SOURCE: Radient Pharmaceuticals Corporation

November 24, 2009 11:40 ET

Radient Pharmaceuticals Announces Third Quarter 2009 Financial Results

TUSTIN, CA--(Marketwire - November 24, 2009) - Radient Pharmaceuticals Corporation (NYSE Amex: RPC), a US-based pharmaceutical company that specializes in In Vitro Diagnostic (IVD) cancer tests and cell-renewing skin care products, announced today unaudited results and the filing of its Form 10-Q with the Securities and Exchange Commission ("SEC") for fiscal third quarter FY2009.

"We have truly experienced two difficult quarters, yet Radient Pharmaceuticals' prospects cannot be judged on this transitional period. We believe we have now put in place a low risk path with the goal of achieving profitability by midyear 2010. Successfully resolving our operational and financial challenges we've faced with our China operations has required time and resources. We remain confident in the near-term prospects of our US-based business, specifically with the commercialization of both Onko-Sure™ & Elleuxe™ and the monetization of JPI, are anticipate profitable operations by mid-year 2010," commented Douglas MacLellan, Chairman and CEO, Radient Pharmaceuticals.

Financing Initiatives

Radient Pharmaceuticals is aggressively working and well down the path to securing additional capital to support its corporate operations. The Company is currently engaged in active discussions with private investors and institutions to complete one or more transactions to raise approximately $1-3 million in working capital which will be used to specifically fund the commercialization of Radient Pharmaceuticals' Onko-Sure™ IVD cancer test and Elleuxe™ cell-renewing skin care product line. In addition, the Company is in discussions with investors interested in Radient Pharmaceuticals' China-based operations.

MacLellan continued, "With over $28 million in gross assets and approximately $17 million in shareholder equity Radient Pharmaceuticals has a very attractive and strong asset base. We understand the limitations of our current cash flow position, a situation faced by many companies in our sector. We are highly confident in our business strategy, ability to secure working capital, our product commercialization plan, and the overall market demand for our flagship products. For investors understanding current market challenges and the unique value proposition we offer, Radient Pharmaceuticals offers a compelling and winning investment opportunity."

JPI/JJB Deconsolidation

Radient Pharmaceuticals' executive management believes the Company's China-based subsidiary, Jade Pharmaceuticals Inc. (JPI), continues to offer a promising future and is working in collaboration with its China-based management team to gain the best valuation and exit possible for this strategic asset. The Company completed the process of deconsolidating JPI on its financial statements from Radient Pharmaceuticals and has received a detailed valuation for JPI from an independent third-party valuation firm. Based on this valuation, Radient Pharmaceuticals has accounted for JPI as a $20.5 million asset on its balance sheet. JPI is being re-classified as a privately-held company, so the $20.5 million valuation represents a 40% discount to its current value as a publicly traded company. Radient Pharmaceuticals is assessing various monetization paths for JPI that include:

    1. Raise additional capital for Radient Pharmaceuticals'
       China-based operations by completing one or more equity
       private placements during the fourth quarter of FY2009.
    2. Seek a public listing on the Hong Kong or Shenzhen Growth
       Enterprise Market ("GEM") during the first half of 2010.
       Concurrently, Radient Pharmaceuticals' executive management
       team and Board of Directors are in agreement with JPI's
       management recommendations of a "spin-off" strategy and
       anticipate working with JPI to complete development plans
       with the goal of delivering significant returns for Radient
       Pharmaceuticals and its shareholders.
    3. The Company anticipates it may be able to sell off a portion
       or all of its ownership in JPI/JJB during the next 12 months;
       exit from its investment at or after any public listing;
       retain an equity stake in JPI/JJB if ownership is compelling;
       or position the subsidiary as a potential buyout target based
       on JPI/JJB's business and brand recognition.

Onko-Sure™ & Elleuxe™ Product Commercialization

As previously announced, Radient Pharmaceuticals began commercializing its regulatory-approved Onko-Sure™ IVD cancer test this year and expects to initiate sales of its Elleuxe™ high-end skin care product line in 2010. The Company continues to gain market acceptance with its IVD division, which executed distribution partnerships with Precision Diagnostics Laboratories Inc., GenWay Biotech, Inc., Grifols International and Tarom Applied Technologies, Ltd. Radient Pharmaceuticals anticipates sales of Onko-Sure™ to significantly expand in FY2010 based on the completion of additional international distribution agreements currently underway. Successful product commercialization continues to be dependent on securing additional financing by year-end.

