Transdel second-quarter 2010 net loss decreases to $0.5 million

Transdel Pharmaceuticals, Inc. (OTC Bulletin Board: TDLP), a specialty pharmaceutical company focused on developing topically administered products using its proprietary transdermal delivery platform, today announced financial results for the three and six months ended June 30, 2010 and other activity during the second quarter.  

Recent Achievement

• In June 2010, Transdel and Jan Marini Skin Research, Inc. ("JMSR") entered into a licensing agreement providing JMSR with the exclusive U.S. rights to Transdel's transdermal delivery technology for use in an anti-cellulite cosmeceutical product for the dermatological market.  Under the terms of the agreement, JMSR will pay Transdel a licensing royalty on the U.S. and worldwide sales of an anti-cellulite product using Trandel's delivery technology.  JMSR obtained an exclusive right to promote and sell a product in the U.S. dermatological market for approximately one year, after which time they have a non-exclusive right.  Also, JMSR obtained a non-exclusive right to promote and sell the product in the ex-U.S. dermatological market.  

Second Quarter and Year-to-Date 2010 Financial Results

As of June 30, 2010, the Company had cash and cash equivalents of approximately $1.0 million, compared to $1.0 million at March 31, 2010.  In April 2010, the Company received proceeds from a $1.0 million senior convertible note financing.

Second Quarter Financial Results

Transdel reported a net loss of approximately $0.5 million, or $0.03 per share, for the quarter ended June 30, 2010, compared to a net loss of approximately $1.2 million, or $0.08 per share, for the same period last year.

Research and development expenses totaled approximately $0.1 million and $0.9 million for the second quarter 2010 and 2009, respectively. The decrease in research and development costs compared to 2009 was primarily due to expenses incurred for the Phase 3 clinical study of Ketotransdel® that was in progress during the second quarter 2009.

General and administrative expenses were consistent between the second quarter of 2010 and 2009 totaling approximately $0.4 million and $0.3 million, respectively.

Year-to-Date Financial Results

Transdel reported a net loss of approximately $1.4 million, or $0.09 per share, for the six months ended June 30, 2010, compared to a net loss of approximately $2.8 million, or $0.18 per share, for the same period last year.

Research and development expenses totaled approximately $0.2 million and $2.0 million for the six months ended June 30, 2010 and 2009, respectively. The decrease in research and development costs compared to 2009 was primarily due to expenses incurred for the Phase 3 clinical study of Ketotransdel® that was in progress during the first six months of 2009.

General and administrative expenses totaled approximately $1.2 million and $0.8 million for the six months ended June 30, 2010 and 2009, respectively.  The increase is primarily due to a one-time charge of approximately $0.4 million for expenses relating to the separation agreement between the Company and our former chief executive officer who resigned in February 2010.