NEW YORK (GenomeWeb) – Epigenomics today reported a 55 percent drop in its 2017 revenues, a decline the company attributed in part to fewer orders for its Epi proColon colorectal cancer test.
For the year ended Dec. 31, Epigenomics posted revenues of €1.9 million ($2.3 million) from €4.2 million the year before. Revenues of about €1.3 million were generated through licensing income, while product sales for the year were approximately €500,000, the firm said.
According to the company, 2016's revenues were buoyed by sales of Epi proColon to US commercialization partner Polymedco, which stocked up on the test following US Food and Drug Administration approval early in the year.
Reimbursement difficulties also affected 2017 revenues for Epi proColon. Epigenomics had been expecting the Centers of Medicare and Medicaid Services to make a final decision on pricing for the test last year, but the agency has yet to do so.
In its annual report, the company said CMS is expected to publish a final reimbursement price this November. Epigenomics added that securing CMS reimbursement on Epi proColon remains its key goal for 2018, and that it will be able to apply for that reimbursement as soon as the test is included in the screening guidelines of a medical association.
A reimbursement decision could also result from a bipartisan bill introduced in the Senate earlier this year that calls for Medicare coverage for FDA-approved colorectal cancer screening blood tests, Epigenomics said. A similar bill was introduced in the House in late 2016.
Epigenomics' 2017 net loss narrowed to €9.8 million, or €.44 per share, from €11.3 million, or €.55 per share, the year before.
The Berlin-based company's R&D spending for the year dropped 16 percent to €4.3 million from €5.1 million in 2016, while SG&A costs declined 22 percent to €8.0 million from €10.2 million.
Epigenomics ended the year with €12.8 million in cash and cash equivalents, and €905,000 in marketable securities.
"In 2017, we remained focused on our key priorities — medical guideline inclusion and initial payor coverage for … Epi proColon — while maintaining high cost discipline in all company areas," Epigenomics CEO Greg Hamilton said in a statement. "In 2018, we expect to reach significant milestones with regard to Medicare payment and coverage for Epi proColon."
Looking ahead, Epigenomics said that it expects 2018 revenues of €2.0 million to €4.0 million, noting that its projections mainly depend on the commercialization of Epi proColon in the US, which in turn depends on securing reimbursement for Epi proColon from public and private insurers.