Response Genetics Acquires Cancer Test

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East L.A. diagnostic testing firm Response Genetics announced Monday it had acquired an FDA-cleared test for diagnosing certain cancers.

Response Genetics is paying $200,000 in cash and issuing 500,000 shares of common stock for all of the key assets of Pathwork Diagnostics of Redwood City.

The primary asset in the deal is a cancer-diagnosing test that compares a patient’s genes with a panel of 15 known tumor types that collectively represent 90 percent of all cancers. It uses a proprietary platform and software and focuses on diagnosing hard-to-identify cancers whose origins are unknown, such as metastatic, poorly differentiated and undifferentiated cancers.

The test generated revenue in the mid-seven figures last year.

“Hard-to-identify tumors pose a significant clinical problem,” said Thomas Bologna, Response Genetics’ chairman and chief executive, said in a statement. “This acquisition is consistent with our goal to rapidly grow Response Genetics both organically and through a series of acquisitions. Acquiring the assets of Pathwork Diagnostics adds proprietary, Medicare reimbursed content that we believe addresses the needs of both pathologists and oncologists.”

Shares of Response Genetics were up more than 32 percent in midday trading, hitting a 52-week high of $2.93 before backing off to trade in the $2.50 range.

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