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Response Genetics Q4 Revenues Down 13 Percent on Lower Pharma Client Business

NEW YORK (GenomeWeb News) – Molecular diagnostic testing firm Response Genetics today reported a 13 percent drop year over year in its fourth quarter revenues.

For the three months ended Dec. 31, 2013, the Los Angeles-based company recorded revenues of $4.8 million, down from $5.5 million in Q4 2012. While Response DX test revenues were up 3 percent year over year, pharmaceutical client revenues were down 35 percent year over year, it said.

The firm said that Response DX revenues grew as a result of its "planned and implemented service offerings" and a focus on the company's sales efforts on larger accounts. In particular, Response noted the launch in the third quarter of its TC/PC testing service, in which the company processes a patient's sample while the sending pathologist interprets the results.

It added that the drop in pharma client revenues resulted primarily from the timing of services performed for the company's largest pharma clients.

Its net loss for the quarter grew to $3.2 million, or $.09 per share, from a net loss of $487,342, or $.01 per share, a year ago.

Its R&D costs were up 9 percent year over year to $470,184 from $432,760, while its SG&A costs increased 67 percent to $5.0 million from $3.0 million.

For full-year 2013, revenues grew 6 percent to $19.8 million from $18.7 million. Response said the increase was due primarily to a bump-up of $900,000 in pharma client revenues last year to a total of $7.8 million.

The company had a loss of $8.0 million, or $.24 per share, in 2013, compared to a net loss of $7.8 million, or $.29 per share, in 2012.

Response Genetics recorded $1.6 million in R&D expenses in 2013, down 24 percent year over year from $2.1 million, while its SG&A costs rose 14 percent to $15.7 million from $13.8 million.

The company finished 2013 with $8.1 million in cash and cash equivalents.