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Response Genetics Closes UK Facility in Consolidation

NEW YORK (GenomeWeb News) – Molecular diagnostics firm Response Genetics said today that it is closing its UK-based facility in a cost-cutting move expected to save $2.3 million annually.

The company disclosed in a filing with the US Securities and Exchange Commission that it has laid off all of its UK employees, a total of nine positions, including James Clark, its UK-based COO.

The reduction in force will be "substantially complete" on March 31, the company said.

Response Genetics plans to consolidate all its services at its CLIA-certified laboratory facilities in Los Angeles. The consolidation is "part of a strategic plan to increase operational efficiency" and will not affect the company's genetic testing services or current partnership agreements, the company said.

In connection with the restructuring, the company expects to incur expenses of around $250,000, which it will include in its financial report for the quarter ended Dec. 31, 2008.

Response said that it "will identify certain other costs and write-downs but it cannot estimate those costs at this time."

Kathleen Danenberg, president and CEO of Response Genetics, said in a statement that operations in the company's Los Angeles lab "should continue without interruption."

Danenberg added that the firm expects its testing services to increase "following the recent decision to expand our US sales force to meet increasing demand for our family of ResponseDX products and services."