Epigenomics AG publishes financial results for fiscal year 2022

Berlin (Germany) and San Diego, CA (U.S.A.), April 28, 2023 - Epigenomics AG (FSE: ECX, the "Company") today reported financial results (according to IFRS) for fiscal year 2022.

FINANCIAL RESULTS 2022

• Revenues decreased to EUR 0.5 million in fiscal year 2022, compared to EUR 6.2 million in the previous year. The prior year included revenues from the sale of samples from the Company's blood sample database (the "Biobank") in the amount of EUR 5.7 million.
• Research and development costs in 2022 increased from EUR 3.1 million in the previous year to EUR 6.7 million, mainly due to the discontinuation of pandemic-related short-time work, the initiation of the pre-clinical study on Epi proColon "Next-Gen" as well as the new employees hired in the U.S.A. to conduct the study.
• Selling, general and administrative costs amounted to EUR 6.6 million (2021: EUR 7.5 million). In the previous year, costs were still incurred in connection with the biobank sale.
• Other income of EUR 1.9 million (2021: EUR 3.2 million) was largely to exchange rate volatility in the EUR/USD pair. Therefore, a total of EUR 1.8 million arose from exchange rate gains (2021: EUR 2.8 million).
• EBITDA (before share-based payment expenses) was EUR -11.3 million in the reporting period and was thus significantly better than assumed at the beginning of 2022. The forecast for adjusted EBITDA was within a range of EUR -15.0 million to EUR -17.0 million at the beginning of the year and was adjusted to EUR -11.0 million to EUR -11.6 million subsequently. As in the case of revenue, the significant difference compared to the previous year is attributable to the sale of samples from the biobank in 2021.
• Accordingly, the net loss also increased to EUR -12.0 million (2021: EUR -2.4 million); the loss per share increased from EUR -0.87 to EUR -2.96 compared to the previous year.
• Cash consumption increased to EUR 13.7 million in 2022, compared with EUR 4.2 million in the previous year.
• As of December 31, 2022, the Company had cash and cash equivalents of EUR 10.1 million (December 31, 2021: EUR 23.0 million).

OPERATIONAL DEVELOPMENTS

• Despite very convincing preclinical data of the Epi proColon "Next-Gen" test for the detection of colorectal cancer (CRC) - 84% sensitivity and 90% specificity would have enabled Medicare reimbursement after FDA approval - Epigenomics has not been able to secure the necessary funding for the further development of the test. Facing a significant deterioration in the conditions for venture capital in the financial markets, the Company has initiated extensive restructuring measures in February 2023 to reduce cash consumption.
• In this regard, among others, the FDA pivotal clinical study CRC-Draw, which was initiated in September 2022, was placed on hold, the American Depository Receipts program was terminated and the sale of Epi proColon was discontinued. Furthermore, the revocation of the admission of Epigenomics AG's shares to the Prime Standard was applied for, effective as of June 9, 2023. Trading of the shares in the General Standard is expected to start on June 12, 2023. No restrictions on the trading of Epigenomics AG shares are expected.
• Effective March 31, 2023, the Chairman of the Supervisory Board, Heino von Prondzynski, resigned his mandate for health reasons and left the Supervisory Board on that date. Dr. Helge Lubenow was elected by the Supervisory Board as its new Chairwoman.
• In addition, Epigenomics AG's CEO Greg Hamilton and the Company's Supervisory Board have reached an agreement on his resignation from the Company and the Executive Board effective June 30, 2023. Until then, Greg Hamilton will manage the restructuring measures, potential out-licensing and potential sales of patents and biobanks in coordination with the Supervisory Board.
• Based on the measures taken, Epigenomics AG expects that the available financial resources will be sufficient until the first half of 2025. This assessment is based on current forecasts and the success of the action taken is subject to uncertainties so that actual results could differ materially from these assumptions and may constitute a going concern risk.

Greg Hamilton, CEO of Epigenomics AG: "The future success of the Company will depend on our ability to create value for shareholders by out-licensing "Next-Gen" or by selling patents and biobanks. We recognize the difficult financial situation of the Company and the impact of the restructuring on our employees, customers, and investors. We will look to maximize the opportunities in front of us with the limited resources currently available."

OUTLOOK 2023

EBITDA / cash consumption

• For EBIT as well as EBITDA before share-based payment expenses, Epigenomics forecasts a range of EUR -7.0 million to EUR -9.0 million for the current full year 2023. Based on the Company's 2023 business plan, cash consumption is expected to be in line with the EBITDA guidance between EUR -7.0 million and EUR -9.0 million.

More information

The Annual Report 2022 is available on the Epigenomics' website at:
https://www.epigenomics.com/news-investors/financial-reports/.

About Epigenomics

Epigenomics AG is a molecular diagnostics company focused on blood testing for the early detection of cancer. Based on its proprietary biomarker technology for the detection of methylated DNA, Epigenomics developed blood tests for various cancer indications with high unmet medical need.

For further information please visit www.epigenomics.com.

Contact:

Company

Epigenomics AG, Geneststrasse 5, 10829 Berlin

Tel +49 (0) 30 24345 0, Fax +49 (0) 30 24345 555, Email: contact@epigenomics.com

Investor Relations

IR.on AG, Frederic Hilke, Tel +49 221 9140 970, Email: ir@epigenomics.com

Note on forward-looking statements

This publication expressly or implicitly contains forward-looking statements concerning Epigenomics AG and its business. These statements involve certain known and unknown risks, uncertainties and other factors that may cause Epigenomics AG's actual results, financial condition and performance to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Epigenomics makes this announcement as of the date of this release and does not intend to update any forward-looking statements contained herein as a result of new information or future events or otherwise.