Conference call scheduled for August 12, 2008 at 1:30 p.m. (Pacific Time);
simultaneous webcast at http://www.adventrx.com
SAN DIEGO, Aug. 11 /PRNewswire-FirstCall/ -- ADVENTRX Pharmaceuticals,
Inc. (Amex: ANX), a biopharmaceutical company focused on in-licensing,
developing and commercializing proprietary product candidates primarily for
the treatment of cancer and infectious disease, today reported financial
results for the three-month and six-month periods ended June 30, 2008.
"During the second quarter of this year, we continued to make advances
with respect to the on-going development and our commercialization plans
for both ANX-530 (vinorelbine emulsion) as well as ANX-514 (docetaxel
emulsion)," stated Evan M. Levine, Chief Executive Officer and President of
ADVENTRX. "We continued to make progress with regard to the preparation of
our NDA submission for ANX-530 as well as conducting our registrational
bioequivalence clinical study of ANX-514. Furthermore, we made a
considerable investment of capital this quarter in order to initiate large
scale manufacturing to prepare for the commercial launch of both ANX-530
and ANX-514. This is a significant endeavor that will help enable us to
successfully launch these product candidates if they are approved. As well,
we announced response rate data from 2 separate studies of CoFactor(R), our
third oncology product candidate. We continue to evaluate CoFactor and
expect to provide further updates with respect to the program as we gather
additional data."
Three-Month Period Ended June 30, 2008 Operating Results
ADVENTRX's net loss was $6.4 million, or $0.07 per share, for the
three-month period ended June 30, 2008, compared to a net loss of $5.7
million, or $0.06 per share, for the same period in 2007. Included in the
net loss for the three-month period ended June 30, 2008 were non-cash,
share-based compensation expenses amounting to $0.4 million, compared to
$0.6 million for the same period in 2007.
In May 2008, the Company settled its dispute with Theragenex. In
consideration of and conditioned upon Theragenex paying the Company $0.6
million, the parties agreed to jointly move to dismiss the underlying
arbitration action, and in connection with dismissing the arbitration,
agreed to release each other from any and all claims related to their past
relationship, including Theragenex's rights under their prior agreement.
For the three-month period ended June 30, 2008, the Company recognized $0.5
million in licensing revenue, which represents a portion of the $0.6
million Theragenex settlement payment. The additional $0.1 million was
recognized as other income.
Research and development, or R&D, expenses increased by $0.3 million,
or 6%, to $4.5 million for the three-month period ended June 30, 2008, from
$4.2 million for the same period a year ago. The increase was primarily due
to a $1.3 million increase in expenses related to external research-related
manufacturing and regulatory and quality assurance activities related to
ANX-530 and ANX-514, offset by a $0.8 million decrease in external clinical
trial expenses related to ANX-530 and ANX-510, or CoFactor, a decrease of
$0.1 million personnel and related costs and a $0.1 million decrease in
share-based compensation expense. R&D expenses for the three-month period
ended June 30, 2008 included non-cash, share-based compensation expense
amounting to $0.1 million, compared to $0.2 million for the same period a
year ago.
Selling, general and administrative, or SG&A, expenses increased by
$0.6 million, or 31%, to $2.6 million for the three-month period ended June
30, 2008, from $2.0 million for the same period a year ago. The increase
was primarily due to a $0.2 million severance expense related to the
departure of our former chief financial officer in April 2008, as well as
an increase of $0.4 million in consulting expenses for tax services, market
research for ANX-530 and legal expenses related to the Theragenex
settlement. SG&A expenses for the three-month period ended June 30, 2008
included non-cash, share-based compensation expenses amounting to $0.2
million, compared to $0.3 million for the same period a year ago.
Interest and other income amounted to $0.3 million for the three-month
period ended June 30, 2008, compared to $0.6 million for the same period a
year ago.
Six-Month Period Ended June 30, 2008 Operating Results
ADVENTRX's net loss was $12.4 million, or $0.14 per share, for the
six-month period ended June 30, 2008, compared to a net loss of $10.8
million, or $0.12 per share, for the same period in 2007. Included in the
net loss for the six-month period ended June 30, 2008 were non-cash,
share-based compensation expenses amounting to $1.0 million, compared to
$1.2 million for the same period in 2007.
For the six-month period ended June 30, 2008, we recognized $0.5
million in licensing revenue, which represents a portion of the $0.6
million Theragenex settlement payment. The additional $0.1 million was
recognized as other income. For the six-month period ended June 30, 2007,
we recognized $0.5 million in licensing revenue under our license agreement
with Theragenex. Since January 2007, we have received $1.1 million from
Theragenex.
