The higher revenues were driven by a 38 percent increase in product sales, which include the company's Epi proColon blood-based colorectal cancer screening test.
The company attributed the decline in part to fewer orders for its Epi proColon colorectal cancer test.
The firm's blood-based Epi proLung lung cancer test looks for a combination of DNA methylation biomarkers.
The company will use the net proceeds to finance its current operations and expand its US commercialization capacities for its lead product, Epi proColon.
The drop off was attributed to unusually high revenues in Q2 2016 after a commercialization partner stocked up on Epigenomics' colon cancer test.
The change comes amid lower than expected revenues for the first half of this year, as well as an anticipated continued lack of reimbursement coverage in the US.
The company attributed the revenue decline to the conclusion of agreements with licensing partners for the sale of its products.
The revenue increase was driven by a 41 percent rise in product sales.
The company has agreed to a takeover bid that values it at roughly €171 million ($186.3 million).
VA patients will now have access to Polymedco's colorectal cancer screening products, including the Epigenomics Epi proColon.