OncoMethylome Sciences Reports 2010 Half-Year Results and Announces New Strategy

DURHAM, NC, and LIEGE, BELGIUM - August 26, 2010 - OncoMethylome Sciences
(Euronext Brussels: ONCOB, Euronext Amsterdam: ONCOA), a leading molecular
diagnostics company, announced today its 2010 half-year results and its new
strategy.
 
Highlights
 
-    Strategic/Commercial
         o   Cervical cancer triage test partnered with Self-Screen BV
         o    Initiated Roche (Avastin)  trial to use  MGMT testing services for
brain cancer
         o    Stool-based  colorectal  cancer  biomarkers  partnered  with Exact
Sciences (July)
-    Financial
         o   Net cash flows improved by 48% from H1 2009
         o   Net result and EPS improved by 21% from H1 2009
         o   Commercial revenues improved by 55% from H1 2009
-    Corporate
         o   New CEO
         o   Strengthened Board of Directors
-    Operational
         o   Consolidated lab operations
         o   Obtained ISO certification for the company's commercial lab
 
"Our  commercial, financial and operational results  for the first half of 2010
are much improved compared to the same period in 2009, and we expect results for
the  second half of  2010 to follow the  same path," said  Dr. Jan Groen, CEO of
OncoMethylome Sciences.
 
"Furthermore,"  continued Dr.  Groen, "since  I joined OncoMethylome, management
has worked very closely with the Board of Directors to define a sustainable path
of  accelerated growth and, capitalizing on our unique DNA methylation platform,
positioning OncoMethylome as a leader in the rapidly growing market of molecular
diagnostics.  The cornerstone  of our  new strategy  will be the development and
commercialization  of high-value predictive  and prognostic laboratory developed
tests  - a step that will move OncoMethylome away from its historical, long-term
focus  on basic research for cancer  screening applications and out-licensing of
biomarkers   to   third   parties   for   eventual   product   development   and
commercialization.  The aim of this new strategy  is to forge a company that can
determine  its  own  fate,  is  less  dependent  on  priorities and timelines of
licensing  partners, and operates in a space  with high-end products in terms of
pricing  and reimbursement. First and foremost, it  is our goal to reap the full
benefits  of our proprietary DNA  methylation platform by developing stand-alone
 molecular diagnostic products for rapid commercialization.
 
Management  and the Board of Directors believe  that the new business model will
improve  cash flows,  while allowing  the company  to out-license  the validated
biomarkers  related to screening programs. Management and Board of Directors are
confident  that the new course they are plotting for OncoMethylome should create
improved shareholder value in the short, medium and long-term."
 
Strategic/Commercial Deals
 
  * Cervical cancer
 
      OncoMethylome  and its new partner, SelfScreen BV are developing a test to
identify/triage those HPV-positive women that really have cancer and thus need a
follow-up  examination with a  gynaecologist.  Many women  screened for cervical
cancer  are found to have the HPV virus,  but few of them actually have cervical
cancer.  The partners are seeking a worldwide licensing partner to commercialize
the test.
 
* F. Hoffmann-La Roche Ltd.,  --  Avastin in brain cancer
 
      OncoMethylome  has  entered  into  an  agreement  with Roche for MGMT gene
promoter  methylation  testing  in  a  Phase  III  clinical trial for the use of
Avastin in newly diagnosed glioblastoma (GBM) brain tumors. OncoMethylome's MGMT
assay  helps to predict those brain cancer patients that will respond to therapy
and  so is  useful in  patient stratification  in the  clinical trial. Following
treatment,  GBM  patients  whose  tumors  are  positive  for  MGMT gene promoter
methylation  have demonstrated  improved overall  survival compared  to patients
with  unmethylated or normally functioning MGMT.   This new trial expands on the
numerous  other  trials  of  other  pharmaceutical  companies  that  already use
OncoMethylome's proprietary MGMT methylation test.
 
* Stool-based Colorectal cancer screening biomarkers
 
      OncoMethylome  has partnered its  stool-based colorectal cancer biomarkers
with  Exact  Sciences  Corporation.   Exact  Sciences is developing a colorectal
cancer  test and has announced an intention to seek FDA approval for the test in
2012 and to commercialize it as an IVD kit.
 
