PHILADELPHIA, PA and REHOVOT, ISRAEL / ACCESSWIRE / September 8, 2017 / Rosetta Genomics Ltd. (ROSG), a genomic diagnostics company that improves treatment decisions by providing timely and accurate diagnostic information to physicians, announces that it has entered into a definitive agreement to sell all of its ownership interest in Cynogen, Inc. (d/b/a PersonalizeDx (PDx)) to Pragmin Prognosis Inc. The sale of PDx is expected to close within the next several weeks.
PDx is a molecular diagnostics and services company serving community-based pathologists, urologists, and oncologists with tests for various cancers, including bladder, prostate, lung, breast, and hematological malignancies, offered through a CLIA laboratory based in Lake Forest, California.
The purchase price is $2.875 million in cash with $1.25 million to be paid at closing and the balance of the payments to be made over various time intervals.
''We continue to focus our commercial efforts on our RosettaGX Reveal™(Reveal) assay for classifying indeterminate thyroid nodules (ITNs) and believe now is the right time to divest the PDx business in order to further invest in our commercial efforts for Reveal, which continues to make inroads in the very attractive market for classifying ITNs,'' stated Kenneth A. Berlin, President and Chief Executive Officer. ''This divestiture will provide us with non-dilutive cash and allows us to reduce operating expenses in order to permit the Rosetta organization to truly focus on our leading Reveal test,'' noted Mr. Berlin.
About Rosetta Genomics
Rosetta is pioneering the field of molecular diagnostics by offering rapid and accurate diagnostic information that enables physicians to make more timely and informed treatment decisions to improve patient care. Rosetta has developed a portfolio of unique diagnostic solutions for oncologists, urologists, endocrinologists, cytopathologists and other specialists to help them deliver better care to their patients. RosettaGX Reveal™, a Thyroid microRNA Classifier for classifying indeterminate thyroid nodules, as well as the full RosettaGX® portfolio of cancer testing services are commercially available through the Company's Philadelphia, PA- and Lake Forest, CA-based CAP-accredited, CLIA-certified labs.
About Pragmin Prognosis
Pragmin Prognosis is a business group consisting of highly experienced scientists and entrepreneurs in the field of healthcare and clinical diagnostics offering a wide variety of clinical diagnostics solutions ranging from phamacogenomics to toxicology with a track record of driving revenue growth in companies in the healthcare industry.
Forward-Looking Statement Disclaimer
Various statements in this release concerning Rosetta's future expectations, plans and prospects including, but not limited to statements relating to our belief that now is the right time to divest the PDx business, containing the words ''expect,'' ''believe,'' ''will,'' ''may,'' ''should,'' ''project,'' ''estimate,'' ''anticipated,'' ''scheduled,'' and like expressions, and the negative thereof, constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties, including, but are not limited to the following: we will require substantial additional funds to continue our operations and, if additional funds are not available, we may need to significantly scale back or cease our operations; we have a history of losses and may never be profitable; if we are unable to expand sales of our diagnostic tests in the United States, it would have a material adverse effect on our business and financial condition; if we are unable to find profitable strategic alternatives for our PersonalizeDx diagnostic testing and services business, it would have a material adverse effect on our business and financial condition; the intensely competitive biotechnology market could diminish demand for our tests and products; the market may not be receptive to any diagnostic tests or therapeutic products using our microRNA technology; we currently have limited sales, marketing or distribution experience and may in the future depend significantly on third parties to commercialize microRNA-based diagnostic tests or therapeutic products we may develop; we are largely dependent upon our distributors for the success of commercialization of our current diagnostic tests; health insurers and other third-party payors may decide not to cover our diagnostic products or may provide inadequate reimbursement, which could jeopardize our commercial prospects; because of Medicare billing rules, we may not receive reimbursement for all tests provided to Medicare patients; if we fail to comply with our obligations under any licenses or related agreements, we could lose license rights that may be necessary for developing microRNA-based diagnostics and therapeutics; if we fail to comply with the complex federal, state, local and foreign laws and regulations that apply to our business, we could suffer severe consequences that could materially and adversely affect our operating results and financial condition; we contract with a single manufacturer for the purchase of microarray chips for certain tests, and the failure of this manufacturer to supply sufficient quantities on a timely basis could have a material adverse effect on our business; and other risk factors discussed under the heading ''Risk Factors'' in Rosetta's most recently filed Annual Report on Form 20-F, as filed with the SEC. In addition, any forward-looking statements represent Rosetta's views only as of the date of this release and should not be relied upon as representing its views as of any subsequent date. Rosetta does not assume any obligation to update any forward-looking statements unless required by law.
Various statements in this release concerning Rosetta's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those risks more fully discussed in the ''Risk Factors'' section of Rosetta's most recently filed Annual Report on Form 20-F, as filed with the SEC. In addition, any forward-looking statements represent Rosetta's views only as of the date of this release and should not be relied upon as representing its views as of any subsequent date. Rosetta does not assume any obligation to update any forward-looking statements unless required by law.
Ken Berlin, President & CEO
LHA Investor Relations
Anne Marie Fields
SOURCE: Rosetta Genomics Ltd.