SAN DIEGO, March 15 /PRNewswire-FirstCall/ -- ADVENTRX Pharmaceuticals,
Inc. (Amex: ANX) today reported financial results for the fourth quarter
and year ended December 31, 2006.
Fourth Quarter 2006 Results
For the fourth quarter ended December 31, 2006, ADVENTRX's net loss was
$6.4 million, or $0.08 per share, compared to a net loss of $2.2 million,
or $0.03 per share, for the same period in 2005. The net loss in the fourth
quarter of 2006 was attributable primarily to operating expenses of $4.8
million, including $3.1 million related to research and development
programs and $1.7 million related to selling, general and administrative
expenses, compared to $3.8 million in operating expenses for the same
period a year ago. In addition, the net loss in the fourth quarter of 2006
of $6.4 million included non-cash expenses of $2.1 million attributable to
a loss on fair value of warrants and $505,000 related to stock-based
compensation recorded under the revised Financial Accounting Standards No.
123 ("FAS 123R"). The net loss in the fourth quarter of 2005 of $2.2
million included a non-cash gain on fair value of warrants of $1.4 million
and non-cash expenses of $278,000 related to stock-based compensation
recorded under FAS 123R. Interest income amounted to $454,000 and $235,000
for the fourth quarter ended 2006 and 2005, respectively.
Research and development (R&D) expenses of $3.1 million were relatively
unchanged from the same period a year ago. A $428,000 increase in expenses
for Phase IIb and Phase III clinical development of ANX-510 (CoFactor(R))
for metastatic colorectal cancer was partially offset by a $223,000
reduction in preclinical program costs and R&D consulting. Employee-related
compensation also was slightly lower than in the same period a year ago.
Selling, general and administrative expenses of $1.7 million in the fourth
quarter of 2006 were $1.0 million higher than the same period a year ago,
reflecting additional employees and employee-related expense of $784,000
and increases in consulting and professional fees of $221,000.
The three months ended December 31, 2006 were highlighted by the
following events:
* Licensed the U.S. rights to ANX-211 (chitosan gel), a proprietary
antiviral product, to Theragenex, LLC, a life science and technology
company. ADVENTRX anticipates that Theragenex will launch a product
during the 2007/2008 cold and influenza season.
* Added approximately $37.1 million in capital from the sale of common
stock to institutional investors in a registered direct offering at a
price of $2.75 per share.
* Initiated a marketing-enabling clinical study of ANX-530 (vinorelbine
emulsion), which is designed to establish the bioequivalence of
ANX-530 and vinorelbine tartrate. Vinorelbine tartrate is an
anticancer agent approved for use in non-small cell lung cancer.
* Initiated a Phase II clinical trial of CoFactor(R) in the treatment
of advanced metastatic breast cancer.
Balance Sheet Highlights
As of December 31, 2006, cash and investments in securities amounted to
$51.7 million, including cash and cash equivalents of $26.0 million and
short-term investments in securities of $25.7 million.
Year 2006 Results
For the year ended December 31, 2006, ADVENTRX reported a net loss of
$29.3 million, or $0.40 per share, compared to $24.8 million, or $0.41 per
share, for the same period in 2005. The net loss in 2006 of $29.3 million
included non-cash expenses of $10.4 million for purchased in-process
research and development, $2.1 million related to stock-based compensation
recorded under FAS 123R and $660,000 attributable to a loss on fair value
of warrants. The net loss in 2005 of $24.8 million included a non-cash loss
on fair value of warrants of $11.6 million and non-cash expenses of $1.2
million related to stock-based compensation recorded under FAS 123R.
Interest income increased to $1.2 million in 2006, compared to $496,000 in
2005, due to higher average invested balances and a higher average interest
rate in 2006.
Operating expenses amounted to $29.8 million in 2006, including a $10.4
million charge to in-process research and development in connection with
the acquisition of SD Pharmaceuticals, Inc. in April 2006, $12.0 million in
research and development, and $7.2 million in selling, general and
administrative expense. Operating expenses in 2005 amounted to $13.7
million.
Research and development expenses increased by $3.3 million, to $12.0
million in 2006, due to increased clinical spending for launching a Phase
III clinical trial and continuing a Phase IIb clinical trial of CoFactor(R)
for treatment of metastatic colorectal cancer.
Selling, general and administrative expenses increased by $2.3 million,
to $7.2 million in 2006, due to a $1.3 million increase reflecting
additional employees and employee-related expenses, a $579,000 increase in
professional and consulting fees, and a $226,000 increase in insurance
costs.
During 2006 the Company made significant additions and changes to the
management team, including the appointment of a president and chief medical
officer, a chief financial officer, a vice president of medical affairs and
a general counsel.
Conference Call and Webcast
ADVENTRX management will host an investment-community conference call
to discuss these results and provide a corporate update today at 1:30 p.m.
Pacific/4:30 p.m. Eastern time. Evan M. Levine, Chief Executive Officer,
and Gregory P. Hanson, Senior Vice President and Chief Financial Officer,
are scheduled to lead the call and will be joined by other members of the
Company's senior management to discuss the quarter's and year's results and
to take investors' questions. Those interested in listening to the
conference call live via the Internet may do so by visiting the "Investors"
section of ADVENTRX's website at http://www.adventrx.com. Please plan to connect
several minutes prior to the start of the broadcast to ensure adequate time
for any software download that may be necessary.
