Response Genetics closes UK facility

16 February 2009

Response Genetics, Inc. (Nasdaq:RGDX), a developer of molecular diagnostic tests for cancer, has announced that it is closing its Edinburgh, UK facility and increasing the capacity of its US CLIA-certified laboratory in Los Angeles in expectation of increasing demand for its ResponseDX genetic testing services.

The company says it expects the move to save it approximately $2.3 million in annual expense and it will not affect its current genetic testing services or partnership agreements.

In connection with this consolidation, the Company has terminated all associated personnel in the UK, including Dr James Clark, its UK-based chief operating officer.

“The UK closure is part of a strategic plan to increase operational efficiency and capacity, as well as reduce overall expenses,” said Kathleen Danenberg, Response Genetics president and CEO. “Operations are well positioned in our Los Angeles laboratory and should continue without interruption. Our testing services are expected to increase, following the recent decision to expand our US sales force to meet increasing demand for our family of ResponseDX products and services.”

In January the company announced that it had extended an  agreement with GlaxoSmithKline for two years in which Response Genetics is the preferred provider of genetic testing services to GlaxoSmithKline and its affiliated companies.

Response Genetics’ patented diagnostic technology and services are commercially available to physicians through the company’s ResponseDX: Lung and ResponseDX: Colon tests.  By providing information on a panel of molecular markers, these PCR-based genetic tests can help physicians with therapeutic treatment decisions in patients with non-small cell lung cancer and colorectal cancer.     

Response Genetics says that following the consolidation it will continue to provide its pharmaceutical partners with genetic testing services and offer services in Asia through the Company’s partnership with Hitachi Chemical Co., Ltd.

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