Response Genetics Inc. sought chapter 11 protection with plans to sell its cancer diagnostics business to a rival for $14 million, subject to higher bids at a court-overseen auction, Dow Jones Daily Bankruptcy Review reported today. The Los Angeles company on Sunday filed its chapter 11 petition in the U.S. Bankruptcy Court in Wilmington, Del., citing declining reimbursement rates for medical tests as being among the setbacks that contributed to its financial distress. Cancer Genetics Inc. would serve as stalking-horse bidder at an auction of nearly all of Response Genetics' assets, court papers show. Cancer Genetics is offering $7 million in cash and $7 million worth of its shares as part of its bid, in addition to its pledge to take on certain liabilities.
