Cancer Genetics Receives Bankruptcy Court Approval To Purchase Los Angeles-Based Response Genetics
Published: Oct 02, 2015
RUTHERFORD, N.J., Oct. 2, 2015 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc. (Nasdaq:CGIX) ("CGI" or "The Company"), an emerging leader in DNA-based cancer diagnostics, announced today that it received approval from the United States bankruptcy court in Delaware to purchase substantially all of the assets of Los Angeles-based Response Genetics, Inc. ("RGI"). In connection with the transaction, CGI also agreed to assume certain of RGI's liabilities. The sale is subject to certain customary closing conditions and is anticipated to close by October 9, 2015.
The acquisition, if consummated, is expected to contribute an additional $10 to $12 million to CGI in revenue over the next 12 months and to expand CGI's solid tumor molecular diagnostics offering to include lung cancer, colorectal cancer and melanoma tests that help determine a patient's response to cancer therapy. Once integrated, the combined entity will have expertise in solid and hematological cancers, a national geographic footprint, and the ability to provide services to large-scale clients including biotechnology/pharmaceutical companies and clinicians.
The lease for RGI's 27,000 sq. ft. CLIA-certified and CAP-accredited laboratory, located in Los Angeles, California is being assumed by CGI in the transaction. Cancer Genetics plans to develop RGI's Los Angeles facility into a center of excellence in solid tumors, with a particular emphasis on lung cancer once the purchase is finalized.
In 2014, RGI was awarded the multi-year ALCHEMIST Trial contract, by the National Cancer Institute, focused on biomarker-based treatment for lung cancer. Cancer Genetics, as part of the transaction, will be taking over the ALCHEMIST Trial contract.
As previously announced, the purchase price is approximately $14 million, which will include $7 million in cash and 788,584 shares of CGI common stock.
About Cancer Genetics
Cancer Genetics Inc. is an emerging leader in DNA-based cancer diagnostics. Our tests target difficult to diagnose hematological, urogenital and HPV-associated cancers. They are designed to guide the prognosis and treatment of these cancers with the goal of improving outcomes for patients. We have established strong clinical research collaborations with major cancer centers such as Memorial Sloan Kettering, The Cleveland Clinic, Mayo Clinic and the National Cancer Institute.
We also offer a comprehensive range of oncology-focused tests and laboratory services that provide critical genomic information to healthcare professionals and biopharmaceutical companies. Our state-of-the-art reference labs are CLIA certified and CAP accredited in the US and have licensure from several states including New York State.
About Response Genetics
Response Genetics, Inc. 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. The Company's headquarters are located in Los Angeles, California. For more information, please visit www.responsegenetics.com.
Forward Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for Cancer Genetics, Inc. products and services, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to, statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, risks of cancellation of customer contracts or discontinuance of trials, risks that the transaction will not close or, if it closes, will not realize the currently anticipated benefits, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, maintenance of intellectual property rights and other risks discussed in the Company's Form 10-K for the year ended December 31, 2014 and 10-Q for the quarter ended September 30, 2015 along with other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Cancer Genetics disclaims any obligation to update these forward-looking statements.
CONTACT: Media Relations Contact: Marie Michellod Cancer Genetics, Inc. 201-776-1983 Media@cgix.com Investor Relations Hans Vitzthum LifeSci Advisors, LLC. 212-915-2568 email@example.com
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