Epigenomics AG (Frankfurt, Germany) reported its financial results for the fiscal year ending December 31, 2009. The complete annual report will be released, as planned, on March 31, 2010.

In 2009, Epigenomics recognized total revenue of EUR 4.3 million, a significant increase of 65% compared to EUR 2.6 million in 2008. This strong improvement is mainly due to progress made in the company’s collaboration with Abbott, which also resulted in revenue recognition of certain milestone payments and revenue recognized for certain aspects related to the PRESEPT Study as well as to revenue recognition under the collaboration agreements with Philips and Sysmex and the licensing agreements with Quest, ARUP, OncoMethylome Sciences and Qiagen/DxS.

Cost of sales increased significantly as expected by 65% from EUR 1.7 million to EUR 2.8 million as a result of increased collaboration-driven product development expenses and especially due to the acquisition of clinical samples under Epigenomics’ collaboration with Abbott.

Other income decreased to EUR 0.5 million in 2009 from EUR 1.1 million in 2008, when high income from a one-time reversal of provisions affected the total number in profit or loss.

In 2009, R&D costs decreased significantly by approximately EUR 2.7 million from EUR 10.0 million in 2008 to EUR 7.3 million at the end of 2009. This significant drop by 27% is mainly due to increased resource allocation to the company’s commercial collaboration projects and a corresponding shift of such partnered R&D activities to “cost of sales” as well as from the closing of all laboratory operations at Epigenomics Inc. in Seattle only at the end of the second quarter of 2008 with corresponding full-year effects in 2009.

Marketing and business development costs significantly increased by 39% from EUR 0.9 million in 2008 to EUR 1.2 million in 2009, as a result of increased pre-marketing, sales and technical support activities for the launch of Epigenomics’ Epi proColon colorectal cancer blood test. General and administrative costs decreased from EUR 3.4 million in 2008 to EUR 3.3 million at the end of 2009, mainly due to decreased staff costs. Other expenses amounted to EUR 0.4 Mio (2008: EUR 0.4 Mio).