Radient Reveals New Divestiture Plan for China Subsidiary

| About: Radient Pharmaceuticals (RXPC)

Radient Pharmaceuticals Corporation (AMEX: RPC) announced a new plan to sell its China subsidiary, Jade Pharmaceuticals Inc. Jade has signed a letter of intent to merge with Shanxi BaoTai Pharmaceutical Co., a privately owned company located in Taiyuan China. When the transaction is closed, Jade plans to merge the combined entity with an unnamed public company, and the public company will move its listing to the NYSE Amex.

Both Jade and BaoTai produce drugs for the cancer market. At one point, Radient placed a $20 million value on Jade, though no financial details of the transaction were disclosed. Radient said it would offer bridge financing to facilitate the merger of Jade-BaoTai with the public company.

In April 2010, Radient deconsolidated Jade’s contribution to its financial results when it announced that Jade’s management had effectively declared its independence from Radient. Jade was no longer responding to requests for information about the company’s operations or transferring money into Radient’s accounts. Since then, Radient has announced a number of plans to divest itself of Jade.

Radient said Jade is China’s second leading provider of Domperidone -- an anti-emetic used to counteract the nausea and vomiting side-effects of chemotherapy. It hopes the Radient-BaoTai combination can claim half the $125 million of Domperidone market within three years. Other pipeline products may also contribute to the entity’s financial fortunes.

Jade, which makes generic and TCM products, operates in China through a wholly-owned subsidiary, Jiangxi Jiezhong Bio-Chemical Pharmacy Company Limited.

After the divestiture, Radient will continue to operate two separate lines of business: an in vitro diagnostics unit, including the FDA-approved cancer test Onko-Sure, and a high-end line of anti-aging cosmetics, called Elleuxe.

Disclosure: none.