Epistem mulls acquisitions as sales jump

BIOTECHNOLOGY firm Epistem is considering buying some of its rivals after witnessing its turnover leap by 90% to £2.76m in the six months to the end of 2009.

Based on Grafton Street in Manchester city centre, Epistem’s technology enables drug development companies to test whether patients are responding to cancer drugs non-invasively by testing a hair sample or a skin cell.

The company’s interim report shows that it had sales of £2.76m up from £1.45m in the same period in 2008.

Epistem also made a profit of £5,000 compared with a loss of £520,000 last time.

It attributes its success to its Novel Therapies division which entered into a collaboration with Novartis AG in March last year.

The company has also reported that it has a strong cash position with net funds of £5.5m – up from £1.2m last time.

Chief executive Matthew Walls said: “Our Novel Therapies division reported revenues of £1.3m with good progress in the discovery and development of our therapeutic targets and leads in collaboration with Novartis.

“At the first anniversary of the collaboration, we are pleased with progress towards advancing our first therapeutic leads.

“Revenue growth was primarily driven by the Novartis collaboration which dominates the work undertaken within the Novel Therapies division.

“Demand for our contract research services and Biomarker businesses remained steady over the first half with revenues marginally increased over the period.

“Business revenues are anticipated to strengthen over the second half.

“Against a backdrop of uncertain market conditions, the directors consider the group’s growing revenues, bolstered by significant cash reserves, maintain the business’s strong position and rating in the sector, leaving the company well-placed to take advantage of acquisition opportunities which may present themselves.”