Response Genetics, Inc. Acquires Proprietary FDA-Cleared and
Medicare-Reimbursed Test and All Associated Assets for Difficult to Diagnose
Acquisition Expected to Complement and Add Material Sales to Company's Dx
LOS ANGELES, Aug. 26, 2013 (GLOBE NEWSWIRE) -- Response Genetics, Inc.
(Nasdaq:RGDX), a company focused on the development and sale of molecular
diagnostic tests for cancer, today announced the acquisition of all of the key
assets of Pathwork Diagnostics, including its FDA-cleared, Medicare-reimbursed
test for the diagnosis of metastatic, poorly differentiated and
Terms of the deal include a $200,000 cash payment and issuance of 500,000
shares of Response Genetics common stock with a lock-up period through June
2014. The Company expects the deal to be accretive within its first full year
The acquired assets and associated test use a proprietary microarray platform
and proprietary software to compare the expression of 2,000 genes in a
patient's tumor with a panel of 15 known tumor types that represent 90% of all
cancers. The test received FDA clearance in June 2010 and is the most
published, extensively validated molecular diagnostic test of its kind. Prior
to its acquisition by Response Genetics, the test generated rapidly growing
sales including 2012 sales dollar volume in the mid-seven figure range.
The identity of most tumors can be determined using traditional methods.
However, when tumors are poorly differentiated or metastatic with no clear
primary origin, providing a definitive diagnosis is usually very difficult or
nearly impossible to determine. It is estimated that up to 150,000
newly-diagnosed cancer patients annually, in just the U.S., may have a tumor
for which the site of origin is uncertain after the initial diagnostic workup.
"Hard-to-identify tumors pose a significant clinical problem," said Thomas
Bologna, Chairman and Chief Executive Officer of Response Genetics. "The
traditional approach – iterative rounds of testing – may take weeks and still
not definitively identify the type of cancer present. This proprietary gene
expression approach that we acquired reduces the time to diagnosis and
increases physicians' probability of reaching a definitive diagnosis, a
necessary step in therapy selection, and it is well accepted that minimizing
the waiting time before treatment maximizes patient outcomes."
Mr. Bologna added, "This acquisition is consistent with our goal to rapidly
grow Response Genetics both organically and through a series of acquisitions.
Acquiring the assets of Pathwork Diagnostics adds proprietary, Medicare
reimbursed content that we believe addresses the needs of both pathologists
and oncologists, further expands both our technology and testing base,
leverages our current infrastructure well and most importantly adds to the top
line growth of our Dx business."
For further transaction details, please refer to the Company's Form 8-K
related to the transaction that will be filed with the Securities and Exchange
Commission no later than August 29, 2013.
About Response Genetics, Inc.
Response Genetics, Inc. (the "Company") is a CLIA-certified clinical
laboratory focused on the development and sale of molecular diagnostic testing
services for cancer. The Company's technologies enable extraction and analysis
of genetic information derived from tumor cells stored as formalin-fixed and
paraffin-embedded specimens.The Company's principal customers include
oncologists and pathologists.In addition to diagnostic testing services, the
Company generates revenue from the sale of its proprietary analytical
pharmacogenomic testing services of clinical trial specimens to the
pharmaceutical industry.The Company's headquarters is located in Los Angeles,
California.For more information, please visit www.responsegenetics.com.
Forward-Looking Statement Notice
Except for the historical information contained herein, this press release and
the statements of representatives of the Company related thereto contain or
may contain, among other things, certain forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve significant risks and
uncertainties.Such statements may include, without limitation, statements
with respect to the Company's plans, objectives, projections, expectations and
intentions, such as the ability of the Company, to provide clinical testing
services to the medical community, to continue to strengthen and expand its
sales force, to continue to build its digital pathology initiative, to attract
and retain qualified management, to continue to strengthen marketing
capabilities, to expand the suite of ResponseDX® products, to continue to
provide clinical trial support to pharmaceutical clients, to enter into new
collaborations with pharmaceutical clients, to enter into areas of companion
diagnostics, to continue to execute on its business strategy and operations,
to continue to analyze cancer samples and the potential for using the results
of this research to develop diagnostic tests for cancer, the usefulness of
genetic information to tailor treatment to patients, and other statements
identified by words such as "project," "may," "could," "would," "should,"
"believe," "expect," "anticipate," "estimate," "intend," "plan" or similar
These statements are based upon the current beliefs and expectations of the
Company's management and are subject to significant risks and uncertainties,
including those detailed in the Company's filings with the Securities Exchange
Commission.Actual results, including, without limitation, actual sales
results, if any, or the application of funds, may differ from those set forth
in the forward-looking statements.These forward-looking statements involve
certain risks and uncertainties that are subject to change based on various
factors (many of which are beyond the Company's control).The Company
undertakes no obligation to publicly update forward-looking statements,
whether because of new information, future events or otherwise, except as
required by law.
CONTACT: Investor Relations Contact:
Thomas A. Bologna
Chairman & Chief Executive Officer
Response Genetics Logo
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