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Response Biomedical Posts 23 Percent Decline in 2010 Revenues

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Response Biomedical today reported that its fiscal-year 2010 revenues dropped 23 percent year over year on lower sales of products to partners and decreased service revenues.

The Vancouver, British Columbia-based firm reported revenues of C$7.6 million (US$7.8 million) for 2010 compared to C$9.9 million for the previous year. Its product sales for the year were down 11 percent at C$7.3 million versus C$8.2 million the prior year, while its services revenue declined 80 percent to $356,066 from $1.8 million.

Response Biomedical said the drop in revenues was due to a result of reduced shipments to Roche Diagnostics, a distributor of its RAMP test products, and 3M. During the year, 3M decided not to proceed with development of the firm's next-generation flu product.

Response Biomedical's net loss for the year was C$9.6 million, or C$.31 per share, compared to a net loss of C$9.5 million, or C$.43 per share, for 2009.

"Despite the increased international business, 2010 revenues decreased primarily as a result of reduced shipments to 3M Company and Roche Diagnostics in 2010 as compared to 2009," Response Biomedical CEO S. Wayne Kay said in a statement. "Operationally, we saw the expansion of our distributors in China and Europe and are continuing to build our own network of international distributors as the Company moves toward profitability."

In September 2010, Response Biomedical announced that it would refocus its resources and cut its workforce around 25 percent in an effort to cut costs.