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Why Response Genetics is Soaring 38 Percent Monday (RGDX)

Zemanta Related Posts ThumbnailShares of Response Genetics (RGDX) are up more than 38 percent Monday. The company announced that it had acquired all of the key assets of Pathwork Diagnostics including a test for the diagnosis of metastatic, poorly differentiated and undifferentiated cancer. What likely has investors excited is that the test is already FDA approved and Medicare covered.

Terms include a $200,000 cash payment and 500,000 shares of Response Genetics with a lock-up period through June 2014.

“Hard-to-identify tumors pose a significant clinical problem,” said Thomas Bologna, Chairman and Chief Executive Officer of Response Genetics. “The traditional approach — iterative rounds of testing — may take weeks and still not definitively identify the type of cancer present. This proprietary gene expression approach that we acquired reduces the time to diagnosis and increases physicians’ probability of reaching a definitive diagnosis, a necessary step in therapy selection, and it is well accepted that minimizing the waiting time before treatment maximizes patient outcomes.”

Company Profile:

Response Genetics, Inc. (the “Company”) is a CLIA-certified clinical laboratory focused on the development and sale of molecular diagnostic testing services for cancer. The Company’s technologies enable extraction and analysis of genetic information derived from tumor cells stored as formalin-fixed and paraffin-embedded specimens. The Company’s principal customers include oncologists and pathologists. In addition to diagnostic testing services, the Company generates revenue from the sale of its proprietary analytical pharmacogenomic testing services of clinical trial specimens to the pharmaceutical industry.

[stock-tools exchange="NASDAQ" symbol="RGDX" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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