Response Genetics, Inc. (NASDAQ: RGDX), a company focused on the
development and commercialization of molecular diagnostic tests for
cancer, today announced its consolidated financial results for the three
months ended March 31, 2008.
"These results, coupled with our expansion of
the ResponseDX: Lungâ„¢ and ResponseDX: Colonâ„¢ test offerings illustrate the company´s
commitment to meeting the operational goals we have set forth," said Kathleen Danenberg, CEO and President of Response Genetics, Inc. "We
are very encouraged by the positive responses we´ve
had with the controlled launch of ResponseDX: Lungâ„¢ and ResponseDX: Colonâ„¢ and look forward to
expanding our diagnostic pipeline."
Financial Results for Three Months Ended
March 31, 2008
Total revenue increased by 18 percent, to $1.9 million, in the three
months ended March 31, 2008, compared with $1.6 million in the same
period last year. This increase was primarily generated by the Company´s
existing pharmaceutical contracts related to pharmacogenomic testing
services and the introduction of new testing services being offered by
Response Genetics to its pharmaceutical clients.
Cost of revenue for the three months ended March 31, 2008, was $919,000
compared with $823,000 for the same three months ended in 2007. Research
and development expenses were $603,000 for the three months ended March
31, 2008, compared with $320,000 for the same period in the prior year.
General and administrative expenses were $2.3 million for the three
months ended March 31, 2008, compared with $1.3 million for the same
period in 2007. Total operating expenses for the three months ended
March 31, 2008, increased to $3.8 million, compared with $2.4 million
for the same period last year. The increases in operating expenses were
primarily due to: (1) non-cash, stock-based compensation to employees
and new personnel to support the Company´s
growth, which totaled approximately $320,000; (2) operating costs
related to the startup and continuing operation of the European
laboratory, which totaled approximately $565,000; (3) initial marketing
costs associated with the launch of ResponseDX: Lungâ„¢ and ResponseDX: Colonâ„¢, which totaled
$230,000; and (4) increases in maintaining the Company´s
intellectual property portfolio, costs associated with being a public
company and additional depreciation on fixed asset purchases, which all
totaled approximately $240,000.
Response Genetics´ net loss for the three months ended March 31, 2008
was $1,725,000, or $0.17 per share, compared with a net loss of
$992,000, or $0.36 per share, for the three months ended March 31, 2007.
Cash and Cash Equivalents
Cash and cash equivalents at March 31, 2008, were $17.5 million
compared with $17.0 million at December 31, 2007. Working capital was
$15.6 million.
Clinical Highlights
In March 2008, Response Genetics, Inc. expanded its test offerings to
include ResponseDX: Lungâ„¢ (ERCC1 gene
expression, RRM1 gene expression, KRAS mutation analysis, EGFR
amplification) and ResponseDX: Colonâ„¢(ERCC1
gene expression, KRAS mutation analysis, TS gene expression). Both are
PCR-based tests that help guide therapeutic treatment decisions in
patients with non-small cell lung cancer (NSCLC) and colorectal cancer
(CRC). All of the Company´s tests can be
performed on a single formalin-fixed, paraffin-embedded (FFPE) tumor
tissue sample, eliminating the need for additional tumor samples.
ResponseDX: Lungâ„¢ and ResponseDX: Colonâ„¢are currently available to prequalified institutions and practice groups
through Response Genetics´ CLIA-registered
laboratory.
As platinum-based therapies are standard care for about 500,000 newly
diagnosed cancer patients per year in the United States, Response
Genetics, Inc. is validating the use of single gene tests in additional
tumor types in a variety of cancers.
About Response Genetics, Inc.
Response Genetics, Inc. ("RGI"; the "Company")
(NASDAQ: RGDX) is engaged in the research and development of
pharmacogenomic cancer diagnostic tests based on its proprietary and
patented technologies. RGI´s technologies enable extraction and analysis
of genetic information from genes derived from tumor samples stored as
formalin-fixed and paraffin-embedded specimens. RGI currently generates
revenue primarily from the sales of its proprietary analytical
pharmacogenomic testing services of clinical trial specimens to the
pharmaceutical industry. The Company was founded in 1999, and its
principal headquarters are located in Los Angeles, Calif. For more
information, please visit www.responsegenetics.com.
Forward Looking Statement Notice
Except for the historical information contained herein, this press
release and the statements of representatives of RGI related thereto
contain or may contain, among other things, certain forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995.
