The catastrophic US news from Epigenomics, which was published on Saturday night, left its mark on the share price of the Berlin biotech company this morning. The share price is currently at EUR 0.578 with more than 76 percent (!) In the red, the daily low is listed at EUR 0.49. The reason in brief: After the current developments, Epigenomics has little chance of successfully launching its blood-based bowel cancer test in the USA. In addition – but this is not new – the money is slowly but surely running out. We reported in detail on this on Saturday. Here is the report again:
Epigenomics: Catastrophic US News for Epi proColon
Epigenomics shocks investors with bad news from the USA: According to the Berlin company, the US state health insurance Centers for Medicare & Medicaid Services (CMS) made a negative reimbursement proposal in connection with the National Coverage Determination of colorectal cancer on Saturday night. Blood tests Epi proColon published.
This proposal is still preliminary, according to Epigenomics. At the CMS one does not seem to see any added value in the test of Epigenomics compared to colorectal cancer test methods used to date.
In Berlin they seem to have been caught off guard: “The reaction of the public during the first public comment phase at the beginning of the NCD was overwhelmingly positive,” said Epigenomics in contrast to the CMS assessment. During the upcoming 30-day comment phase, they will try to convince the CMS of Epi proColon again. A final decision by CMS is then due within 60 days. If the US state health insurance company remains with its negative recommendation, Epigenomics will challenge this through an appeal process.
The Epigenomics share ended trading on Friday at EUR 2.41 on Tradegate, but according to the US news, investors should expect a turbulent course of trading on Monday. After the – still provisional – CMS decision, it is more uncertain than ever whether the colon cancer blood test from Epigenomics will be able to establish itself on the US market. In addition, the financial pressure on Epigenomics is growing: According to the latest information from August, they are enough Berlin’s financial resources only until the first quarter of 2021. That would be dependent on investors.
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At a glance – chart and news: Epigenomics