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Response Genetics Q4 Revenues Drop 15 Percent

NEW YORK (GenomeWeb) – Response Genetics today after the close of the market reported a 15 percent decrease year over year in its fourth quarter revenues.

For the three months ended Dec. 31, 2014, Response Genetics' total revenues decreased to $4.1 million from $4.8 million in the prior-year period.

Revenue from ResponseDX cancer tests was $3.7 million for the quarter ended Dec. 31, 2014, compared to $3.2 million for the prior-year period, an increase of 16 percent, but revenue from pharmaceutical clients dropped 67 percent to $400,000 in Q4 2014 from $1.6 million in 2013.

"We are pleased with the increase in our 2014 ResponseDX revenues," Response Genetics CEO Thomas Bologna said in a statement. "Strategically, we continue to focus our revenue mix on the ResponseDX business for a number of reasons including its more predictable and controllable nature relative to that of our pharma business."

Its net loss for the quarter increased to $3.4 million, or $.09 per share, compared to a loss of $3.2 million, or $.09 per share, in Q4 2013.

The firm's R&D spending fell 51 percent year over year to $311,239 from $470,184, while SG&A costs fell 12 percent to $4.4 million from $5.0 million.

Revenues for full-year 2014 decreased 16 percent year over year to $16.7 million from $19.3 million. ResponseDX revenues increased $2.6 million or 22 percent over 2013, offset by a $5.7 million decrease in pharmaceutical client revenue, the firm said in a statement.

Its net loss for the year was $13.7 million, or $.35 per share, compared to $8.0 million, or $.24 per share, in 2013.

Response Genetics' R&D costs were up 8 percent to $1.7 million in 2014 from $1.6 million in 2013, while its SG&A spending rose 15 percent to $18 million from $15.7 million in 2013. The firm said in a statement that the increase in operating expenses was related to the allowance for doubtful accounts for its ResponseDX business, but that it had devoted significant attention to improving cash collections from sales of the test.

Response Genetics ended the year with $2.2 million in cash and cash equivalents.

"We anticipate an overall growth trend in our ResponseDX business, including collections, largely as a result of the initiatives and infrastructure that we implemented," Bologna said. He also noted that the firm received approval from the New York State Department of Health to market ResponseDX tests in the state.