Stock Alert for Radient Pharmaceuticals Corp. (RPC) " />

Stock Alert for Radient Pharmaceuticals Corp. (RPC)

Radient Pharmaceuticals Corp. (RPC) is a Tustin, Calif.-based company focused on the discovery, development and commercialization of diagnostic tests that help physicians answer clinical questions related to early disease-state detection, treatment strategy and the monitoring of disease progression or recurrence. The Company offers its FDA-cleared In Vitro Diagnostic Onko-SureTest Kits for colon-rectal cancer recurrence monitoring.

RCP was incorporated in 1988.  It has two subsidiaries: AMDL Diagnostics Inc., which is also located in Tustin, California; and Jade Pharmaceuticals Inc., which is located in Shenzhen, China.

Share Statistics (22-Feb-11) FY

2008

FY

2009

%

Chg

Q3

2009

Q3

2010

%

Chg

Symbol RPC Revenue, $Mn 23.77 8.63 -63.7% 2.71 0.03 -98.9%
Current price $0.73 Gross marg. 2.2% 37.9% 1622.7% 40.2%
52wk Range: $0.21-$2.59 Oper. margin -118.1% -9697.9%
Avg Vol (3m): 5,432,170 Net margin 5.0% -192.6% -3952.0% -189.3%
Market Cap. 26.83M
Shares Outstanding 36.76M EPS, $ -0.05 -0.67 1240..0% -0.24 -0.36 50.0%

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of RPC added $0.06, or 8.96%, to close at $0.73 Monday.  Approximately 11.08 million shares have traded hands Tuesday compared with the stock’s average daily volume of about 3.64 million shares. RPC has so far reached a 52-week high of $2.59, its 52-week low being $0.21.  It is currently trading below its 50-day moving average of $0.82 and above its 200-day moving average of $0.64. Market capitalization currently stands at $26.84 million and it has 36.76 million outstanding shares.

Late last month, RPC announced the signing of a definitive agreement for the private sale of Convertible Notes (Note) and Warrants (Warrant) in the original principal amount of $8.4 million and the right to purchase RPC common stock. The Company said it plans to use the net proceeds from the Note for general corporate purposes, including activities related to the long-term commercialization of its Onko-Sure in vitro diagnostic (IVD) cancer test. The $8.4 million of Note issued pursuant to this transaction has an 11-month term and will be initially convertible in whole or in part into shares of RPC common stock at the conversion price equal to $0.60 per share, subject to adjustment. Each buyer will pay $888.88 for each $1,000.00 of principal amount of Notes and related Warrants to be purchased at closing.

“This financing, when combined with the previously announced ongoing and anticipated debt conversions and exchanges, will put RPC in a dramatically improved financial position that allows for the rapid commercialization of our Onko-Sure® IVD cancer test,” said RPC chairman and CEO Douglas MacLellan.  “It also reflects the strong support from RPC investors that believe in the potential of our Onko-Sure IVD cancer test and have confidence in the Company’s management team and business strategy.

Two days later, RPC said it has completed the private sale of Convertible Notes (Note) and Warrants (Warrant) financing.  The Company has received approximately $7.5 million in gross proceeds pursuant to the sale of convertible notes pursuant to the securities purchase agreement with net proceeds from the financing of approximately $6.82 million.

Visit RPC at www.radient-pharma.com

Financial Summary

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 fiscal year 2009. RPC reported a comprehensive third-quarter loss of approximately $11.9 million ($0.39 per share) in the third quarter of fiscal year 2010, (of which approximately $11.5 million was due to interest expenses associated with the Company’s various debt financings), compared to approximately $5 million ($0.31 per share) for the same period in 2009.

Gross profits for the third quarter fiscal y ear 2010 decreased to approximately $27,749 compared to approximately $1.1 million for the same period in fiscal year 2009. 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 fiscal year 2009, decreasing by approximately $1 million.

Source: www.radient-pharma.com


Financial Strength (22-Feb-2010) Company Industry Sector S&P 500
Quick Ratio (MRQ) 0.06 2.23 1.77 0.51
Current Ratio (MRQ) 0.06 2.92 2.20 0.82
LT Debt to Equity (MRQ) 16.88 15.83 107.37
Total Debt to Equity (MRQ) 26.71 20.65 151.63
Interest Coverage (TTM) -3.72 4.26 2.58 15.78

Source: Reuters.com, SEC Filings.

Analyst Consensus

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=RPC.A

Technical Analysis

Source: http://stockcharts.com

RPC is trading above its 20-day moving average. While this is normally considered to be a bullish sign, the moving average is downward sloping, which means that investors have been liquidating shares during this time period and tempers the bullishness of the signal.

RPC is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

RPC’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
Feb22-2011 symbol Share, $ $ Mn 2010 2011 2010 2011
Abbott Laboratories ABT 46.97 72.61B 10.23 9.53 1.91 1.84
Baxter International Inc. BAX 52.30 30.48B 12.45 11.34 2.27 2.16
Bio-Rad Laboratories Inc. BIO 110.36 3.07B 20.25 18.58 1.61 1.50
Beckman Coulter Inc. BEC 83.00 5.75B 21.17 20.44 1.57 1.51
Medical Instruments & Supplies Median 17.90 n/a 1.94 n/a
Radient Pharmaceuticals Corp. RPC 0.73 26.83M n/a n/a n/a n/a

Source: Thomson Financial

Source: Yahoo Finance

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