Epigenomics' 3rd-qtr 2006 loss widens 25%

German molecular diagnostics firm Epigenomics AG says that its revenue for the third quarter of 2006 was 1.2 million euros (1.5 million), down 43% on the comparble period last year, due to significantly higher R&D contributions its development partner Roche Diagnostics made in 2005, as well as slower-than-expected generation of new business.

The company's loss before interest and taxes widened 25% to 3.8 million euros and resulted mostly from the drop in revenue as operating costs remained similar to last year, while R&D expenses increased 10% to 2.2 million euros.

During the period, Epigenomics conducted an initiative to focus its product development efforts on later-stage programs in oncology to maximize its future growth potential after these initiatives were identified as its key value drivers and greatest commercial opportunities. The partnership with Roche Diagnostics, as well as Epigenomics' own tissue test projects, will continue as planned. As part of the restructuring program, which will lead to expected annual cost savings of 3.0 million euros, Epigenomics' Berlin-based workforce will lose 34 positions and the effects are expected to impact earnings in first-quarter 2007.