NEW YORK (GenomeWeb News) – Response Genetics today reported that its revenues for the fourth quarter increased 12 percent year over year on the strength of its pharmaceutical client business.
The Los Angeles-based molecular diagnostic firm posted $5.5 million in revenues for the three months ended Dec. 31, 2012, compared to $4.9 million a year ago. Pharmaceutical client revenues rose 36 percent year over year, the company said, while revenues generated from Response DX genetic tests slid 1 percent.
Response Genetics posted a net loss of $487,342, or $.01 per share, during the fourth quarter, compared to a net loss of $3.9 million, or $.20 per share, in Q4 a year ago. The firm used about 32.8 million shares to calculate its net loss per share in the recently completed quarter, compared to 19.5 million shares in the year-ago period.
Its R&D spending in the quarter was down 10 percent to $432,760 from $483,275 a year ago, while SG&A costs were down 36 percent to $3.0 million from $4.7 million.
Revenues for full-year 2012 decreased 17 percent to $18.7 million from $22.6 million in 2011. The company said that the drop-off was due primarily to a reduction in pharmaceutical client revenue during the first half of 2012, resulting in a 32 percent decrease to $6.9 million for the full year from $10.1 million in 2011.
Response DX revenues slid 5 percent year over year to $11.9 million from $12.5 million.
The firm's net loss in 2012 was $7.8 million, or $.29 per share, compared to a net loss of $5.7 million, or $.30 per share, in 2011. Response Genetics used 26.7 million shares to calculate its net loss per share in 2012 and 19.1 million shares to arrive at its 2011 figure.
The company upped its R&D spending 62 percent to $2.1 million from $1.3 million, while its SG&A spending was trimmed 10 percent to $13.8 million from $15.3 million.
The company ended the year with $9.0 million in cash and cash equivalents.
In September Response Genetics placed 8 million new shares of its stock with GlaxoSmithKline and a "significant" shareholder, raising $8.8 million. In February 2012 the company raised $7.8 million by placing 5.3 million new shares of its stock in a private placement.
Thomas Bologna, chairman and CEO of Response Genetics, said in a statement that the company has a strong balance sheet, which will allow the company to build top-line growth.
"We are well on our way to developing a dynamic Response DX sales force which we expect will deliver top-line testing growth in the second half of 2013," he said. "We believe strong top-line growth coupled with the company's new management team, cost structure, and focus on operational efficiencies, which were the hallmarks of our 2012 effort, will help to further drive our strategic and financial performance."
In morning trading on the Nasdaq, shares of Response Genetics were up 4 percent to $1.34.