LONDON (Alliance News) - Epistem Holdings PLC Tuesday posted a widened pretax loss as it saw revenue decline in the half-year ended December 31, 2013, and it upped its investment in the development of its Genedrive product.
Genedrive is a molecular diagnostic technology.
Epistem posted a pretax loss of GBP730,000, widened from a pretax loss of GBP329,000 in the previous year, as revenue declined to GBP2.5 million from GBP2.8 million, as growth in its Preclinical Research Services segment was offset by declines in its Personalise Medicine segment.
The company posted higher discovery and development costs of GBP716,000, up from GBP400,000 in the previous year, as it upped investment in its Genedrive technology.
In the company's Preclinical Research Services division, revenue was GBP1.6 million, up from GBP1.3 million, boosted by its bio-defence contract with the US government. Personalised Medicine revenues declined to GBP1.3 million from GBP1.8 million as it saw reduced revenue from its US department of defence pathogen detection contract for Genedrive.
Epistem said that, following the termination last September of its supply and distribution agreement with Becton Dickinson, it had made progress towards finalising its Genedrive unit to move its initial tuberculosis product from development into manufacture.
It is finalising preparations to scale up the Genedrive platform for the diagnosis of tuberculosis, said the firm and expects to complete in-house clinical testing to enter into the Indian tuberculosis regulatory process in April, as it continues to plan for a market launch of the test in the second-half of 2014.
The company said it is in discussions with prospective distribution partners regarding tests from its wider infectious disease and pharmacogenomic portfolios outside of Genedrive.
The company said its outlook for the second-half of the year was focused on regulatory approval for its first Tuberculosis assay, preparation for the launch of Genedrive later in the year and the broadening of its offering of new assays in clinical and non-clinical fields.
Epistem expects continue revenue growth in its Preclinical Research Services and the Personalised Medicine Pharmacogenomics business business to offset increased investment in its Personalised Medicine Diagnostics business.
Shares in Epistem were trading down 1.1% at 321.50 pence Tuesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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