Transdel Pharmaceuticals Reports Second Quarter and Year-to-Date 2010 Results

Transdel Pharmaceuticals Reports Second Quarter and Year-to-Date 2010 Results

LA JOLLA, CA August 12, 2010 Transdel Pharmaceuticals, Inc. (OTCBB: 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.

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.

About Transdel Pharmaceuticals, Inc.

Transdel Pharmaceuticals, Inc. (OTCBB: TDLP) is a specialty pharmaceutical company developing

non-invasive, topically delivered products. The Company s innovative-patented Transdel cream

formulation technology is designed to facilitate the effective penetration of a variety of products

through the tough skin barrier. Ketotransdel , the Company s lead pain product, has successfully

completed a Phase 3 clinical trial and utilizes the Transdel technology to deliver the active drug,

ketoprofen, a non-steroidal anti-inflammatory drug through the skin directly into the underlying

tissues where the drug exerts its well-known anti-inflammatory and analgesic effects. The Company

intends to leverage its Transdel platform technology to expand and create a portfolio of topical

products for a variety of indications. The Company is actively pursuing partnerships with

companies to expand its product portfolio for pharmaceutical and cosmetic/cosmeceutical products.

For more information, please visit http://www.transdelpharma.com.

Safe Harbor Statement

The Company cautions you that the statements included in this press release that are not a

description of historical facts are forward-looking statements. These include statements regarding:

the Company s interpretation of the results of its Phase 3 clinical trial for

Ketotransdel ; the Company s ability to obtain regulatory approval to market

Ketotransdel; and the Company s ability to continue as a going concern and complete additional

development activities for products utilizing its proprietary transdermal delivery platform. Actual

results may differ materially from those set forth in this press release due to the risks and

uncertainties inherent in the Company s business, including, without limitation: the outcome of the

final analyses of the data from the Phase 3 clinical trial may vary from the Company s initial

conclusions; the FDA may not agree with the Company s interpretation of such results or may

challenge the adequacy of the Company s clinical trial design or the execution of the clinical

trial; the FDA may continue to require the Company to complete additional clinical trials for

Ketotransdel before the Company can submit a 505(b)(2) NDA application; the results of

any future clinical trials may not be favorable and the Company may never receive regulatory

approval for Ketotransdel ; and the Company s current need to raise additional funding

to complete its product development plans. More detailed information about the Company and the risk

factors that may affect the realization of forward-looking statements is set forth in the Company s

filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and

its Quarterly Reports on Form 10-Q filed with the SEC. Such documents may be read free of charge on

the SEC s web site at www.sec.gov. You are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date hereof. All forward-looking statements

are qualified in their entirety by this cautionary statement and the Company undertakes no

obligation to revise or update this press release to reflect events or circumstances after the date

hereof. This caution is made under the safe harbor provisions of Section 21E of the Private

Securities Litigation Reform Act of 1995.

John Lomoro, Chief Financial Officer and Acting Chief Executive Officer

Transdel Pharmaceuticals, Inc.