R&D expenses increased by $0.7 million, or 9%, to $8.3 million for the
six-month period ended June 30, 2008, from $7.6 million for the same period
a year ago. The increase was primarily due to a $1.8 million increase in
expenses related to external research-related manufacturing and regulatory
and quality assurance activities related to ANX-530 and ANX-514 and an
increase of $0.2 million in personnel and related costs, offset by a $1.3
million decrease in external clinical trial expenses related to ANX-530 and
CoFactor and a $58,000 decrease in share-based compensation expense. R&D
expenses for the six-month period ended June 30, 2008 included non-cash,
share-based compensation expense amounting to $0.4 million, compared to
$0.5 million for the same period a year ago.
SG&A expenses increased by $0.2 million, or 4%, to $5.0 million for the
six-month period ended June 30, 2008, from $4.8 million for the same period
a year ago. The increase was primarily due to a $0.2 million severance
expense related to the departure of our former chief financial officer in
April 2008. SG&A expenses for the six-month period ended June 30, 2008
included non-cash, share-based compensation expenses amounting to $0.5
million, compared to $0.7 million for the same period a year ago.
Interest and other income amounted to $0.6 million for the six-month
period ended June 30, 2008, compared to $1.2 million for the same period a
year ago.
Balance Sheet Highlights
As of June 30, 2008, the Company had cash, cash equivalents and
short-term investments in securities totaling $22.1 million. Stockholders'
equity amounted to $19.7 million as of June 30, 2008.
Conference Call and Webcast
ADVENTRX management will host a conference call with simultaneous
webcast to discuss second quarter results, provide a corporate update and
take investors' questions tomorrow at 1:30 p.m. Pacific/ 4:30 p.m. Eastern
Time. Evan M. Levine, Chief Executive Officer and President, and Mark N.K.
Bagnall, Chief Financial Officer and Executive Vice President, are
scheduled to lead the call and will be joined by other members of the
Company's senior management. The conference call may be accessed by dialing
(888) 215-7027 for domestic callers and (913) 312-0654 for international
callers. The webcast will be available live via the Internet by accessing
ADVENTRX's website at http://www.adventrx.com under "Investors". Replays of
the webcast will be available on ADVENTRX's website for 30 days and a phone
replay will be available through September 12, 2008 by dialing (888)
203-1112 and entering the pass code 8240633.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a biopharmaceutical company focused on
in-licensing, developing and commercializing proprietary product candidates
primarily for the treatment of cancer and infectious disease. The Company
seeks to improve the performance and commercial potential of existing
treatments by addressing problems associated with these treatment regimens.
More information can be found on the Company's website 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 support its operations, including the projects necessary to meet
its anticipated or stated goals and milestones; the risk that preclinical
results are not indicative of the success of subsequent clinical trials and
the results of pending clinical trials; the potential for ADVENTRX's
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, obtaining regulatory approval for and marketing
ADVENTRX's product candidates; the potential for regulatory authorities to
require additional preclinical work or other clinical requirements to
support regulatory filings; the market potential for ADVENTRX's product
candidates and ADVENTRX's ability to compete in those markets; the scope
and validity of patent protection for ADVENTRX's product candidates; patent
and non-patent exclusivity covering Navelbine(R) and Taxotere(R); 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 as set forth in this press
release to reflect events or circumstances arising after the date on which it
was made.
[Tables to Follow]
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:
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $500 $- $500 $500
Operating expenses:
Research and
development 4,511 4,240 8,332 7,624
Selling, general
and administrative 2,636 2,006 5,001 4,816
Depreciation and
amortization 44 53 91 105
Total operating
expenses 7,191 6,299 13,424 12,545
Loss from operations (6,691) (6,299) (12,924) (12,045)
Interest income 266 576 565 1,198
Loss before income
taxes (6,425) (5,723) (12,359) (10,847)
Provision for
income taxes - - - -
Net loss $(6,425) $(5,723) $(12,359) $(10,847)
Net loss per share
-- basic and diluted $(0.07) $ (0.06) $ (0.14) $ (0.12)
Weighted average
shares -- basic and
diluted 90,253 89,707 90,253 89,692
Balance Sheet Data:
June 30, December 31,
2008 2007
(unaudited) (audited)
Total cash, cash equivalents and
investments in securities $22,070 $ 33,463
Net working capital 19,314 30,658
Total assets 23,158 34,542
Total liabilities 3,492 3,507
Stockholders' equity 19,666 31,035
SOURCE ADVENTRX Pharmaceuticals, Inc.
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Related links:
http://www.adventrx.com
CONTACT:
Ioana C. Hone of ADVENTRX Pharmaceuticals,
+1-858-552-0866
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