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Epigenomics AG reports financial results for the first nine months of 2020 - Seite 2

9M 2020 Financial results

• Total revenue in the first nine months of 2020 was EUR 541 thousand compared to EUR 847 thousand for the same period of the previous year, due to the effects of the Covid-19 pandemic. This was caused by lower product revenue in the U.S., as many eligible patients postponed their medical checkups in the current pandemic situation.
• Research & development costs declined from EUR 5,654 thousand in the prior year to EUR 3,412 thousand in the 9-month period mainly driven by the interruption of almost all clinical studies in the U.S.A., including the post-approval study for Epi proColon, forced by the Covid-19 pandemic.
• Selling, general and administrative costs decreased by EUR 1,429 thousand to EUR 5,442 thousand (9M 2019: EUR 6,871 thousand) in the reporting period, due to the reduction in sales and marketing activities, as virtually all relevant events such as conferences and trade fairs were cancelled due to the pandemic.
• Overall, operating costs fell from EUR 13.4 million to EUR 10.9 million compared to the first nine months 2019 for the reasons mentioned above.
• Adjusted EBITDA (before share-based payment expenses) for the first nine months of 2020 was EUR -8.1 million (9M 2019: EUR -9.7 million).
• The net loss for the period improved to EUR 9.1 million (9M 2019: EUR 10.0 million); the loss per share additionally decreased to EUR 0.20 (9M 2019: EUR 0.28) due to the increased number of shares resulting from the latest capital increases.
• The cash outflow from operating activities fell significantly in the first nine months of 2020 by EUR 3.3 million to EUR 7.5 million (9M 2019: 10.8 million). This is due to the improved operating result (EBIT) compared to the previous year.
• As of September 30, 2020, the Company had cash and cash equivalents (including marketable securities) of EUR 6.6 million compared to EUR 11.0 million at the end of 2019.

Outlook 2020:

Revenue / EBITDA / Cash consumption

• Due to the continued uncertainty surrounding the effects of Covid-19, Epigenomics AG, like many publicly traded companies and as already explained in the H1 2020 report, has pulled its revenue guidance for 2020. Moreover, the Company has now revised its guidance for adjusted EBITDA before share-based payment expenses and cash consumption upward as the cost reduction programs initiated in spring are now showing significant results. EBITDA before share-based payment expenses is expected to be within a range of EUR -10.0 million to EUR -11.0 million (previously: EUR -10.5 million to EUR -12.5 million) and cash consumption is expected to be between EUR 10.0 million and EUR 11.0 million (previously: EUR 10.5 million to EUR 12.5 million).

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