Response Genetics' net loss for the nine months ended September 30, 2011 was $1.8 million or a loss of $0.09 per share, compared with a net loss of $3.6 million, or a loss of $0.20 per share, for the same period last year.
Cash and Cash Equivalents
Cash and cash equivalents at September 30, 2011, were $2.5 million, compared to $4.1 million at December 31, 2010. During the third quarter, cash was used to fund existing operations and sales growth.
Third Quarter Corporate Development Highlights
Chief Executive Officer Search - Under the direction of the Board, the search for a permanent CEO has progressed, with a number of strong candidates identified.
Symposium at the 14th World Conference on Lung Cancer (the "WCLC") - At the WCLC in Amsterdam, Response Genetics sponsored the symposium, "Biomarker-Driven Prospective Clinical Trials." Presentations by key opinion leaders highlighted the clinical use of tumor molecular determinants to enhance patient benefit. Through efforts such as this, the Company is helping physicians individualize treatment for patients with advanced NSCLC.
Sales Force Expansion - Response Genetics continued to expand its national sales force to meet the demand for its ResponseDX(TM) tests, adding seven new sales people in the third quarter of 2011 for a total sales team of 21 individuals. The Company also expanded its infrastructure to support continued growth and meet expected demand.
Successful Implementation of Xifin Revenue Cycle Management System - Billing and collections were brought in-house as of July 1, 2011 to more effectively manage the Company's cash flow and reduce the risks associated with regulatory compliance. Through investments such as the Xifin system, all outgoing claims are "clean" and those received begin processing within 24 hours, allowing faster reimbursement and a reduced number of collection days.
Third Quarter Gross Margin and Revenue per Case - Gross margin for the third quarter of 2011 was 50 percent compared to 51 percent for the third quarter of 2010. For the third quarter of 2011, the average revenue per case was $1,414 compared to $1,175 in the third quarter of 2010. Gross margin is defined as revenues less cost of revenues.
only neg I see is the Contract rev from GSK which we know is up and down and irregular, and delayed payment has occurred in the past..."Pharmaceutical client revenue decreased 30.7 percent to $1.8 million, compared to $2.6 million in the third quarter of 2010."
...one bright spot is the revs per case are $1414 in Q-3 and RGDX reported vs $1350 per case in Q-2...the reduction in Gross margin from 58% to 50% is probably a fnc.increased cost of revs relative to the drop in contract revs from GSK! I like seeing that higher revs per case number indicating efficiency anddocs ordering a greater panel size of tests per case!
the DX side of the business continues to grow, but slower than it should do to restructuring salesforce. Adding the 7 new reps will begin to help in Q4 and Q1 of 2012. Pharma side is lumpy. Other than that, they need to get a real top notch ceo real soon.