UPDATE 1-Response Genetics inks deal with Glaxo, shares soar

Tue May 11, 2010 10:45am EDT

* Deal gives Glaxo rights to Response's technology

* Response to receive milestone payments

* Financial details not disclosed

* Response shares rise as much as 51 pct

May 11 (Reuters) - Diagnostic tests maker Response Genetics Inc (RGDX.O) and GlaxoSmithKline Plc (GSK.L) signed a deal that gives Glaxo rights to the U.S.-based firm's technology to assess certain gene mutations in tumor samples, sending Response Genetics' shares soaring.

Response Genetics, which develops tests to help physicians with treatment decisions for patients with non-small cell lung cancer, colorectal cancer and gastric cancer, will receive milestone payments as part of the non-exclusive, license agreement.

Financial details of the deal were not disclosed.

The company's technology allows the extraction of genetic information from diagnostic specimens fixed and stored in paraffin. Specific genetic mutations are correlated with the development of certain forms of cancer.

Shares of the company were up 31 percent to $2.81 in morning trade on Nasdaq. They touched a high of $3.25 earlier in the session, its highest since November 2008. (Reporting by Esha Dey in Bangalore; Editing by Prem Udayabhanu)