Conference call scheduled for 1:30 p.m. (Pacific); simultaneous webcast at
http://www.adventrx.com
SAN DIEGO, Aug. 2 /PRNewswire-FirstCall/ -- ADVENTRX Pharmaceuticals,
Inc. (Amex: ANX) a biopharmaceutical research and development company
focused on commercializing proprietary product candidates for the treatment
of cancer and infectious diseases, today announced financial results for
the three-month and six-month periods ended June 30, 2007.
Second Quarter 2007 Operating Results
ADVENTRX's net loss was $5.7 million, or $0.06 per share, for the
three-month period ended June 30, 2007, compared to a net loss of $15.2
million, or $0.21 per share, for the same period in 2006. Included in the
loss for the three-month period ended June 30, 2007 was non-cash,
share-based compensation expense amounting to $622,000, compared to
$356,000 for the same period a year ago. Included in the loss for the
three-month period ended June 30, 2006 was $10.4 million of in-process
research and development expense recorded in connection with the
acquisition of SD Pharmaceuticals and eight of its product candidates.
"The Company's progress in the first half of the year has now set the
stage for several important milestones," stated Evan M. Levine, chief
executive officer of ADVENTRX. "Key upcoming events in the second half of
the year include Phase 2b clinical trial results for CoFactor, pivotal
study results for ANX-530 and the planned initiation of a clinical study of
ANX-201."
Research and development, or R&D, expenses increased by $1.0 million,
or 31%, to $4.2 million for the three-month period ended June 30, 2007 from
$3.2 million for the same period a year ago. The increase in R&D expenses
was primarily due to a $485,000 increase in external clinical development
costs for ANX-510, or CoFactor(R), and ANX-530 (vinorelbine emulsion), and
a $463,000 increase in R&D personnel and related costs. R&D expenses for
the three-month period ended June 30, 2007 included non-cash, share-based
compensation expense amounting to $250,000, compared to $124,000 for the
same period a year ago.
Selling, general and administrative, or SG&A, expenses increased by
$252,000, or 14%, to $2.0 million for the three-month period ended June 30,
2007 from $1.8 million for the same period a year ago. The increase in SG&A
expenses was primarily due to a $349,000 increase in SG&A personnel and
related costs; partially offset by a $235,000 decrease in patent-related
legal fees. SG&A expenses for the three-month period ended June 30, 2007
included non-cash, share-based compensation expense amounting to $372,000,
compared to $232,000 for the same period a year ago.
Interest income amounted to $576,000 for the three-month period ended
June 30, 2007, compared to $252,000 for the same period a year ago.
Effective January 1, 2007, the Company adopted FASB Staff Position on
No. EITF 00-19-2, Accounting for Registration Payment Arrangements, or FSP
EITF 00-19-2. Pursuant to FSP EITF 00-19-2, the Company determined that no
contingent liability was required to be recognized as of June 30, 2007
relating to a class of warrants issued in July 2005 that contained a
registration payment arrangement, and accordingly, the carrying amount of
the warrant liability that had been reported in previous periods was
eliminated. In applying the new method retrospectively, the comparative
financial statements of prior periods have been adjusted to eliminate the
fair value of the warrant liability.
Balance Sheet Highlights
As of June 30, 2007, the Company had cash, cash equivalents and
investments in securities totaling $43.7 million, including cash and cash
equivalents of $16.7 million and short-term investments in securities of
$27.0 million. Stockholders' equity amounted to $40.8 million as of June
30, 2007.
First Half 2007 Operating Results
The net loss for the first six months of 2007 was $10.8 million, or
$0.12 per share, compared to $19.2 million, or $0.28 per share, for the
same period a year ago. Included in the loss for the first six months of
2006 was $10.4 million of in-process research and development expense
recorded in connection with the acquisition of SD Pharmaceuticals.
R&D expenses were $7.6 million for the first six months of 2007,
compared to $5.7 million for the same period a year ago. The increase in
R&D expenses for 2007 was primarily related to a $968,000 increase in R&D
personnel and related costs, a $486,000 increase in external clinical study
fees and expenses related to CoFactor and ANX-530, and a $452,000 increase
in external preclinical study fees and expenses mostly related to ANX-201
(thiophosphonoformate).
