ONCOMETHYLOME 2008 RESULTS: Meuse-Rhine Journal

ONCOMETHYLOME 2008 RESULTS

[BIZ: Ličge, March 16]

2008 operational highlights:

• Net results significantly better than analyst/market expectations.
• Increased revenues by 15% as a result of new products and new collaborations with
pharmaceutical companies.
• Operating cash burn reduced by 18%.
• Ended the year with over EUR 30m in cash and no financial debt.
• 3 products incorporating OncoMethylome's technology were commercially launched on the market in North America and started to generate revenues for the company:
• GSTPi-APC Promoter Methylation test, to improve early detection of prostate cancer
• MGMT Methylation test, for personalized treatment of advanced brain cancer patients
• ColoSure, for colorectal cancer screening.
• Published in New England Journal of Medicine results of a new promising test capable of predicting cancer recurrence in early-stage lung cancer patients. There is a large unmet medical need to better treat these patients.
• Published results of on-going clinical trials for the company's urine-based test for early detection of bladder cancer. The sensitivity/specificity of over 90% is higher than any other non-invasive test on the market.
• Enrolled 2,000 additional patients in the company's clinical trials for stool and blood-based colorectal cancer tests.
• Continued to make excellent progress with all the other products in the development pipeline (prostate cancer urine test, cervical cancer test, lung cancer test, and a breast cancer test) and with the various on-going pharmacogenomic partnerships (such as GlaxoSmithKline Biologicals, Abbott, and Schering-Plough) to identify methylation biomarkers that can predict a patient's response to therapy.
• Signed new commercial deals with Qiagen NV and Laboratory Corporation of America (LabCorp) for various technologies and products.
• Signed new collaboration agreements with various pharmaceutical companies, such as with Merck KGaA to develop OncoMethylome's MGMT Methylation assay as a companion diagnostic for their new oncology drug.
• Raised over EUR 8m in equity funding with new international institutional investors.

2008 financial highlights

Key Figures (EUR thousands, except number of shares and per share data):

As at or for the year ended Dec. 31 2008 2007
Revenues 3,024 2,641
Operating profit (EBIT) -11,326 -10,971
Net loss -10,192 -9,975
Earnings per share, basic (€) -0.77 -0.85
Number of outstanding shares 13,161,074 11,747,702
Cash and cash equivalents 30,601 33,103

Revenues
Total revenues in 2008 increased by 15% to EUR 3.0 due to the new products and to expanded collaborations with pharmaceutical companies. The grant-related revenue decreased slightly in 2008 due to the scheduled end of certain projects in 2008.

Costs and Profitability
Despite an expansion in clinical trials and other R&D activities, the R&D costs increased by only 3% in 2008 due to cost-control efforts made by the company. SG&A costs increased by a greater amount in 2008 due to the continued expansion of the company's commercial deals and efforts.

Cash Position
OncoMethylome's cash and cash equivalents amounted to EUR 30.6m at December 31, 2008. Operating cash burn was reduced by 18% in 2008. The cash balance at year-end 2008 represents more than 3 times the cash used by the operations of the company in 2008. OncoMethylome raised net proceeds of EUR 8.2m in 2008 via the issuance of new shares in December 2008.

http://www.oncomethylome.com/