Response Biomedical Corp (RPBIF) SEC Filing 10-Q Quarterly report for the period ending Friday, September 30, 2016

Exhibit 99.1

Response Biomedical Corp. Announces Second Quarter 2016

Financial Results and Filing of Definitive Proxy Statement for Special Meeting of Shareholders

VANCOUVER, British Columbia – August 12, 2016 - Response Biomedical Corp. (“Response” or “the Company”) (TSX: RBM, OTC: RPBIF) a commercial stage in-vitro medical device company with products for the laboratory and point of care markets, today reported financial results for its second quarter and six months ended June 30, 2016. Total revenue for the second quarter of 2016 was $1.3M and totaled $3.5M for the first half of 2016, a reduction of 69% and 55% respectively relative to the the comparable periods of 2015. While our sales to our China distributors have suffered during the transition to our new distribution network, our sales in the rest of the world continue to see year over year growth at an average rate of 16%.

Sales to the Company’s national distributor in China were nominal in the second quarter and down 78% from the comparable six month period in 2015, as this distributor continues to work through their excess inventory. In addition, the Company recently signed a new distribution contract with Shanghai Runda Medical Technology Co., Ltd. (“Runda”) who is working to increase our sales within our existing Chinese markets and expand into new territories in China.

Gross margin on product sales was 37% for the quarter and 41% for the first half of 2016 compared to 41% and 37% respectively in the comparable periods of 2015. Operating expenses decreased approximately 19% in the quarter and 17% for the first half of 2016 primarily due to reduced payroll and administrative expenses as a result of ongoing cost reduction efforts.

GAAP net loss for the first quarter of 2016 was ($1.3 million) or ($0.13) per share and was ($2.6 million) or ($0.26) per share for first half of 2016. Adjusted EBITDA was ($674,000) and ($995,000) for the second quarter and first half of 2016 respectively compared with Adjusted EBITDA of $633,000 and ($22,000) in the comparable periods in 2015. 

Response also announced that it has filed its definitive Proxy Statement related to the Special Meeting of Shareholders to be held at 11:00 a.m. (Pacific Time) on September 16, 2016 at the Company’s head office in Vancouver, B.C. The purpose of the Special Meeting is to approve the previously announced arrangement agreement (the “Arrangement Agreement”) with 1077801 B.C. Ltd., a company jointly owned by OrbiMed and Runda, which will acquire all of the issued and outstanding common shares of Response for cash consideration of $1.12 per Response Share (except in the case of certain rollover shareholders who will instead receive shares of 1077801 B.C. Ltd. on a 1 for 1 basis) by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia).

For a further discussion of the Company’s financial results for the three and six months ended June 30, 2016, please refer to the Company’s consolidated financial statements and related Management Discussion and Analysis. For more information on the Arrangement Agreement please refer to the Company’s Proxy Circular for our Special Meeting of Shareholders. Both documents can be found at www.responsebio.com, SEDAR (Canada) www.sedar.com or EDGAR (U.S.) www.sec.gov/edgar/searchedgar/webusers.htm. Information at these sites is typically available within 72 hours of the distribution of the news release.