Liege (Belgium) - March 13, 2008, 8:00 CET - OncoMethylome Sciences published its financial results today for the period ended December 31, 2007.
Consistent with the revenue guidance provided during the publication of the half-year results, revenues in 2007 of EUR 2.641 million remained comparable to the EUR 2.771 million of 2006. Consistent with 2006, in 2007 the majority of revenues consisted of R&D grants and revenues from Schering-Plough and Veridex LLC.
Costs and Profitability The broadening of the Company’s product development pipeline required an expansion of the R&D activities which was initiated in the second half of 2006 and completed in 2007. In addition, the number and breadth of the clinical trials on various products was increased. As a consequence, the R&D costs increased by 24% to EUR 10.7 million, and continue to represent 81-82% of all operating costs.
Cash Position OncoMethylome’s cash and cash equivalents amounted to EUR 33.1 million at December 31, 2007, which is comparable to the balance of EUR 32.8 million at December 31, 2006. The cash used in Operations was offset in 2007 by a private placement to institutional and qualified investors which generated EUR 10.1 million in net proceeds.
Outlook for 2008
Additional deals are expected in 2008, mainly commercial deals with US service laboratories and companion diagnostics collaborations with pharmaceutical companies. The American Cancer Society’s recent inclusion of stool-based DNA testing in the medical guidelines for colorectal cancer screening should continue to increase awareness for stool-based DNA colorectal cancer screening. OncoMethylome plans to build on this momentum and close a deal with a US service laboratory for distribution in the US and will develop a plan for launching stool-based colorectal cancer screening services in Europe. OncoMethylome expects its tissue test for prostate cancer and the MGMT alkylating agent companion diagnostic to be launched in the US in 2008. In Europe, at least two CE-marked test kits will be developed. Total revenues should increase faster than costs in 2008, but the amounts and timing of revenues will remain irregular as they will still be dominated by one-time fees and milestone fees. “In 2007, OncoMethylome achieved all of its clinical development goals, especially for colon cancer screening tests and bladder cancer screening tests, and is now in discussions with potential commercial partners for the commercialization of those products. In the area of personalized treatment, our existing relationship with Schering-Plough was expanded with additional clinical trials, and we brought onboard many new pharmaceutical industry partners such as GlaxoSmithKline Biologicals and Abbott. In 2008, we look forward to the commercial launch of several of our products” commented Herman Spolders, CEO of OncoMethylome Sciences.
Comments of the Auditor The financial information included in this press release is derived from the audited consolidated financial statements under IFRS. OncoMethylome’s auditors, BDO Atrio Réviseurs d’Entreprises, will issue an unqualified audit opinion.
Complete financial statements To download the complete audited financial statements of 2007, click here: ONCO 2007 Financial Statement PDF.
Information for shareholders The 2007 Annual Report will be available for downloading in the investors section of www.oncomethylome.com website at the end of April 2008. Requests for printed copies can be emailed to ir@oncomethylome.com.
Conference call and webcast presentation: today at 9.30 CET OncoMethylome Sciences will host a conference call today at 9.30 CET, which will also be simultaneously broadcast via the internet. The event is open to the public and is accessible via internet broadcast at www.oncomethylome.com and via telephone at +32 2 290 1401. In order to ask questions during the Q&A session, please join the event via telephone. A recording of the event will also be made available at www.oncomethylome.com after the call.
OncoMethylome Reporting Calendar May 8, 2008 - Q1 business update May 30, 2008 - General shareholders’ meeting August 28, 2008 - Half year 2008 results November 6, 2008 - Q3 business update March 12, 2009 - Full year 2008 results
About OncoMethylome Sciences OncoMethylome Sciences (Euronext Brussels: ONCOB; Euronext Amsterdam: ONCOA) is a molecular diagnostics company developing gene methylation tests to assist physicians in effectively detecting and treating cancer. Specifically, the company’s tests are designed to help the physician (i) accurately detect cancer in early stages of cancer development, (ii) predict a patient’s response to drug therapy, and (iii) predict the likelihood of cancer recurrence.
OncoMethylome boasts a broad product development pipeline consisting of ten products and a solid partnering record. The company collaborates with leading international molecular oncology research centers, such as The Johns Hopkins University, and has a number of commercial and collaborative partnerships with Veridex LLC, a Johnson & Johnson company, Schering-Plough Corp., GlaxoSmithKline Biologicals, Abbott, Millipore Corporation’s BioScience Division, and EXACT Sciences Corp. OncoMethylome’s products are based on methylation technology invented by Johns Hopkins University (USA).
Established in January 2003, OncoMethylome has offices in Liege and Leuven (Belgium), in Durham, NC (USA), and in Amsterdam (the Netherlands).
For more information please contact: Lucija Turcinov Tel. +32-479-801-902 Lucija.Turcinov@oncomethylome.com or visit www.oncomethylome.com