Financial Highlights
 
Key Figures (EUR thousands, except number of shares and per share data):
 
+-------------------------------------------+---------------+---------------+
|                                           | June 30, 2010 | June 30, 2009 |
+-------------------------------------------+---------------+---------------+
| Revenues                                  | 1,258         | 1,268         |
+-------------------------------------------+---------------+---------------+
| Operating loss (EBIT)                     | -5,152        | -6,529        |
+-------------------------------------------+---------------+---------------+
| Net loss                                  | -4,996        | -6,340        |
+-------------------------------------------+---------------+---------------+
| Earnings per share, basic and diluted (¤) | -0.38         | -0.48         |
+-------------------------------------------+---------------+---------------+
| Number of outstanding shares              | 13,185,614    | 13,185,614    |
+-------------------------------------------+---------------+---------------+
| Cash and cash equivalents                 | 14,437        | 23,745        |
+-------------------------------------------+---------------+---------------+
 
Revenues
Total  revenues remained stable at EUR 1.3 million.  The commercial revenues, as
a  component of total  revenues, increased by  55% due to higher testing volume.
Grant  revenues decreased by  31% due to the  company's focus on development and
commercialization efforts rather than on subsidized basic research projects.
 
Costs and Profitability
Total research and development expenses for the first half of 2010 were EUR 4.4
million  compared with  EUR 5.6 million  for the  first half  of 2009. This 22%
decrease  resulted from a reduction in both internal and external R&D expenses.
As  part of the optimization  efforts commenced at the  end of 2009, the company
spent  less  in  2010 on  basic  research  projects  with  external  parties and
internally the company consolidated its R&D facilities.
 
Selling, general and administrative expenses decreased by 7% to EUR 2 million in
the first half of 2010 from EUR 2.1 million in H1 2009.
 
The  decrease in  R&D and  SG&A expenses  achieved in  H1 2010 allowed the total
operating  costs  to  decrease  by  19% compared  to  the same period in 2009.
Excluding  one-time restructuring charges, the  adjusted total operating charges
therefore reflect a decrease of 24% compared to H1 2009.
 
Cash Position
OncoMethylome's  cash and cash equivalents amounted  to EUR 14.4 million at June
30, 2010. Total net cash consumed in the first 6 months of 2010 decreased to EUR
3.6 million  compared to a total net cash  consumption of EUR 6.9 million in the
same  period  of  2009.  This  48% improvement  in  cash  flow was the result of
efforts  launched at  the end  of 2009 to  reduce the  cash burn,  to accelerate
collection of receivables, and from the sale of some financial assets.
 
Management and Board Highlights
 
* In April, the Board of Directors appointed Dr. Jan Groen as CEO. Dr. Groen
    has more than 25 years of experience in the clinical diagnostic industry,
    with a focus on emerging technologies, product development and
    commercialization. He was previously the president of Agendia Inc. and COO
    of Agendia B.V., and was responsible for their U.S. and European diagnostic
    operations.  Prior to this he was vice president of research and development
    at Focus Diagnostics Inc., a subsidiary of Quest Diagnostics, in California.
    He has held numerous management and scientific positions at ViroClinics
    B.V., the Erasmus Medical Center, and Akzo-Nobel. Dr. Groen is a supervisory
    board member of IBL International B.V.
 
* On May 28, 2010, Ms. Hilde Windels, Mr. Edward L. Erickson, and Mr. Mark
    Myslinski were elected to the Board of Directors, adding three seasoned
    industry professionals to the Board.
 
* Recently OncoMethylome's Board of Directors elected Mr. Edward L. Erickson
    as Chairman of the company.  He has served as President, CEO and Director of
    a number of US life sciences companies.
 
* Effective August 25, 2010, Mr. Alain Parthoens has stepped down from the
    board to focus on his venture capital activities. The company thanks Mr.
    Parthoens for his valuable contribution to the company and to the Board.
 
Operational Highlights
 
* OncoMethylome is in the process of consolidating all European activities in
    Belgium and thus will close its Netherlands facility by the end of 2010.
 
* OncoMethylome obtained ISO certification for its Liege based laboratory.
    This facility is the main research and development facility and commercial
    testing lab of the company and also provides clinical testing services for
    its pharmaceutical partners.
 
