Epigenomics reported Q1/2019 sales of €331k (7% YoY), driven largely by a 198% YoY increase in product revenue, which was in part offset by lower licensing revenue due to the recently announced termination of the collaboration with Chinese licensing partner BioChain. We expect solid underlying growth momentum to continue throughout 2019, with back-end loaded revenue generation in Q3 and Q4 fuelled by a number of commercial as well as regulatory catalysts that can unlock significant sales potential for Epi proColon as well as support the commercialisation of HCCBloodTest, the latest addition to Epigenomic's growing portfolio of liquid biopsy tests, which allows for blood-based detection of liver cancer. We continue to see the positive commercial outlook of Epigenomic's liquid biopsy tests due to a differentiated profile, fast readouts, large target markets and a significant health-economic impact. We maintain and reiterate both our OUTPERFORM recommendation and €4.01 target price (“TP”).
