NEW YORK (GenomeWeb News) – Molecular diagnostics company Response Genetics today reported a 40 percent increase year over year in its first-quarter revenues.
The Los Angeles-based company said that for the three months ended March 31, revenues rose to $5.6 million from $4.0 million. Revenues from its pharmaceutical clients increased 137 percent year over year, while revenues generated by ResponseDX products rose 8 percent.
Response Genetics' net loss in the quarter dropped to $$824,304, or $.03 per share, from a net loss of $3.1 million, or $.14 per share, a year ago. The company used about 33 million shares in calculating its per-share loss for the recently completed quarter, compared to 23 million shares a year ago.
Response Genetics placed 8 million new shares of its stock in September with GlaxoSmithKline and a "significant" shareholder, raising $8.8 million.
The firm's R&D costs were cut 48 percent year over year to $297,200 from $569,955, and SG&A costs were trimmed 5 percent to $3.6 million from $3.8 million.
Response Genetics finished the quarter with $8.0 million in cash and cash equivalents.
"Despite the pricing headwinds brought about by Medicare in 2013, we have managed to once again grow our Dx revenues while maintaining strong gross margins," Response Genetics Chairman and CEO Thomas Bologna said in a statement.
"As we continue to leverage our strong balance sheet to invest in sales and marketing, we expect to deliver meaningful top-line growth in our Dx business in the second half of 2013. We believe recent additions to both our sales force infrastructure and sales and marketing management, coupled with a constant focus on cost structure and operational efficiencies, which were the hallmarks of our 2012 turnaround, will help further drive our strategic and financial performance," he continued.
In Tuesday morning trading on the Nasdaq, shares of Response Genetics were down 3 percent at $1.18.