Mar 26 2008, 3:14 PM EST
News source: Business Wire
Response Genetics, Inc. (NASDAQ: RGDX) a company focused on the development of molecular diagnostic tests for cancer, today announced its consolidated financial results for the twelve months ended December 31, 2007 and the fourth quarter of 2007.
"During the fourth quarter of 2007, Response Genetics made great strides to get the ERCC1 test ready for its first quarter 2008 launch," said Kathleen Danenberg, President and CEO of Response Genetics. "I'm happy to report that not only did we launch ERCC1 in March 2008, but we also expanded our test offerings in the form of ResponseDX: Lung(TM) and ResponseDX: Colon(TM), which includes tests for KRAS mutation status, RRM1 gene expression, EGFR amplification, and TS gene expression. The added tests will give both physicians and their patients invaluable information for planning their therapies for non-small cell lung cancer and colorectal cancer. We look forward to expanding the use of ResponseDX tests and further developing our diagnostic pipeline."
Financial Results for Twelve Months Ended December 31, 2007
Total revenue increased by 30% to $7.8 million in the twelve months ended 2007, compared to $6.0 million in the twelve months of 2006. 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 twelve months ended in 2007 was $4.0 million compared with $2.5 million for the twelve months of 2006. Research and development expenses were $2.5 million for the twelve months of 2007, compared with $1.3 million for the same period in the prior year. General and administrative expenses were $6.8 million for the twelve months of 2007 compared to $4.0 million for the same period in 2006. Total operating expenses for the twelve months of 2007 increased to $13.3 million, compared with $7.7 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 totaled approximately $2.1 million, (2) operating costs related to the start up and continuing operation of the European laboratory totaled approximately $1.5 million, (3) costs involving the new testing services the Company is offering and additional reagents and supplies totaled approximately $900,000, (4) increases in maintaining the Company's intellectual property portfolio, costs related to the completion of the Company's IPO, and costs associated with being a public company, additional depreciation on fixed asset purchases all totaled approximately $1.1 million.
Response Genetics' net loss for the twelve months ended 2007 was $5.5 million or $0.78 per share, compared with a net loss of $2.3 million, or $0.84 per share, for the twelve months of 2006.
Financial Results for the Fourth Quarter Ended December 31, 2007
Total revenue increased by 11% to $2.4 million in the fourth quarter of 2007, compared to $2.2 million in the fourth quarter of 2006. Cost of revenue for the fourth quarter of 2007 was $1,129,473, compared with $834,169 for the fourth quarter of 2006. Research and development expenses were $566,293 for the fourth quarter of 2007, compared with $399,184 for the same period in the prior year. General and administrative expenses of $1.8 million for the fourth quarter of 2007 increased from $1.7 million for the fourth quarter of the prior year. Total operating expenses for the fourth quarter of 2007 increased to $3.5 million, compared with $2.9 million for the same period last year.
Cash and Cash Equivalents
Cash and cash equivalents at December 31, 2007 were $17.0 million compared to $4.9 million a
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