SOURCE: Radient Pharmaceuticals Corporation

Radient Pharmaceuticals Corporation

December 15, 2010 08:45 ET

Radient Pharmaceuticals' China-Based Subsidiary Jade Pharmaceuticals Inc. Moves Forward With Acquisiton of Shanxi BaoTai Pharmaceutical Co. Ltd.

TUSTIN, CA--(Marketwire - December 15, 2010) - Based upon recent executive meetings between RPC (NYSE Amex: RPC) and its China-based subsidiary Jade Pharmaceuticals Inc. (JPI), and Shanxi BaoTai Pharmaceutical Co., Ltd. (BaoTai) -- a privately owned pharmaceutical manufacturing company located in Taiyuan, China -- RPC announced today JPI and BaoTai are proceeding to work towards a non-taxable merger of business assets with a revised transaction schedule. The transaction combines the strengths of JPI and BaoTai, two highly successful Chinese pharmaceutical companies, into a single formidable enterprise focused on developing cancer-centric products recognized for quality, branded product names and technical leadership.

Through the non-binding Letter of Intent (LOI) executed between the parties in July 2010, and assuming all closing conditions are satisfied or waived, this transaction is anticipated to close in mid-June 2011 as a merger structured to qualify as a tax-free reorganization. Upon completion of the merger, BaoTai's shareholders will receive shares of JPI common stock based on certain to be determined exchange ratios.

In the near term, JPI expects to complete a bridge financing to fund expenses associated with an anticipated merger between the combined entities and a public company. After completing the acquisition of BaoTai and the bridge financing, JPI intends to finalize a merger with a public company; and together, the two organizations hope to list all public shares on the New York Stock Exchange (NYSE) Amex.

As previously noted by RPC Chairman and CEO Douglas MacLellan, "These transactions are an important step in JPI's monetization strategy. JPI's primary goal is to build a high-growth business focused on delivering novel cancer-centric pharmaceutical products. In doing so, this business can take the leadership position as the only publicly-listed, China-based pharmaceutical company addressing this important market."

MacLellan continued by stating, "JPI is China's #2 provider of Domperidone -- an anti-emetic used to prevent nausea and vomiting caused by chemotherapy treatment and/or other medications given to patients. Annual Domperidone sales in China are estimated to be $250 million at the patient level, and approximately $125 million at the wholesale level, with an annual growth rate of 15%. We believe the combined companies will be in a strong position to gain at least 50% of the Chinese Domperidone market within the next 3 years. In addition, both companies have a solid product pipeline that should enable them to introduce a minimum of five additional cancer-centric products to market -- each of which has the potential to generate $50 million in gross revenues by FY2015."

RPC owns approximately 98% of JPI, which is a China-based pharmaceutical company engaged in the manufacture and distribution of generic and homeopathic pharmaceutical products. JPI operates a wholly-owned Chinese subsidiary, Jiangxi Jiezhong Bio-Chemical Pharmacy Company Limited (JJB). The closing of the acquisition is subject to customary closing conditions, including shareholder approval and securing satisfactory legal and operational due diligence by both companies; closing is also conditioned upon receipt of any necessary government approvals regarding JPI's ability to acquire the shares at issue. JPI and BaoTai have ninety days to complete due diligence and agree to close the acquisition within the following ninety days, unless both parties mutually agree to extend the closing date for the purposes of receiving required shareholder approval. If the conditions to be satisfied are not fully met in a timely fashion, the BaoTai acquisition, and therefore the subsequently contemplated transactions, may not occur.

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.

Contact Information

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