DGAP-News

Epigenomics AG Reports Financial Results for Fiscal Year 2020 - Seite 2

• Due to the negative NCD and capital constraints the Company is evaluating various strategic options. In particular, the Company is evaluating the market for a potential sale of the Company by way of a share deal (public takeover) or asset deal to one or more investors as part of an M&A transaction. For this purpose, a corresponding sales process has been set up and the Company is in discussions with several potential parties.
• The Company has mandated a leading international investment bank as advisor in connection with the sales process.

Greg Hamilton, CEO of Epigenomics AG: "Even though the NCD decision has set us back significantly at the start of the current fiscal year 2021, we believe that Epigenomics is a valuable liquid biopsy technology platform. We are investigating multiple options to maximize this value for shareholders."

Financial results 2020

• Total revenue decreased to EUR 840 thousand (2019: EUR 1.1 million), mainly due to the impact of the COVID 19 pandemic. In particular, the number of tests in the U.S.A. declined, as some of the patients eligible for screening skipped or postponed their screenings due to the suspected risk of infection. Both product revenue (from EUR 988 thousand in the previous year to EUR 584 thousand) and license revenue (from EUR 137 thousand in the previous year to EUR 33 thousand in the reporting year) declined.
• Selling, general and administrative costs decreased from EUR 8.9 million (2019) to EUR 7.3 million, mainly due to reduced sales and marketing costs in the U.S. Similarly, research and development costs declined from EUR 7.3 million (2019) to EUR 3.7 million, again because of the COVID-19 pandemic, which severely hampered clinical trials in the U.S.
• EBITDA (before share-based payment expenses) improved to EUR -10.5 million (2019: EUR -13.3 million) due to reduced total operating costs and was thus at the lower end of the guidance from the beginning of 2020 (EUR -10.5 million to EUR -12.5 million).
• The net loss for the year fell to approximately EUR -11.7 million (2019: EUR -17.0 million); the loss per share also decreased to EUR -2.02 (2019: EUR -3.65).
• Cash consumption decreased to EUR -9.6 million in fiscal year 2020 (2019: EUR 13.5 million) due to lower operating costs.

Outlook 2021