Response Genetics, Inc. to Increase Sales Force by 50 Percent to Meet Growing Demand for its ResponseDX Tests
LOS ANGELES--(BUSINESS WIRE)--Response Genetics Inc., a company focused on the development and sale of molecular diagnostic tests for cancer, today announced that it is expanding the sales force for its ResponseDX™ genetic test panels – proprietary PCR-based tests used to analyze the expression of genes that correlate with response to commonly used chemotherapy agents. Based on growing demand, the company plans on adding five additional representatives to its sales force by the end of Q1 of this year. With an internal sales force of 15, as well the necessary support and infrastructure, the company will be better able to capitalize on the rapid market acceptance of Response Genetics’ personalized medicine solutions.
“We’re pleased by the sales ramp of our ResponseDX™ tests and attribute this success to the decision to expand our sales force in early 2009,” said Kathleen Danenberg, CEO and president of Response Genetics. “Now, as the benefits of our genetic testing approach are being realized by both new and repeat customers, we are capitalizing on this market opportunity by hiring additional sales people. Through a robust hiring practice and scalable business model, we are continuing to implement a successful growth strategy.”
Additional commercial highlights:
* Recently reported run rate of approximately 1,800 tests per quarter * Increased sales from approximately 500 tests in 2008 to over 4,300 in 2009 * Reorder rate of approximately 90 percent * Forty percent increase in reimbursement per test – from $1,000 to approximately $1,400
ResponseDX™ genetic tests are available in the United States through direct sales by the company’s internal sales force and through NeoGenomics Laboratories, and in Australia and certain Asian countries through a recently signed distribution agreement with Genetic Technologies. Response Genetics continues to partner with companies globally to deliver its products and services. All samples are processed at Response Genetics’ CLIA-certified laboratory.
About Response Genetics, Inc.
Response Genetics Inc. (“RGI”) is focused on the development and sale of molecular diagnostic tests for cancer. RGI’s technologies enable extraction and analysis of genetic information from genes derived from tumor samples stored as formalin-fixed and paraffin-embedded specimens. In addition to diagnostic testing services, the Company generates revenue from the sales of its proprietary analytical pharmacogenomic testing services of clinical trial specimens to the pharmaceutical industry. RGI was founded in 1999 and its principal headquarters are located in Los Angeles, California. For more information, please visit www.responsegenetics.com.
Forward-Looking Statement Notice
Except for the historical information contained herein, this press release and the statements of representatives of RGI related thereto contain or may contain, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans, objectives, projections, expectations and intentions, such as the ability of the Company to successfully consummate the services contemplated by its distribution agreements, the ability of the Company to expand the sales force and to recruit sales representatives by the end of Q1, the ability of the Company to continue to maintain the run rate, the ability of the Company to maintain the current reorder rate, the ability of the Company to continue to collect revenues on sales of its ResponseDX tests and to maintain the current reimbursement rate, the cost-effectiveness of test panels, and other statements identified by words such as “projects,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans” or similar expressions.
These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. Actual results, including, without limitation, actual sales results, if any, or the application of funds, may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). The Company undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
Contact:
Trout Group Peter Rahmer, 646-272-8526 (Investor Relations) or Fleishman-Hillard Barry Sudbeck, 415-318-4261 (Media Relations)