Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Response Genetics, Inc., a life sciences company founded in Los Angeles, California, in 1999 (originally Bio Type, Inc., before its rebranding in August 2000), focuses on creating, advancing, and commercializing pharmacogenomic tests. These diagnostic tools are crucial for informing cancer treatment decisions by assessing specific indicators within tumor tissue samples that predict a patient's response to therapy. The company provides an extensive array of testing services, primarily through its ResponseDX suite, covering various cancers such as non-small cell lung, colorectal, gastric, gastroesophageal, melanoma, thyroid, breast, and glioma, in addition to a Tissue of Origin test. Beyond these existing solutions, Response Genetics is committed to expanding its diagnostic offerings to encompass other tumor types, while also delivering both the technical execution and professional interpretation components of its testing services. Operating globally, with a significant presence in the United States and Europe, Response Genetics serves a wide range of clients including community oncologists, pathologists, medical practices, hospitals, and pharmaceutical enterprises, primarily through its internal sales force.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is undervalued on EV/EBITDA.