Replies to post #1055 on Radient Pharmaceuticals Corporation fka RXPC

[hellenicbull]

Thanks this confirms what I thought. It really stinks that the stock was halted for those few minutes just for a press release. It should have been business as usual and unfortunately share holders paid the price.

[primarywatcher]

Excellent article w/great links to insightful resources. IMO this is no "pump". BioMed Reports is noted for their pumps, but Garza (the author) has held a clear argument to support this company, and supports his comments with reference to outside sources. He doesn't write and run, he stays with RPC and provides solid support when noting the near future potential for this company.

Thanks for posting that link, Jukimol. And Garza, if you're reading thanks for re-posting bucket's link (http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58560594)

and for directing readers to NASDAQ requirements. Here is a more direct link to AMEX requirements:
http://www.venturelawcorp.com/listing_requirements_amex.html

In short, great article Garza! Much appreciate!!
http://biomedreports.com/2011010962196/did-panicked-traders-cause-radient-pharmaceutical-shares-to-drop-too-far.html

Here are some excerpts (bold and color are my additions):

Perhaps most importantly, without bias or a sudden case of mypoic vision, officials at the Amex who carefully reviewed the debt-for-equity details agreed that once they stamped their approval for the deal and re-capitalization set in, company shares would be able to absorb any dilution and still be priced to meet the exchange's minimum listing requirements. Surely the exchange officials were assured by the company that any additional shares that might be issued as part of the swap would be issued in such a manner that would not be disruptive to those listing requirements. That so many tens of millions of naked shorts had to purchase shares has also played into the equation here.

While Radient officials had been telling the market that they had expected to eliminate $33 million in debt and turn liabilities into $22 million in equity. Amex officials let the company eliminate even more debt- thus giving shareholders even better than anticipated news.

...

Their (Radient officials) interpretation holds up in other ways here as well. At $.30 per share, Radient was a sick patient who needed only a dose of oxygen to breathe and survive. At $.80 Radient is a vastly improved athlete running a marathon. What happens next, will dictate just how far and quickly the new pair of shoes takes him though the race and whether the stock will start trading at more appropriate levels as well.

...

First on the horizon are preliminary data results from a critical validation study that the company has been conducting for the FDA approved version of their cancer test kit. In August, the company released detailed news about the study; indicating that 1,000 colorectal patient samples with various disease stages were to be tested in parallel by RPC and Mayo Clinic clinicians to directly compare the results of the Onko-Sure(R) test with the current industry standard- the $300 million market leading Carcinoembryonic Antigen (CEA) test. That test was first approved in 1982 but not achieve commercial success until 1989. Now off-patent and manufactured by multiple companies, the test is out-dated and doesn't detect cancer until Stage III. The Radient Pharmaceuticals test costs the same, but detects as many as fourteen different cancers at Stage I- sooner than any other test anywhere.

Why is this important?
The industry- as proven by the CEA test's journey to market itself- is slow to adopt new technologies. These results are being watched by multiple labs and partners who believe that Radient's Onko-Sure test is in position to capture much of the CEA test market. Given the FDA approval, they already know the test works, now they want to see that it works flawlessly no matter which lab or technician happens to be handling the test. In addition, the CEA test has been reported to misdiagnose a disproportionate number of early stage cancers. The head-to-head study was scheduled to be completed in the fourth quarter, but has taken longer given the amount of data generated.

Remember that Radient's pathway for garnering physician acceptance involves being able to present an understanding of the value proposition associated with the test. Physicians do not change their behavior quickly and despite clinical evidence supporting the benefits of employing the Onko-Sure test kit, many members of the medical community are unaware of Radient’s technology. When complete results are announced the data will be provided to Mayo physicians and investigators for publication in medical journals. In addition, last week Johnson & Johnson announced that they would be developing their own early detection cancer test. Vast industry and media attention was focused on the fact that the company will be spending upwards of $30 million to develop the test. Look for Radient to help call attention to their own already developed, and ready to market product, but they'll need good solid data and this validation to help present their case to skeptics, the media and clinicians alike.

Why else is this important?
A world leader in diagnostic laboratory testing is waiting for final data from the Mayo study. Unbeknownst to most is the fact that one publicly traded diagnostics labs has reached out to the company. They not only have great interest in marketing the test as an early dection lung cancer test, they want to start using it immediately without FDA approval under a Clinical Laboratory Improvement Amendments (CLIA) waiver. Radient is already cleared by Health Canada to detect and monitor lung cancer from its earliest stages. Talks and negotiations have reportedly been underway for some time and a final agreement should be announced after the final Mayo study data is presented.

...

Radient's technology looks ready to change all of that right now.

We'd look for the same markets who traded a whopping 41 million shares of the company on Friday to absorb any official news and data released by the company in the coming days and react accordingly. Many European traders and investors purchased shares at much higher prices in recent days and they are likely double down early in the trading day as markets in Europe come to a close. That buying pressure alone is likely push stock prices higher as soon as trading kicks-off Monday morning.

We shall see if Garza guessed correctly for Monday morning...

My guess is, he's SPOT ON!