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UPDATE: Response Genetics' Q4 Revenues Slide 23 Percent as Project Nears End

This article has been updated to clarify the status of Response Genetics' alliance with GlaxoSmithKline, which is ongoing.

NEW YORK (GenomeWeb News) – Response Genetics today reported a 23 percent year-over-year drop in revenues for its fourth quarter, driven by a decrease in pharmaceutical client revenue.

During the three months ended Dec. 31, 2011, total revenues declined to $4.9 million from $6.4 million in Q4 2010. The company said that the near completion of clinical trials performed for GlaxoSmithKline accounted for much of the drop-off. Revenue from pharmaceutical clients was $1.8 million, while revenue from the firm's ResponseDx genetic tests came in at $3.1 million, a "slight increase" from year-ago figures, the company said.

A company spokesperson told GenomeWeb Daily News that although two Phase III clinical trials are nearing completion, "there remains significant work with GSK. The two companies also still have a Master Services Agreement and it remains a strong working relationship."

Response Genetics upped its R&D spending 46 percent year over year during the quarter to $483,275 from $332,081. Its SG&A expenses rose 9 percent year over year to $4.7 million from $4.3 million.

The Los Angeles-based firm recorded a net loss of $3.9 million, or $.20 per share, in the quarter, compared to a net loss of $1.1 million, or $.06 per share, a year ago.

During full-year 2011, total revenues were up 6 percent to $22.6 million from $21.3 million in 2010 as ResponseDx revenues rose 11 percent to $12.5 million, compared to $11.3 million a year ago. Pharmaceutical client revenue inched up to $10.1 million from $10.0 million.

The firm's R&D spending was reduced to $1.3 million from $1.6 million, a 19 percent decrease year over year. Its SG&A costs increased 13 percent to $11.0 million from $9.7 million.

Response Genetics posted a 2011 net loss of $5.7 million, or $.30 per share, compared to a net loss of $4.7 million, or $.26 per share, a year ago.

Response Genetics had $1.7 million in cash and cash equivalents as of the end of the year. In February, it raised $7.8 million in gross proceeds from a private placement of stock. Late that month, the firm also said that it regained compliance with Nasdaq after fulfilling a listing requirement covering the minimum market value of listed securities.

Thomas Bologna, who became chairman and CEO of Response Genetics in December, said in a statement today that "a lot of hard work" remains to be done.

"Now that we completed the successful financing … our primary near-term priorities are to build out the management team, implement several operational enhancements, expand our sales force, strengthen our marketing and back-office capabilities and focus on growing our suite of ResponseDx products," he said. "We will also be looking to establish new collaborations with pharmaceutical clients through our services business."

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