LONDON (Alliance News) - Epistem Holdings PLC said Thursday it remains focused on getting Indian regulatory approval for its first tuberculosis test and preparing for the launch of its molecular diagnostic device Genedrive, as lower revenue and increased investment in the device led it to post a widened pretax loss for its first half.
Epistem posted a pretax loss of GBP2.2 million in the half year to end-December, widened from a pretax loss of GBP730,000 a year before, as revenue declined to GBP2.2 million from GBP2.8 million, and discovery and development costs rose as the company increased investment and headcount for Genedrive.
In its preclinical research services, revenue was reduced to GBP1.0 million from GBP1.6 million, caused by a weak performance in its European business. Epistem is reorganising its business development team, and expects revenues to recover in the second half, taking the division to breakeven for the full year.
Personalised medicine revenue was broadly flat at GBP1.2 million compared to GBP1.3 million.
Epistem said that whilst it had been disappointed by revenue in its core businesses in the first half, it is encouraged by the progress of Genedrive, especially its programmes for tuberculosis and hepatitis C.
Due to delays in the Indian regulatory approval process, Epistem is restricting its initial product revenue expectations from the tuberculosis assay to around GBP5.0 million in the current year.
Discussions with the Indian regulator are well advanced, Epistem said.
Shares in Epistem are trading down 5.3% at 230.60 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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