Response Genetics Buys Main Assets Of Pathwork Diagnostics

(RTTNews) - Response Genetics, Inc. (RGDX), a provider of molecular diagnostic tests for cancer, Monday announced the acquisition of Pathwork Diagnostics for $0.2 million cash and issuance of 500,000 common shares with a lock-up period through June 2014. The assets include Pathwork's FDA-cleared, Medicare-reimbursed test for the diagnosis of metastatic, poorly differentiated and undifferentiated cancer.

Response expects the deal to be accretive within its first full year of acquisition.

"Acquiring the assets of Pathwork Diagnostics adds proprietary, Medicare reimbursed content that we believe addresses the needs of both pathologists and oncologists, further expands both our technology and testing base, leverages our current infrastructure well and most importantly adds to the top line growth of our Dx business," said Thomas Bologna, Chairman and Chief Executive Officer of Response Genetics.