Radient Outlook on India Partner Dims

TUSTIN, Calif. (TheStreet) -- Radient Pharmaceuticals(RPC) is backing away from claims made to investors about an ambitious cancer-screening program in India that was supposed to resurrect the financial performance of the struggling diagnostics company.

In regulatory filings made public last week, Radient disclosed its India joint venture partner lacks money and does not have the support of the Indian government to start a program in which as many as 2 million rural and poor residents of northern India were to be screened for cancer using Radient's blood-based cancer test Onko-Sure.

Last January, Radient told investors that this India cancer-screening venture would generate $10 million in sales in 2011, based on the planned purchase of 25,000 Onko-Sure tests kits by Radient's New Delhi-based partner, Gaur Diagno.

But in its long-delayed 10-K annual report filed last week, Radient acknowledged that the India venture is delivering far less than promised.

"Due to the inability of Jaiva Gaur Diagno to obtain adequate financing, obtain governmental as well as private support for the launch of Onko-Sure in India, Jaiva Gaur Diagno substantially reduced their purchase forecast for fiscal year 2011," Radient stated in its filing with the Securities and Exchange Commission. [Radient began referring to Gaur Diagno as Jaiva Gaur Diagno for the first time in its 10-K.]

The Radient filing adds: "At this time, Jaiva Gaur Diagno is unable to forecast the timing or the number, if any, of Onko-Sure test kits that will be eventually purchased for the India market."

A spokesperson for Radient declined to answer questions about the new Onko- Sure disclosures until the company submits a 10-Q regulatory filing with the Securities and Exchange Commission.

Radient desperately needs the India revenue source to save the struggling company from insolvency. In more than three years dating back to 2008, Radient has sold less than $500,000 worth of Onko-Sure test kits in the U.S. and Canada, where it is approved to monitor the progress of colon cancer and lung cancer, respectively. The inability to generate any significant revenue from Onko-Sure has saddled Radient with mounting losses and crushing amounts of debt, much of it now in default.

Radient lacks the cash to pay its debt and has yet to reach an agreement with creditors to restructure its loans, according to regulatory filings. The company also faces delisting from the NYSE Amex, where its shares closed Thursday at 22 cents each.