Los Angeles Business Journal

Falling Revenue Hurts Response Genetics’ Quarter

By Deborah Crowe Tuesday, March 27, 2012

Response Genetics Inc. said its fourth quarter revenue fell 23 percent with the end of a study for a large pharmaceutical client, leading to a larger net loss.

The Los Angeles developer of genetic diagnostic test kits on Tuesday reported a net loss of $3.9 million (-20 cents a share) for the quarter ended Dec. 31, compared with a net loss of $1.1 million (-6 cents) in the same period a year earlier.

Revenue fell from $6.4 million to $4.9 million, which the company attributed to nearly completed clinical trials related to an experimental GlaxoSmithKline product. Revenue from pharmaceutical clients totaled $1.8 million, while revenue from the company’s larger ResponseDx genetic test unit was up “slightly” to $3.1 million.

Chief Executive Thomas Bologna, who joined the company in December, said the company plans to more aggressively pursue new collaborations with pharmaceutical clients through its services business.

“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,” Bologna said in a statement.

Shares fell 19 cents, or 9 percent, to $1.86 on the Nasdaq.