Epichem scales back revenue projections

PharmAust subsidiary Epichem has significantly revised its forecast revenue following the announcement one of its major customers would end its contract with the company next month.

The contract, which was with US-based Unity Biotechnology and was the second largest for Epichem, was framed by Epichem chief executive Colin La Galia as having reached its natural conclusion, with an accompanying announcement attributing the matter to funding issues at Unity.

In its 2019 annual report, PharmAust had projected an increase in revenues for Epichem from $3.8 million to $4.2 million, subject to continuation of its contracts.

That figure has been revised to $3.3 million given the contract with Epichem is coming to an end.

Share prices for PharmAust declined on the back of the news, having opened at $0.10 a share and now fallen to $0.09 a share.

Despite the setback, PharmAust executive chair Roger Aston said it would continue to support Epichem, evident both in the recent expansion of two laboratories and Mr La Galia’s identification of business development and cost management initiatives.

“In our view Epichem has a bright future,” Dr Aston said.

Mr La Galia said his team at Epichem had enjoyed working with Unity for the past three years, and that he looked forward to the opportunity to work with the company again in the future.