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VioQuest Reports 320% Increase in Revenue for Fiscal Second Quarter 2005; Raises Full Year Guidance

Posted on: Tuesday, 26 July 2005, 09:01 CDT

-- Revenue Projections to Exceed Prior Guidance; Now on Target to More Than Triple Prior Year's Results

-- Expanded Customer Base Demonstrates Continued Strong Demand for Wider Variety of Commercialized Products

VioQuest Pharmaceuticals, Inc., (OTCBB: VQPH) reported revenue of approximately $1.5 million for the second quarter of 2005 compared to $357,000 in the second quarter of 2004, an increase of approximately $1.1 million, or 320% year-over-year. Revenue growth continues to be driven by an increase in the volume of customized contract process development products provided to leading pharmaceutical companies in addition to a strong demand for a wider variety of proprietary ligands and catalysts manufactured by Chiral Quest, a subsidiary of VioQuest.

For the six months ended June 30, 2005, VioQuest reported revenue of approximately $2.1 million compared to revenue of $735,000 for the six months ended June 30, 2004, or an increase of 185%. Revenues for the first half of 2005 exceed reported full-year 2004 revenues of $1.5 million as a result of the expansion of VioQuest's production capabilities and operations in New Jersey and the successful partnering relationships established with leading pharmaceutical companies. Additionally, in May 2005, VioQuest's production facility in Shanghai, China, the hub of biotech activity in the region, became operational, providing significant additional resources to meet the growing demand for VioQuest's chiral catalysts.

As of the end of the second quarter, VioQuest had in excess of 60 customers, up from 50 in the same quarter last year. Over 80% of sales to these customers were repeat sales. VioQuest's chiral subsidiary now provides chiral catalysts and contract process research synthesis expertise to twelve of the top eighteen pharmaceutical companies worldwide.

VioQuest recently substantially refined its therapeutics development strategy through the execution of a definitive agreement to acquire Greenwich Therapeutics, Inc., a privately-held, New York-based biotechnology company. Upon the completion of the proposed acquisition of Greenwich, VioQuest will own the exclusive license rights to two anti-cancer agents: sodium stibogluconate (SSG), now in a Phase I/II clinical trial at the Cleveland Clinic Taussig Cancer Center, and triciribine (TCN-P), entering Phase I/II clinical trials at the Moffitt Cancer Center. Both compounds are being developed to provide a targeted approach to the treatment of ovarian, breast, pancreatic, melanoma, myeloma and renal cancers and provide accelerated entry to the targeted therapeutic market.

"We are excited to launch our therapeutics development strategy with the acquisition of two promising, novel anti-cancer compounds," stated Daniel Greenleaf, President and CEO of VioQuest. "Following the proposed acquisition of Greenwich, the opportunity to develop these two distinctive compounds in conjunction with renowned clinics such as the Cleveland Clinic Taussig Cancer Center and the Moffitt Cancer Center will further solidify our commitment to developing a therapeutics division capable of providing unique and custom solutions for unmet medical needs. Simultaneously, our chiral business continues to demonstrate unprecedented growth as a result of our expanded customer base demanding greater quantities of our proprietary ligands, catalysts, and contract research synthesis services. We now believe the business is solidly on track to triple prior year's revenues, a significant increase over our prior guidance of a doubling of prior year's revenue, and achieve breakeven in 2006. Additionally, our goal to continue expansion in China remains intact and we will continue to pursue promising drug development in that region."

About VioQuest Pharmaceuticals, Inc.

VioQuest Pharmaceuticals, Inc. strategy is to acquire and develop late preclinical and early clinical-stage therapies for oncological, viral and autoimmune diseases. The Company recently entered into a definitive merger agreement to acquire Greenwich Therapeutics, which owns exclusive license rights to two anti-cancer agents - sodium stibogluconate (SSG) and triciribine (TCN-P). VioQuest's life science subsidiary, Chiral Quest, Inc., a pioneer in asymmetric synthesis, offers proprietary chiral catalysts and synthesis expertise for creating important chiral intermediates and products, which improve the safety and efficacy of pharmaceutical products. Through Chiral Quest, VioQuest provides products and services to twelve of the top eighteen pharmaceutical companies at all stages of product life cycles and fine chemical manufacturers worldwide. For more information please visit www.vioquestpharm.com.

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest's actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of VioQuest's research programs and compounds will be successfully commercialized, or that the proposed acquisition of Greenwich Therapeutics will be completed. Risks, uncertainties and assumptions also include the possibility that the market for the sale of certain products may not develop as expected; and that development of these products may not proceed as planned. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2004. VioQuest assumes no obligation and does not intend to update these forward-looking statements.

Source: Business Wire

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