Quest PharmaTech reports second quarter fiscal 2009 results

Quest PharmaTech Inc. (TSX-V: QPT) ("Quest" or the "Company"), a pharmaceutical company developing and commercializing products for the treatment of cancer and dermatological conditions, today announced fiscal second quarter results for the period ended July 31, 2009.

"We made progress during the quarter towards dosing the first patient in our Phase 1 clinical trial to evaluate SLO52 as a treatment for prostate cancer," stated Dr. Madi R. Madiyalakan, Chief Executive Officer at Quest. "During the reporting period, we also made advancements to redefine Quest as an emerging oncology company through our efforts to sell and/or license our dermatology assets, and replace them with novel product candidates for the treatment of cancer."

Outlook Quest anticipates executing on a number of milestones in the coming weeks and quarters including: - Dosing the first patient in its Phase 1 clinical trial to evaluate SLO52 as a treatment for prostate cancer; SL052 photodynamic therapy has the potential to become an effective treatment for prostate cancer with minimal collateral damage compared to conventional treatment approaches - Successfully in-licensing an oncology product candidate (or multiple oncology product candidates) that will be complimentary to Quest's existing pipeline - Concluding the sale and/or licensing of its suite of dermatological product candidates, including SLO17 for Actinic Keratosis and SLO17 for Hair Removal, in order to accelerate Quest's focus on oncology - Strengthening its existing financial resources

Financial Results

Quest recognized licensing revenue of $252,000 and $754,000, respectively, during the three and six month periods ended July 31, 2009. Net consolidated (loss) income for the three and six month periods ended July 31, 2009 was ($2,808) or ($0.00) per share and $124,170 or $0.00 per share, respectively. Research and development expenditures for the three and six month periods ended July 31, 2009 totaled $94,067 and $213,383, respectively, while general and administrative expenses were $129,311 and $328,246, respectively, for the same period.

As of July 31, 2009, the Company had cash and cash equivalents of $429,449. The Company also has debt of $500,000 in the form of a convertible debenture (exercisable at $0.25 and due on March 22, 2010).