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Cancer Genetics Completes $14M Purchase of Response Genetics' Assets

NEW YORK (GenomeWeb) – Cancer Genetics today announced it has completed the $14 million purchase of the assets of Response Genetics. 

Response Genetics filed for Chapter 11 bankruptcy protection in August. At the time, the Los Angeles-based cancer molecular diagnostics firm also said that it had entered into a stalking horse agreement for substantially all of its assets to be purchased by Cancer Genetics. A US Bankruptcy Court approved the acquisition earlier this month.

The deal is expected to provide Cancer Genetics between $10 million and $12 million in revenues. The company also said that it is expected to provide $4 million in future contract value from biopharma and clinical research clients. Cancer Genetics said it will continue to grow Response Genetics' biopharma operations, as well as its clinical services. 

Additionally, Cancer Genetics will take over Response Genetics' ALCHEMIST trial contract, which was awarded by the National Institutes of Health last year and will use tumor sequencing and genetic markers to determine whether therapies targeting genetic alterations can prevent lung cancer recurrence.

Alan Cheeks, Response Genetics' vice president of operations, will join Cancer Genetics’ management and be responsible for the company's day-to-day clinical and biopharma operations. Additionally, more than 20 sales people from Response Genetics will join the Rutherford, New Jersey-based company. 

Cancer Genetics paid $7 million in cash and 788,584 shares of ist common stock to complete the deal.