Epistem Holdings issues upbeat trading statement for FY

Stem-cell biotechnology company Epistem Holdings PLC (LON:EHP) said trading over the year to end-June 2010 was in line with market forecasts and the it expects to report a growth in after tax profit from a year earlier.
In a pre-close trading statement, Epistem said sales in all of its business divisions have made strong progress in the period.
It expects to release its final results for the year on October 5 2010.

Epistem specialises in epithelial stem cells in the areas of oncology, gastrointestinal and dermatological diseases. Epistem develops innovative therapeutics, biomarkers and diagnostics alongside providing contract research services to drug development companies.

The group's core expertise is focused on the regulation of adult stem cells located in epithelial tissue, which includes the gastrointestinal tract, skin, hair follicles, breast and prostate. Epistem does not conduct research in the areas of embryonic stem cells or stem cell transplantation.
At the interim stage, Epistem revealed the commercial progress being made through its partnership with Novartis as it reported, in March, a 90% year-on-year increase in revenue during the six months ended 31 December 2009. Revenue in the first half saw rose to £2.8m compared with £1.5m in the same period a year earlier.

Epistem broke even in the first half, compared to a £500,000 loss previously, furthermore the company said it anticipates further revenue growth over the second half, to provide an improved financial profile.