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Response Genetics Raises $8.8M in Financing

NEW YORK (GenomeWeb News) – Response Genetics has raised $8.8 million through a private placement of its stock with GlaxoSmithKline and an existing "significant" stockholder, the firm said today.

The Los Angeles-based molecular diagnostics firm placed 8 million newly issued shares of its common stock at a price of $1.10 per share. The placement closed today.

"We are pleased to welcome GlaxoSmithKline as a new investor, given our long-standing relationship," Thomas Bologna, chairman and CEO of Response Genetics, said in a statement. "The capital raised will help support our continued efforts in building a sustainable business of high value genetic tests for cancer patients as well as a premier pharmaceutical services business."

Response Genetics inked a deal with GlaxoSmithKline in 2010, under which it licensed to the drug giant non-exclusive rights to its PCR technology and agreed to provide diagnostic expertise to assess BRAF gene mutations in human tumor samples. The firm also has provided GSK with genetic testing services to support its drug development programs.

In Thursday morning trade on the Nasdaq, shares of Response Genetics were up 47 percent at $1.33.