Such forward-looking statements involve significant risks and
uncertainties. Such statements may include, without limitation
statements with respect to the Company´s plans, objectives, projections
expectations and intentions, such as the ability of the Company to
analyze cancer samples, the potential for using the results of this
research to develop diagnostic tests for cancer, the usefulness of
genetic information to tailor treatment to patients, the ability of the
Company to make its ResponseDx:Lungâ„¢ and
ResponseDX:Colonâ„¢ tests available in a number
of institutions, and other statements identified by words such as
"projects," "may," "could," "would," "should," "believes," "expects,"
"anticipates," "estimates," "intends," "plans" or similar expressions.
These statements are based upon the current beliefs and expectations of
the Company´s management and are subject to significant risks and
uncertainties, including those detailed in the Company´s filings with
the Securities and Exchange Commission. Actual results, including
without limitation, actual sales results, if any, or the application of
funds, may differ from those set forth in the forward-looking
statements. These forward-looking statements involve certain risks and
uncertainties that are subject to change based on various factors (many
of which are beyond the Company´s control). The Company undertakes no
obligation to publicly update forward-looking statements, whether
because of new information, future events or otherwise, except as
required by law.
= = = = = = = = = = =
RESPONSE GENETICS, INC.
CONSOLIDATED BALANCE SHEETS
- - - - - -
- - - - - -
December 31, 2007
March 31
2008
- - - - - -
(Unaudited)
- - - - - -
ASSETS
- - - - - -
Current assets
- - - - - -
Cash and cash equivalents
$
17,024,209
$
17,534,089
- - - - - -
Accounts receivable
4,206,765
926,683
- - - - - -
Prepaid expenses and other current assets
562,403
788,668
- - - - - -
Total current assets
21,793,377
19,249,440
- - - - - -
Property and equipment, net
2,593,303
2,726,161
- - - - - -
Other assets
27,353
27,353
- - - - - -
Total assets
$
24,414,033
$
22,002,954
- - - - - -
LIABILITIES AND STOCKHOLDERS´ EQUITY
- - - - - -
Current liabilities
- - - - - -
Accounts payable
$
234,705
$
690,400
- - - - - -
Accrued expenses
305,517
350,955
- - - - - -
Accrued royalties
264,551
315,090
- - - - - -
Accrued payroll, bonus and related liabilities
521,123
292,199
- - - - - -
Deferred revenue
4,706,045
1,995,408
- - - - - -
Total current liabilities
6,031,941
3,644,052
- - - - - -
- - - - - -
Deferred revenue, net of current portion
3,276,317
4,664,532
- - - - - -
Total liabilities
9,308,258
8,308,584
- - - - - -
Commitments and contingencies
- - - - - -
Stockholders´ equity
- - - - - -
Common stock, $0.01 par value; 50,000,000 shares authorized;
10,239,276 shares issued and outstanding at December 31, 2007 and
March 31, 2008
102,393
102,393
- - - - - -
Additional paid-in capital
35,356,569
35,676,172
- - - - - -
Accumulated deficit
(20,320,191
)
(22,045,161
)
- - - - - -
Accumulated other comprehensive loss
(32,996
)
(39,034
)
- - - - - -
Total stockholders´ equity
15,105,775
13,694,370
- - - - - -
Total liabilities and stockholders´ equity
$
24,414,033
$
22,002,954
- - - - - -
= = = = = = = = = = =
RESPONSE GENETICS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
- - - - - -
- - - - - -
Three Months
Ended March 31
- - - - - -
2007
2008
- - - - - -
Revenue
$
1,619,760
$
1,902,936
- - - - - -
Operating expenses:
- - - - - -
Cost of revenue
822,840
918,965
- - - - - -
General and administrative
1,263,066
2,273,473
- - - - - -
Research and development
320,422
603,385
- - - - - -
Total operating expenses
2,406,328
3,795,823
- - - - - -
Operating loss
(786,568
)
(1,892,887
)
- - - - - -
Other (expense):
- - - - - -
Interest expense
(12,250
)
(2,876
)
- - - - - -
Interest income
41,676
153,172
- - - - - -
Other
"â€
17,621
- - - - - -
Loss before income taxes
(757,142
)
(1,724,970
)
- - - - - -
Provision for income taxes
800
"â€
- - - - - -
Net loss
(757,942
)
(1,724,970
)
- - - - - -
Preferred stock dividends
(233,561
)
"â€
- - - - - -
Net Loss attributable to common stockholders
$
(991,503
)
$
(1,724,970
)
- - - - - -
Net Loss per share "†basic
$
(0.36
)
$
(0.17
)
- - - - - -
Net Loss per share "†diluted
$
(0.36
)
$
(0.17
)
- - - - - -
Weighted-average shares "†basic
2,726,320
10,239,276
- - - - - -
Weighted-average shares "†diluted
2,726,320
10,239,276
- - - - - -