Replays of the webcast will be available for 30 days via the
"Investors" section of ADVENTRX's website at http://www.adventrx.com. A phone
replay will be available through April 16, 2007 by dialing 888-203-1112
(domestic) or 719-457-0820 (international) and entering the passcode
5166464.
Annual Meeting
The Company's 2007 Annual Meeting of Stockholders will be held on May
23, 2007, at 10:00 a.m. at the Hyatt Regency La Jolla in San Diego,
California. All stockholders are invited to attend.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a biopharmaceutical research and
development company focused on commercializing product candidates for the
treatment of cancer and infectious diseases. ADVENTRX seeks to improve the
performance and safety of existing treatments by addressing significant
problems, such as drug metabolism and bioavailability, excessive toxicity
and treatment resistance. ADVENTRX's lead product candidate, ANX-510
(CoFactor(R)), is in Phase III and Phase IIb clinical trials for the
treatment of metastatic colorectal cancer, as well as in a Phase II
clinical trial for the treatment of advanced breast cancer. The Company is
in the development stage and has not yet marketed any products or generated
any significant revenue. More information can be found on ADVENTRX's web
site at http://www.adventrx.com.
Forward Looking Statement
ADVENTRX cautions you that statements included in this press release
that are not a description of historical facts are forward-looking
statements that involve risks, uncertainties, assumptions and other factors
that, if they do not materialize or prove to be accurate, could cause
ADVENTRX's results to differ materially from historical results or those
expressed or implied by such forward-looking statements. Such
forward-looking statements are made based on management's current
expectations and beliefs and should not be regarded as a statement or
representation by ADVENTRX that any of its plans, including its anticipated
milestones, will be achieved on time or at all. The potential risks and
uncertainties that could cause actual results to differ materially include,
but are not limited to: the risk that ADVENTRX will be unable to raise
sufficient capital to fund the projects necessary to meet its anticipated
or stated goals and milestones; the potential to attract a strategic
partner and the terms of any related transaction; the ability to timely
enroll subjects in ADVENTRX's current and anticipated clinical trials; the
potential for ANX-510 (CoFactor(R)) and ADVENTRX's other product candidates
to receive regulatory approval for one or more indications on a timely
basis or at all, and the uncertain process of seeking regulatory approval;
other difficulties or delays in developing, testing, manufacturing and
marketing of and obtaining regulatory approval for CoFactor(R) or
ADVENTRX's other product candidates; the potential for regulatory
authorities to require additional preclinical work or other clinical
requirements to support regulatory filings; the scope and validity of
patent protection for CoFactor(R) and ADVENTRX's other product candidates;
and other risks and uncertainties more fully described in ADVENTRX's press
releases and periodic filings with the Securities and Exchange Commission.
ADVENTRX's public filings with the Securities and Exchange Commission are
available at http://www.sec.gov.
You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date when made. All forward-looking
statements are qualified in their entirety by this cautionary statement and
ADVENTRX assumes no obligation to revise or update any forward-looking
statement, including as set forth in this press release, to reflect events
or circumstances arising after the date on which it was made.
ADVENTRX Pharmaceuticals, Inc.
(A Development Stage Enterprise)
Summary Consolidated Financial Information
(In 000s except for per share data)
Consolidated Statement
of Operations Data:
Three months ended Twelve months ended
December 31, December 31,
2006 2005 2006 2005
(unaudited) (unaudited)
Revenues $-- $-- $-- $--
Operating expenses:
Research and development 3,060 3,021 12,001 8,682
In-process research and
development -- -- 10,422 --
Selling, general and
administrative 1,691 740 7,236 4,901
Depreciation and
amortization 49 19 177 116
Total operating
expenses 4,800 3,780 29,836 13,699
Loss from operations (4,800) (3,780) (29,836) (13,699)
Interest income 454 235 1,164 496
Loss on fair value
of warrants (2,094) 1,393 (660) (11,580)
Loss before income
taxes (6,440) (2,152) (29,332) (24,783)
Provision for income
taxes -- -- -- --
Net loss $(6,440) $(2,152) $(29,332) $(24,783)
Net loss per share -
basic and diluted $(0.08) $(0.03) $(0.40) $(0.41)
Weighted average shares -
basic and diluted 83,092 67,194 73,988 59,828
Balance Sheet Data:
2006 2005
Total cash and investments in securities $51,745 $22,593
Net working capital (deficit) 19,532 (8,534)
Total assets 52,798 23,622
Warrant liability 30,356 29,696
Total liabilities 32,841 31,450
Stockholders' equity (deficit) 19,958 (7,829)
SOURCE ADVENTRX Pharmaceuticals, Inc.
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Related links:
http://www.adventrx.com
http://www.prnewswire.com/gh/cnoc/comp/920134.html/
CONTACT:
Investors, Ioana C. Hone of ADVENTRX
Pharmaceuticals, Inc., +1-858-552-0866; or Media, Amy Martini
WeissComm Partners, +1-212-301-7223, for ADVENTRX
Pharmaceuticals, Inc.
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