REHOVOT, Israel and JERSEY CITY, New Jersey, July 24 /PRNewswire-FirstCall/ -- Rosetta Genomics Ltd. (Nasdaq: ROSG), a leader in the development of microRNA-based diagnostics and therapeutics, announced today that it has successfully completed the acquisition of Parkway Clinical Laboratories Inc. ("Parkway"), a privately-held company owning a CLIA-certified lab located in Bensalem, Pennsylvania, for an aggregate purchase price of $2,900,000, consisting of $1,900,000 in cash and $1,000,000 of Rosetta's ordinary shares. An additional $300,000 will be payable upon the achievement of certain milestones. The lab owned by Parkway is an CLIA-certified clinical reference laboratory with an expected $2.7M in revenues and break-even operating income in 2008.
The acquisition is expected to allow Rosetta Genomics to expedite
development and validation of its microRNA-based diagnostic tests both in
the U.S. and worldwide. In addition, ownership of the CLIA-certified lab
will allow Rosetta Genomics to control the commercialization of its
diagnostics, including marketing, sales, and reimbursement strategy. As
previously disclosed, the first three of Rosetta Genomics' microRNA-based
tests expected to enter development and validation at Parkway's facilities
- Differentiating squamous from non-squamous non-small cell
lung cancer- This test is designed to differentiate squamous from
non-squamous non-small cell lung cancer (NSCLC) using a single
microRNA. The ability of physicians to accurately differentiate
squamous from non-squamous NSCLC is an important treatment guide.
Certain angiogenesis inhibitors for non-squamous NSCLC include a
black-box warning about substantially higher rates of severe or fatal
hemorrhage among patients with squamous NSCLC histology compared with
non-squamous NSCLC. In addition, several other targeted drugs for NSCLC
currently under development may require this sensitive differentiation.
- Differentiating mesothelioma from adenocarcinoma - This
differentiation is critical for optimal therapy, but is often difficult
to perform. Currently, there is no objective, standardized test to aid
pathologists in differentiating between the many possible tumors in
the lung and pleura. Based on several microRNA biomarkers, this test
is designed to separate mesothelioma from adenocarcinoma tumors
including lung adenocarcinoma and metastases to the lung or to the
- Identifying origin of metastases (CUP) - In 3%-5% of all new
cancer patients, clinicians cannot identify the origin of a patients'
tumor. This information is crucial for determining treatment type. As
demonstrated in a paper published by Rosetta Genomics and
collaborators in the April issue of Nature Biotechnology, Rosetta
Genomics has developed a panel of microRNA biomarkers potentially able
to identify approximately thirty cancer types. This test is designed
to assist clinicians to accurately identify the origin of tumors.
In addition, the company expects the following three tests to enter development during 2009-2010: response prediction to ovarian cancer treatment, predicting risk of gastric cancer recurrence, and differentiation of small cell from non-small cell lung cancer.
MicroRNAs (miRNAs) are recently discovered, naturally occurring, small RNAs that act as master regulators and have the potential to form the basis for a new class of diagnostics and therapeutics. Since many diseases are caused by the abnormal activity of proteins, the ability to selectively regulate protein activity through microRNAs could provide the means to treat a wide range of human diseases. In addition, microRNAs have been shown to have different expression in various pathological conditions. As a result, these differences may provide for a novel diagnostic strategy for many diseases.
About Rosetta Genomics
Rosetta Genomics (Nasdaq: ROSG) is a leader in the field of microRNA. Founded in 2000, the company's integrative research platform combining bioinformatics and state-of-the-art laboratory processes has led to the discovery of hundreds of biologically validated novel human microRNAs. Building on its strong IP position and proprietary platform technologies, Rosetta Genomics is working on the application of these technologies in the development of a full range of microRNA-based diagnostic and therapeutic tools, focusing primarily on cancer and various women's health indications.
Forward-Looking Statement Disclaimer
Various statements in this release concerning Rosetta's future
expectations, plans and prospects, including without limitation, statements
relating to the completion of the acquisition of Parkway by Rosetta and the
expected impact of the acquisition will have on the commercialization of
Rosetta's microRNA-based diagnostics, Parkway's expected revenues and
operating income for 2008, the role of microRNAs in human physiology and
disease, the potential of microRNAs in the diagnosis and treatment of
disease and the expected timing of the development and commercialization of
diagnostic tests using our microRNA technology 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 risks related to: Rosetta's
approach to discover microRNA technology and to work on the application of
this technology in the development of novel diagnostics and therapeutic
tools, which is unproven and may never lead to marketable products or
services; Rosetta's ability to fund and the results of further pre-clinical
and clinical trials; Rosetta's ability to obtain, maintain and protect the
intellectual property utilized by Rosetta's products; Rosetta's ability to
enforce its patents against infringers and to defend its patent portfolio
against challenges from third parties; Rosetta's ability to obtain
additional funding to support its business activities; Rosetta's dependence
on third parties for development, manufacture, marketing, sales, and
distribution of products; Rosetta's ability to successfully develop its
candidate tools, products and services, all of which are in early stages of
development; Rosetta's ability to obtain regulatory clearances or approvals
that may be required for its products and services; Rosetta's ability to
obtain coverage and adequate payment from health insurers for the products
and services comprising Rosetta's technology; competition from others using
technology similar to Rosetta's and others developing products for similar
uses; Rosetta's dependence on collaborators; and Rosetta's short operating
history; as well as those risks more fully discussed in the "Risk Factors"
section of Rosetta's Annual Report on Form 20-F for the year ended December
31, 2007, as filed with the Securities and Exchange Commission. 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.
|SOURCE Rosetta Genomics Ltd|
Copyright©2008 PR Newswire.
All rights reserved