* An assessment of the ongoing validation studies of the company's colorectal
    cancer (CRC) blood-based screening program has demonstrated comparable
    performance to a competing test already on the market. While CRC will
    constitute one of the important areas of OncoMethylome's new strategy, this
    blood-based screening test and its associated biomarkers are no longer a
    strategic fit. Therefore the company will out-license these biomarkers as
    soon as practical.
 
Outlook for H2 2010
 
For the full year 2010 OncoMethylome expects:
    ·      Revenues  to  remain  stable  compared  to  2009, with an increase in
commercial revenues off-setting the decrease in grant revenues.
    ·      Total operating costs are expected to decrease by 20%, although these
may  be impacted by one-time charges in connection with the consolidation of our
facilities and related operations.
    ·     The net result is expected to improve by more than 20%.
 
The  company intends to announce  its new strategy in  more detail in 4-6 weeks.
Furthermore, in line with the company's transition from a basic research company
to a commercial clinical diagnostic entity, the company intends to propose a new
corporate   name  to  its  shareholders  that  better  captures  its  commercial
ambitions.  As  a  consequence,  the  company  plans to convene an extraordinary
shareholders' meeting.
 
Statutory Auditor's Limited Review Report
 
"We  have reviewed the accompanying consolidated statement of financial position
of  OncoMethylome Sciences S.A. and its subsidiaries, as of 30 June 2010 and the
related  consolidated  income  statement,  statement  of  comprehensive  income,
changes in equity and cash flows for the six month period then ended, as well as
the  condensed explanatory notes. The board  of directors is responsible for the
preparation  and presentation  of this  condensed consolidated interim financial
information  in accordance  with IAS  34 as adopted  by the  European Union. Our
responsibility is to express a conclusion on this condensed consolidated interim
financial information based on our review.
 
We  conducted our  review in  accordance with  the recommendation of the Belgian
Institute   of   Company   Auditors  related  to  the  performance  of  reviews.
Accordingly,  it involved principally analysis, comparison and discussion of the
condensed  consolidated interim financial information and, accordingly, was less
extensive in scope than an audit of that information.
 
Our  review did  not reveal  any matters  requiring correction  of the condensed
consolidated  interim financial information for it to have been prepared, in all
material respects, in accordance with IAS 34 as adopted by the European Union."
 
Zaventem - August 25, 2010
The Statutory Auditor
BDO Atrio Réviseurs d'Entreprises Soc. Civ. SCRL
Represented by Bert Kegels
 
Complete Financial Statements:
 
To        download        the       2010 interim       report,       go       to
http://www.oncomethylome.com/investors/documents
 
About OncoMethylome Sciences
OncoMethylome   Sciences   is  a  leading  molecular  diagnostics  company  that
commercializes  and develops cancer tests  to assist physicians in personalizing
cancer  treatment. The company's tests are  based on proprietary DNA methylation
technology  invented at  Johns Hopkins  University and  are designed to help the
physician accurately identify cancer and its aggressiveness, predict a patient's
response  to  drug  therapy,  and  predict  the likelihood of cancer recurrence.
OncoMethylome  Sciences collaborates with leading  cancer research centers, such
as  Johns  Hopkins,  in  Baltimore,  MD,  and  has  a  number  of commercial and
collaborative   partnerships   with  LabCorp,  Schering-Plough,  GlaxoSmithKline
Biologicals,  F. Hoffmann-La Roche, Merck Serono and Qiagen.
 
For more information:
Dr. Jan Groen
CEO
Telephone (+32) 4.364.20.70
 
This press release contains forward-looking statements and estimates with
respect to the anticipated future performance of OncoMethylome and the market in
which it operates. Such statements and estimates are based on assumptions and
assessments of known and unknown risks, uncertainties and other factors, which
were deemed reasonable but may not prove to be correct. Actual events are
difficult to predict, may depend upon factors that are beyond the Company's
control, and may turn out to be materially different.  OncoMethylome expressly
disclaims any obligation to update any such forward-looking statements in this
release to reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based unless required by law or regulation.
 
[HUG#1440347]
 
2010-8-26 Half year results: 
http://hugin.info/137314/R/1440347/384731.pdf
 
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