SG&A expenses were $4.8 million for the first six months of 2007,
compared to $3.5 million for the same period a year ago. The increase in
SG&A expenses for 2007 was primarily related to a $960,000 increase in SG&A
personnel and related costs and a $125,000 increase in professional and
consulting fees related to market research for our product candidates and
investor relations.
Revenue of $500,000 in the first six months of 2007 represented a
license fee earned from licensing ANX-211 (chitosan gel), compared to no
revenue for the comparable period in 2006.
Conference Call and Webcast
Management will host a conference call with a simultaneous webcast that
will take place on Thursday, August 2 at 1:30 P.M. Pacific/4:30 P.M.
Eastern to discuss the second quarter of 2007. 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 team. The webcast will be
available live via the Internet by accessing ADVENTRX's web site at
http://www.adventrx.com under "Investors" or by telephone at (877) 704-5386
(domestic) or (913) 312-1302 (international). Replays of the webcast will
be available for 30 days, and a phone replay will be available through
September 2, 2007 by dialing 888-203-1112 and entering the passcode
7724051.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a biopharmaceutical research and
development company focused on commercializing proprietary product
candidates for the treatment of cancer and infectious diseases. The Company
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. The Company's
lead product candidate CoFactor, is in Phase 3 and Phase 2b clinical trials
for the treatment of metastatic colorectal cancer, as well as in a Phase 2
clinical trial for the treatment of advanced breast cancer. More
information can be found on ADVENTRX's web site at http://www.adventrx.com.
Forward Looking Statements
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 and assumptions that, if they materialize or
do not 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. These risks and uncertainties 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 ability to timely enroll subjects in ADVENTRX's
current and anticipated clinical trials; the timing and success of clinical
trials; the potential for CoFactor and ADVENTRX's other product candidates
to receive regulatory approval for one or more indications on a timely
basis or at all; the uncertain process of seeking regulatory approval;
other difficulties or delays in developing, testing, manufacturing and
marketing of CoFactor and 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 and ADVENTRX's other product
candidates; adverse side effects or inadequate therapeutic efficacy of
CoFactor or ADVENTRX's other product candidates; the risk that preclinical
results are not indicative of the success of subsequent clinical trials and
that products will not perform as preclinical and clinical data suggest or
as otherwise anticipated; 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. ADVENTRX does not
intend to 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. and Subsidiaries
(A Development Stage Enterprise)
Summary Condensed Consolidated Financial Information
(In 000s except for per share data)
Consolidated Statement
of Operations Data: Quarters Ended June 30, Six Months Ended June 30
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ -- $ -- $500 $ --
Operating expenses:
Research
and development 4,240 3,234 7,624 5,718
Selling, general
and administrative 2,006 1,755 4,816 3,490
Depreciation and
amortization 53 41 105 78
In-process research
and development -- 10,422 -- 10,422
Total operating
expenses 6,299 15,452 12,545 19,708
Loss from operations (6,299) (15,452) (12,045) (19,708)
Interest income 576 252 1,198 489
Loss before income taxes (5,723) (15,200) (10,847) (19,219)
Provision for income
taxes -- -- -- --
Net loss $(5,723) $(15,200) $(10,847) $(19,219)
Net loss per share
- basic and diluted $(0.06) $(0.21) $(0.12) $(0.28)
Weighted average
shares - basic and
diluted 89,707 71,215 89,692 69,604
Balance Sheet Data:
June 30, December 31,
2007 2006
(Unaudited)
Total cash and investments in securities $43,719 $51,745
Net working capital 40,354 49,889
Total assets 44,945 52,798
Total liabilities 4,189 2,484
Stockholders' equity 40,757 50,314
SOURCE ADVENTRX Pharmaceuticals, Inc.
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http://www.adventrx.com
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CONTACT:
Investors, Ioana C. Hone of ADVENTRX
Pharmaceuticals, Inc., +1-858-552-0866
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