Epigenomics considers US listing

In mid-August, the diagnostics specialist Epigenomics used its presentation of the half-year results to report on its course of action for further financing of the company. The draft of the registration document based on the form F-1 for a potential public offering of American Depositary Shares (ADSs) on the NASDAQ stock exchange was submitted confidentially to the SEC. If, and when an offer will be made, has not yet been decided. 

A landmark decision, however, is expected to be made in the foreseeable future. As can be seen from the half-year figures, Epigenomics currently has around €13.2m in the bank. That’s enough to secure the financing of operations until well into 2017 the company said. After receiving FDA approval for the colorectal cancer test Epi procolon, revenues of the Berlin-based company rose in the first six months of 2016 by 82 % to €1.6m. All in all, the company has not made a profit. Due to higher expenses in sales in particular, the net loss could increase by about 36% to €7.6m within the same period. Epigenomics expects a turnover of €3m to €7m for the whole year.

Because of the additional consulting costs for a possible secondary listing in the US, the company will probably expand its EBITDA deficit more than originally expected. Over the year, Epigenomics now expects its EBITDA to be in the range of -€9.5m to -€11.5 million euros instead of the current range of -€8.5m to -€10.5m.

A report published earlier this year by BIOCOM AG, shows that the US stock market is an attractive option for European companies. According to the study, four public European companies traded on NASDAQ in 2015. In 2015, a total of 19 European biotech companies were listed in the US. And even though they make up only 13% of all listed European biotech companies, they were able to raise one third of the total capital (€1.6m) through follow-on financings. A total of seven companies from Europe have secondary listings in the US.

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