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Response Genetics Posts 3 Percent Revenue Decline on Reimbursement Reduction

NEW YORK (GenomeWeb) – Response Genetics reported today a roughly 3 percent drop in its first quarter revenues as an increase in test order volume was offset by lower reimbursement.

The Los Angeles-based molecular diagnostic testing services firm reported total revenues of $3.8 million for the three months ended March 31, down from $3.9 million in Q1 2014. It said that sales associated with its ResponseDx tests were $3.3 million, consistent with the first quarter of 2014. However, its pharmaceutical client revenue slipped to $500,000 from $600,000 year over year.

Response said that order volume associated with ResponseDx increased 29 percent year over year, but sales were hit by reductions in reimbursement from both Medicare and third-party payors.

The firm posted a net loss of $4 million, or $.10 per share, compared with a net loss of $3.5 million, or $.09 per share, for Q1 2014.

Its R&D spending was trimmed to $268,200 from $467,567, and its SG&A expenses rose to $4.8 million from $4.5 million.

Response Genetics finished the quarter with $1.7 million in cash and cash equivalents.

In early Thursday trade on the Nasdaq, shares of Response Genetics were down 6 percent at $.30.

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