Radient Pharmaceuticals Announces Business Update and Third Quarter FY2010 Financial Results

November 23, 2010 |

7 min read

TUSTIN, CA--(Marketwire - November 22, 2010) - Radient Pharmaceuticals Corporation (RPC) (NYSE Amex: RPC) announced today its business update, unaudited results and filing of its Form 10-Q with the Securities and Exchange Commission (“SEC”) for the third quarter 2010.

Shareholder Meeting:
Douglas MacLellan, Chairman and CEO, stated, “First, the good news is that RPC is on schedule to hold its annual shareholder meeting on December 3rd, 2010, where we anticipate shareholder approval of various debt financings and conversion of this debt into equity. Based upon shareholder approval of proposals outlined in the proxy, RPC will be positioned to exchange up to $28,654,000 in various debt obligations for shares of common stock.”

Q3 Financial Results:
For the three-month period ending September 30, 2010, RPC reported revenues of approximately $34,446 compared with revenues of approximately $2.7 million in the third quarter of FY2009. RPC reported a comprehensive third quarter loss of approximately $11.9 million ($0.39 per share) in the third quarter of FY2010, (of which approximately $11.5 million was due to interest expenses associated with our various debt financings), compared to approximately $5 million ($0.31 per share) for the same period in 2009. Gross profits for the third quarter FY2010 decreased to approximately $27,749 compared to approximately $1.1 million for the same period in FY2009. Selling, general, and administrative expenses were approximately $2.3 million for the third quarter of 2010 as compared to $3.3 million for the same period in FY2009, decreasing by approximately $1 million.

Mr. MacLellan continued, “Clearly RPC’s third quarter results are not memorable, however, we are moving into the fourth quarter with escalating Onko-Sure® sales and the implementation of our JPI monetization plan. We are building the foundational structure for a solid and profitable business, continue to focus on strong cost controls, and remain highly optimistic about RPC’s long-term business prospects.”

Onko-Sure Sales:
Mr. MacLellan also stated, “We expect Onko-Sure® sales to steadily increase as the year closes. RPC anticipates achieving cash flow positive operations during the month of December and profitable operations are anticipated by the second quarter of 2011. Based on the Company’s 2011 business plan, RPC anticipates it will achieve approximately $13.33 million in gross revenues in sales of its Onko-Sure® IVD cancer test over the next 12 months. This projection is based on existing and anticipated distribution agreements and having adequate capital to execute RPC’s business model.”

Q3 FY2010 Business Progress:
In the third quarter FY2010 RPC made marked progress executing on key business objectives that included increasing market awareness for RPC’s Onko-Sure® IVD cancer test, signing key product distribution agreements and initiating clinical trial work for the next generation version of Onko-Sure®. The Company recognizes the largest hurdle in accelerating product sales lies in driving mass market awareness and acceptance across the healthcare segment (physicians, oncologists, clinicians, consumers, patients and reference laboratories) and is executing aggressive marketing programs in partnership with more than 15 distribution and CLIA-certified Clinical Laboratory Improvement Amendment) laboratories in the US and abroad. Marketing efforts include direct-to-consumer outreach programs, participation in industry-specific events (ASCO, AACC, NCCN, etc.), published research, advertising, direct outreach to hospitals and clinics, marketing communications, website development and sales collateral.

JPI Monetization Plan:
In conjunction with JPI’s management, RPC has moved forward with its monetization plan for its China-based subsidiary Jade Pharmaceuticals Inc. In accordance with the plan, JPI executive management has issued a letter of intent to acquire Shanxi BaoTai Pharmaceutical Co., Ltd. (BaoTai), a privately owned pharmaceutical manufacturing company located in Taiyuan China, through a nontaxable merger of business assets into a single formidable enterprise focused on developing, manufacturing and commercializing novel, high-growth cancer-centric pharmaceutical products. JPI and BaoTai are currently engaged in due diligence for the proposed merger and anticipate that all closing conditions will be satisfied or waived, and the merger shall be effected during Q2 of 2011. As part of this merger plan, JPI anticipates it will also complete a reverse merger and $10 million financing and then seek listing on the New York Stock Exchange “AMEX”.

Q3 FY 2010 Business Milestones:

August 12, 2010 -- Radient Pharma appoints Gary Giarratano as Director of North American Sales and Marketing
August 12, 2010 -- Radient Pharma to Present its Onko-Sure® In Vitro Diagnostic Cancer Test at Vietnam Medi-Pharm Expo August 108-21, 2010
August 16, 2010 -- Radient Pharma strengthens Manufacturing Management; Hires Tenured Director of Onko-Sure® IVD Cancer Test Kit Manufacturing
August 17, 2010 -- Radient Pharma Announces Second Quarter 2010 Financial Results; Anticipates 4^th Quarter Profitability
August 26, 2010 -- Radient Pharma Provides Domestic and International Target Market Details for its Onko-Sure® IVD Cancer Diagnostic Test
August 31, 2010 -- Radient Pharma Resumes Collaboration to Advance Its Onko-Sure® In Vitro Cancer Test in the US
September 28, 2010 -- Radient Pharma Signs 5-Year Exclusive Distribution Agreement for its Onko-Sure® Cancer Test in Vietnam, Cambodia and Laos
October 7, 2010 -- Radient Pharma and Provista Life Sciences Announce New Blood Test for Lung Cancer
October 19, 2010 -- Radient Pharmaand Gaur Diagno Launch Cancer Education and Screening Program in India
October 25, 2010 -- Crystal Research Associates LLC Issues Executive Information Overview (EIO) of Radient Pharmaceuticals
October 28, 2010 -- Radient Pharma Launches New Investor Video Channel

Going Concern Qualification:
On September 24, 2010, RPC filed with the SEC an Annual Report on Form 10-K/A that included an audit opinion with a “going concern” explanatory paragraph which expresses doubt, based upon current financial resources, as to whether RPC can meet its continuing obligations without access to additional working capital. The Company has raised additional capital and continues to pursue expense reductions to ensure ongoing financial viability. This disclosure is in compliance with the NYSE AMEX Company Guide Rule 610(b) requiring a public announcement of the receipt of an audit opinion that contains a going concern qualification and does not reflect any change or amendment to the consolidated financial statements as filed. Further information regarding the going concern qualification is contained in Radient Pharmaceutical’s Annual Report on Form 10-K/A for the year ended December 31, 2009.

For additional information on Radient Pharmaceuticals, ADI and its portfolio of products visit the Company’s corporate website at www.Radient-Pharma.com. For Investor Relations information contact Kristine Szarkowitz at IR@Radient-Pharma.com or 1.206.310.5323.

About Radient Pharmaceuticals:
Headquartered in Tustin, California, Radient Pharmaceuticals is dedicated to saving lives and money for patients and global healthcare systems through the deployment of its FDA-cleared In Vitro Diagnostic Onko-Sure® Test Kits for colon-rectal cancer recurrence monitoring. The company’s focus is on the discovery, development and commercialization of unique high-value diagnostic tests that help physicians answer important clinical questions related to early disease-state detection, treatment strategy and the monitoring of disease progression or recurrence. To learn more about our company, people and potentially life-saving cancer test, visit www.radient-pharma.com.

Forward Looking Statements:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this document include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company’s operations, markets, services, products, and prices. With respect to Radient Pharmaceuticals Corporation, except for the historical information contained herein, the matters discussed in this document are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.