SOURCE: Radient Pharmaceuticals Corporation

May 25, 2010 08:45 ET

Radient Pharmaceuticals Announces First Quarter 2010 Financial Results; Provides Update on Onko-Sure™ Product Sales and Monetization of Its China-Based Subsidiary Jade Pharmaceuticals

TUSTIN, CA--(Marketwire - May 25, 2010) -  Radient Pharmaceuticals Corporation (NYSE Amex: RPC), a US-based pharmaceutical company specializing in the research, development and sales of In Vitro Diagnostic (IVD) cancer tests, announced today unaudited results and the filing of its Form 10-Q with the Securities and Exchange Commission ("SEC") for the fiscal year first quarter 2010.

Operational Re-cap:
Until the second quarter FY2009, Radient Pharmaceuticals was focused on the production and distribution of pharmaceutical products through its China-based subsidiary Jade Pharmaceuticals Inc. (JPI). In the second half of 2009, RPC's executive management team repositioned its business to focus solely on the development, manufacture and marketing of advanced IVD products, including its proprietary Onko-Sure™ IVD cancer test. The Company also repositioned various business segments in order to monetize the value of these assets either through new partnerships, separate IPO's or the sale of the assets which include (i) 98% ownership of JPI; (ii) 100% ownership of RPC's proprietary cancer vaccine therapy technology Combined Immunogene Therapy (CIT); and (iii) 100% ownership of RPC's Elleuxe™ brand of advanced skin care products based on a proprietary formulation that includes human placenta extract ingredients.

Currently, RPC is actively engaged in the research, development, manufacture, sale and marketing of Onko-Sure specifically in the United States, Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and other select worldwide markets. The Company manufactures and distributes Onko-Sure through its USFDA-licensed, GMP-approved manufacturing facility located at 2492 Walnut Avenue, Suite 100, in Tustin, California. The Company also maintains a current device manufacturing License issued by the State of California, Department of Health Services, Food and Drug Branch.

Onko-Sure IVD Cancer Test Kit Commercialization Plan:
For the first quarter of FY2010, RPC achieved net revenues from Onko-Sure product sales of approximately $37,000. This figure excludes approximately $103,000 in deferred distributor revenue, which is expected to be recorded as revenue when criteria under the Company's revenue recognition policy are met. RPC's first quarter FY2010 sales were below the Company's stated target of approximately $297,000 due to lower than expected sales from select distributors who did not meet minimum commitment requirements to retain exclusive territory rights. In order to mitigate this issue, the Company added an additional distribution partner for one territory and is currently evaluating others that have not met their forecasted minimum orders.

RPC believes this action, coupled with additional signed distribution contracts and hiring of a Director of Oncology, will enable RPC to meet its FY2010 forecast of approximately $7.6 million in Onko-Sure cancer test kit sales. The Company previously forecasted, and continues to expect, the majority of its Onko-Sure cancer test kit sales will be realized in the second half of FY2010.

Financing Initiatives:
In the first half of FY2010 RPC completed various convertible note and warrant purchase agreements that generated approximately $6.4 million in operating capital. Additionally, a small percentage of existing warrant holders exercised outstanding warrants which generated approximately $740,000 in incremental working capital to RPC.

JPI Monetization Plan:
In conjunction with JPI's management, RPC has established its monetization plan for its China-based subsidiary Jade Pharmaceuticals Inc. In accordance with the plan, JPI executive management intends to acquire a well-managed, China-based pharmaceuticals manufacturing and marketing company to oversee and manage day-to-day operations of JPI and its subsidiary JJB. Furthermore, the combined, broader-based pharmaceuticals business then intends to seek a financing and public listing in the U.S.

JPI has had active discussions with various companies that have indicated interest in merging with JPI; however no agreements have been reached to date. JPI's executive management anticipates it will complete a transaction of the type described above by year-end FY2010.

Q12010 Financial Results:
For the three-month period ending March 31, 2010, RPC reported revenues of approximately $37,000, as compared with corporate segmented revenues of approximately $23,000 in the first quarter of FY2009. RPC reported a comprehensive first quarter loss of approximately $2.60 million ($0.11 per share) in FY2010 compared to approximately $1.65 million ($0.12 per share) in FY2009. Approximately $870,000 of the first quarter FY2010 losses from operations were due to amortization of debt discount and accretion of debt issuance costs.

According to Douglas MacLellan, Chairman and CEO of Radient Pharmaceuticals, "We have truly experienced three consecutive difficult quarters. The Company's future prospects however, should not be judged on the merits of this transitional period. We believe we have now put in place a low risk path that will enable RPC to achieve profitability by the fourth quarter of fiscal year 2010. We remain confident in the near-and long-term prospects of the Company, including successful commercialization of our Onko-Sure cancer test kits and the monetization of JPI." MacLellan continued, "We have very reasonable ramp-up sales plans for Onko-Sure and continue to optimize our US commercial resources to support growth in targeted 2010 markets. In addition, as previously announced, we have contracted with a major research institution to present the research study for RPC's next-generation version of its Onko-Sure cancer test. When completed, this test is expected to broaden the utility claims of Onko-Sure."

Going Concern Qualification:
On April 15, 2010, RPC filed with the SEC an Annual Report on Form 10-K 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 Pharmaceuticals' Annual Report on Form 10-K for the year ended December 31, 2009.

RPC Contact Information:
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 our Onko Sure™ In Vitro Diagnostic cancer test. Our 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 detection; treatment strategy; and the monitoring of disease progression, prognosis, and diagnosis to ultimately improve outcomes for patients. Radient Pharmaceutical's current Onko-Sure™ cancer test is used to guide decisions regarding patient treatment, which may include decisions to refer patients to specialists, perform additional testing, or assist in the selection of therapy. 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.

Contact Information

  • RPC Contact:
    Kristine Szarkowitz
    Director-Investor Relations
    Email Contact
    (Tel: ) 206.310.5323