Within the “diagnostics and tools” track at the Rodman and Renshaw Conference here are two interesting genomics companies that presented.
Rosetta Genomics Ltd. (ROSG, $1.25) ,Market Cap $21M, Sh.Out. 16.5M
Rosetta is an Israeli Company focused in development of microRNA-based diagnostics (miRview) for various cancers as well as for the identification of the origin of the primary tumor of metastases(mets) and the differentiation of squamous(squamous) and mesothelioma (meso) cancers. MicroRNA’s (miRNAs) are a recently discovered group of short (21-23 nucleotides ) tissue specific, non-coding genes which regulate the expression of other genes. miRNA’s are potentailly a new class of hghly sensitive and specific biomarkers that can accurately identify cancer, predict outcomes and guide treatment. Revenues for six months ending June 30 were $70k with losses of $7.8M in from continuing operations. The Company needs to raise cash for marketing and developing its pipeline and is seeking strategic partners for companion Dx. The cash and cash equivalents position as of June 30 was about $7.7M.
In April 2009 the Company announced a Licensing and Collaboration with Prometheus Labs including U.S. marketing rights for the three miRview tests. There is currently a dispute on the amount of funding that Prometheus has to provide to ROSG.
In the current pipeline is a second generation mets miRview to include a larger panel of antigens and an miRview bladder test for risk stratification of bladder cancer. Also in the pipeline are 10 GEN 3 body fluids based tests with applications in the neurogenerative, cardiovascular and women’s health areas. Any validated assays would most likely be marketed as LDT’s(lab developed tests) in their 6000 ft/2 CLIA lab that is expected to be CLIA certified this year. The Company has extensive IP under development in MicroRNAs.
-more news on miRNA and Rosetta-
Scientists Make Headway with miRNA
Response Genetics (RGDX, $2.38), Market Cap $43.5, Sh.Out. 17.3
Response Genomics is an emerging molecular diagnostic, biomarker and pharmacogenomic test developer for use in the treatment of cancer. The objective is personalized therapy for each patient. It currently offers ResponseDX test suites to oncologists for non-small cell lung cancer, colorectal cancer, and gastric-esophageal cancers. The test platform measures RNA expression of ERCC1,TS and RRM1 with RT/PCR and utilizes PCR analysis of DNA to detect EGFR,BRAF and KRAS mutational status. The ResponseDX platform is proprietary including the paraffin embedded sample prep. Collaborations with drug companies for test validation and optimizing therapy such as the recent GlaxoSmithKline agreement are a key strategy of the Company. All tests are performed under CLIA certification in various States. The tests are reimbursed by CPT codes in the range of $900-$1200 /test.
The Company recently settled a Proxy contest on Sep 17 with the Special Situations Fund and agreed to, among other things. a revised slate of nine Director nominees that will be voted on the Dec 1,2010 stockholder meeting. The Company has 60 full time employees.
Net (unaudited) Revenues for the last six months ended June 30,2010 were $9.340M compared to $3.435 for the previous period in 2009, a 172% increase. Total losses for six mos. ended 2010 were $2.533M compared to a loss of $5.628M in 2009. Cash and cash equivalents were $6.6M.