi proColon and identifying and executing strategic alternatives that would maximize shareholder value. The convertible bonds, which include a so-called back-stop agreement of up to EUR 4 million from our largest shareholder Deutsche Balaton Aktiengesellschaft, are an important bridge financing for the company. Each shareholder will receive a subscription right to prevent dilution of his or her shareholding. We ask all shareholders to register for the General Shareholders' Meeting and to follow our proposals when voting in order to maximize our opportunity for success."