Cost Controls

Radient Pharmaceuticals continues to take proactive measures and is on track to reduce over $1.5 million of general and administrative expenses in FY2009 with the goal of increasing operational efficiencies and managing the business in an increasingly prudent manner. These cost containment activities include increased monitoring of discretionary spending and an anticipated 30% reduction in overall 3rd party service provider fees for accounting, legal, investor relations, and financial advisory and independent director services. Currently Radient Pharmaceuticals monthly selling, general, and administrative expenses have been reduced to approximately $214,000. These expenses are expected to be offset as the sales of Onko-Sure™ ramp-up.

Q309 Financial Results

For the three-month period ending September 30, 2009, Radient Pharmaceuticals reported revenues of approximately $2.7 million compared with revenues of $8.2 million in the third quarter of FY2008. Radient Pharmaceuticals reported a comprehensive loss of approximately $5.0 million ($0.31 per share) in the third quarter of FY2009. This loss includes a loss of approximately 2.0 million attributable to the deconsolidation of JPI. While net revenues for the Company's Onko-Sure™ IVD cancer test increased by approximately 180% in the third quarter of FY2009 as compared to the same period in 2008, net revenues generated from JPI decreased significantly. This was primarily due to the following:

--  Trailing effects of the second quarter sale of Yangbian Yiqiao Bio-
    Chemical Pharmacy Company.
--  The lack of sales of the Goodnak and HPE-based solutions due to the
    mandatory 5-year cGMP recertification by the SFDA of JJB's small injectible
    line.  Although the small injectible line received cGMP recertification in
    the second quarter of 2009, the lack of qualified distributors is hampering
    sales.
    

On a comparable basis, Radient Pharmaceuticals reported a loss of $0.31 per share during the third quarter of FY2009, as compared to a $0.02 per share loss in the third quarter of FY2008. Gross profits for the third quarter FY2009 decreased to approximately $1.1 million compared to approximately $4.3 million for the same period in FY2008. Selling, general, and administrative expenses were approximately $3.3 million for the three months ended September 30, 2009 as compared to approximately $2.5 million for the same period in FY2008. Average selling, general, and administrative expenses were reduced to $214,000 excluding any extraordinary items or expenditures, including payments to Mayo Clinic for Onko-Sure™ clinical trials or expenditures related to further development of the CIT technology, as no significant expenditures are anticipated other than recurring legal fees associated with patent protection for CIT.

MacLellan continued, "We have very reasonable ramp-up sales plans for Onko-Sure™ and Elleuxe™ and continue to optimize our US commercial resources to support growth in our current markets and those we are targeting for FY2010. In addition, we plan to advance product development for a next-generation version of the Onko-Sure IVD cancer test, which could enable us to broaden the utility of this important oncology product. We have an exciting future ahead and are intently focused on Radient Pharmaceuticals' near term success."

Going Concern Qualification

On April 15, 2009, AMDL filed with the SEC an Annual Report on Form 10-K in which included an audit opinion with a "going concern" explanatory paragraph which expresses doubt, based upon current financial resources, as to whether AMDL can meet its continuing obligations without access to additional working capital. The Company intends to raise additional capital and pursue expense reductions to ensure its ongoing financial viability. This disclosure is in compliance with the NYSE Alternext US 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 AMDL's Annual Report on Form 10-K for the year ended December 31, 2008.

Conference Call

The Company will hold a conference call at 1:30 p.m. PST/4:30 p.m. EST on Monday, November 30, 2009 to discuss third quarter FY2009 results. Domestic listeners may access the call by dialing 1.877.360.1705 or 1.706.902.3245 for international callers with both US and international callers using access code 43792236. An audio cast will also be available through Radient Pharmaceuticals' website at www.radient-pharma.com. A replay of the call will be available through December 7, 2009. For additional information on Radient Pharmaceuticals and its portfolio of products visit the Company's corporate website at www.radient-pharma.com.

About Radient Pharmaceuticals:

Headquartered in Tustin, California, Radient Pharmaceuticals Corporation is an integrated pharmaceutical company devoted to the research, development, manufacturing, and marketing of diagnostic, and premium skin care products.

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.

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