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."