First Berlin – Epigenomics AG Research Update (16/04/2018)

First Berlin Equity Research has published a research update on Epigenomics AG (ISIN: DE000A11QW50). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 7.30 to EUR 7.10.

The Epigenomics share price is currently experiencing a renewed bout of weakness caused in part by overall market jitters but also by uncertainty surrounding reimbursement of Epi proColon. Management stated in late 2017 that its best estimate with regard to increased clarity on reimbursement coverage for Epi proColon was by year-end or early 2018. We believe that this statement was based on the expectation of near-term inclusion of Epi proColon in the guidelines of one of the cancer screening guideline issuing societies. We gather that there is currently a lively debate within the guideline issuing societies as to whether the recommended age from which regular colorectal cancer screening takes place should be lowered from 50 years to 45 years. This may account for the delay. We believe that clarity on reimbursement of Epi proColon will be forthcoming by the end of June. We maintain our Buy recommendation but lower the price target to €7.10 (previously: €7.30) to reflect a move in the EURUSD exchange rate underlying our model from 1.10 to 1.20.