ANX Mast Therapeutics, Inc.

SAN DIEGO, March 16 /PRNewswire-FirstCall/ -- ADVENTRX Pharmaceuticals, Inc. (AMEX:ANX) today announced financial results for the three and 12 months ended December 31, 2005. For the fourth quarter of 2005, ADVENTRX reported loss from operations of $3.5 million and net loss of $2.2 million, or $0.03 per share, compared with a loss from operations of $2.4 million and net loss of $2.4 million, or $0.04 per share, for the fourth quarter of 2004. For the year ended December 31, 2005, loss from operations was $13.2 million and net loss was $24.8 million, or $0.41 per share, compared with a loss from operations of $6.7 million and net loss of $6.7 million, or $0.13 per share, for the same period in 2004. Fourth Quarter and Full Year Financial Review Research and development (R&D) expenses for the fourth quarter of 2005 were $3.0 million, compared with $691,000 for the same period in 2004. The increase in R&D expenses for the 2005 fourth quarter was due primarily to continuing expenses for the CoFactor Phase IIb clinical trial, preparations for the Phase III clinical trial, continued preclinical development of Thiovir and preclinical development of the newly acquired compound, ANX-530 (vinorelbine emulsion). General and administrative expenses for the fourth quarter were $740,000 compared with $1.7 million for the same period in 2004. The decrease for the 2005 fourth quarter was due primarily to legal settlements accrued in 2004 and paid in 2005. For the full year of 2005 R&D expenses were $8.7 million, compared with $2.7 million for full year of 2004. The increase in 2005 R&D expenses was due mainly to initiation of the Phase IIb clinical trial, preclinical development of the newly acquired compound, ANX-530 (vinorelbine emulsion) and expense for options granted in 2005. General and administrative expenses increased to $4.9 million in 2005, from $4.0 million in 2004, primarily due to expansion of facilities, addition of personnel, increased legal fees for corporate and intellectual property activity and expense for options granted in 2005. In conjunction with the financing that closed in July of 2005, the Company booked a non-cash expense related to the fair value of warrants which were issued as part of the financing. Accounting rules require these warrants to be revalued every quarter. In the fourth quarter of 2005, the Company booked a gain related to these warrants of $1.4 million. For the full year 2005, the Company booked a net non-cash expense of $11.6 million for these warrants. ADVENTRX reported cash and short term investments of approximately $22.6 million at December 31, 2005, compared with $13.0 million as of December 31, 2004. The cash increase reflects the completion of a private placement announced on July 22, 2005, resulting in gross proceeds of approximately $20 million. Update Regarding Phase III CoFactor Clinical Trial The Company previously reported that the US Food and Drug Administration (FDA) granted clearance under a special protocol assessment (SPA) in Q2 2005 to conduct a pivotal Phase III clinical trial using CoFactor in first line treatment of metastatic colorectal cancer. In February 2006, following extensive consultations with thought-leading oncologists, the Company requested certain adjustments with the FDA with respect to revisions that the Company would like to make to optimize the protocol for the Phase III clinical trial, including increasing the trial size to 1200 patients. The Company previously reported that this clinical trial was planned to begin patient dosing in Q1 2006. The Company now plans to wait until after it receives the response to these adjustments from the FDA. The Company anticipates beginning patient dosing for this clinical trial in Q2 2006. Annual Meeting of Stockholders ADVENTRX will hold its Annual Meeting of Stockholders on May 15, 2006 at 10:00 a.m. Pacific Daylight Time at the Company's headquarters, located at 6725 Mesa Ridge Road, Suite 100, San Diego, Calif. Proxy materials along with pertinent information will be mailed to stockholders of record prior to the date of the meeting. About ADVENTRX ADVENTRX Pharmaceuticals is a biopharmaceutical research and development company focused on introducing new technologies for anticancer and antiviral treatments that surpass the performance and safety of existing drugs, by addressing significant problems such as drug metabolism, toxicity, bioavailability and resistance. More information can be found on the Company's Web site at http://www.adventrx.com/. Forward Looking Statement This press release contains forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, regarding ADVENTRX. Such statements are made based on management's current expectations and beliefs. Actual results may vary from those currently anticipated based upon a number of factors, including uncertainties inherent in the drug development process, the timing and success of clinical trials, the validity of research results, and the receipt of necessary approvals from the FDA and other regulatory agencies. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements regarding ADVENTRX, see the section titled "Risk Factors" in ADVENTRX's last annual report on Form 10-K, as well as other reports that ADVENTRX files from time to time with the Securities and Exchange Commission. All forward-looking statements regarding ADVENTRX are qualified in their entirety by this cautionary statement. ADVENTRX undertakes no obligation to release publicly any revisions, which may be made to reflect events or circumstances after the date hereof. ADVENTRX PHARMACEUTICALS, INC. AND SUBSIDIARY Condensed Consolidated Balance Sheets December 31, 2005 2004 Assets Current assets: Cash and cash equivalents $14,634,618 $13,032,263 Accrued interest income 10,214 10,808 Prepaid expenses 255,802 115,144 Short-term investments 7,958,458 -- Assets available for sale -- 108,000 Total current assets 22,859,092 13,266,215 Property and equipment, net 407,544 285,304 Other assets 355,137 57,268 Total assets $23,621,773 $13,608,787 Liabilities and Shareholders' Equity (Deficit) Current liabilities: Accounts payable 593,228 532,327 Accrued liabilities 930,274 628,754 Accrued salary and related taxes 173,398 57,315 Warrant liability 29,696,411 -- Total current liabilities 31,393,311 1,218,396 Other long-term liabilities 57,078 -- Total liabilities 31,450,389 1,218,396 Commitments and contingencies -- -- Temporary equity: Common stock subject to continuing registration, $.001 par value; 10,810,809 shares issued and outstanding -- -- Shareholders' equity/(deficit): Common stock, $0.001 par value; authorized 200,000,000, issued and outstanding 56,529,388 and 53,834,237 shares in 2005 and 2004 67,364 53,835 Additional paid-in capital 52,105,329 47,553,497 Deficit accumulated during the development stage (59,964,840) (35,182,194) Accumulated other comprehensive gains (losses) (1,722) -- Treasury stock, at cost (34,747) (34,747) Total shareholders' equity (deficit) (7,828,616) 12,390,391 Total liabilities and shareholders' equity (deficit) $23,621,773 $13,608,787 ADVENTRX PHARMACEUTICALS, INC. AND SUBSIDIARY (A Development Stage Enterprise) Condensed Consolidated Statements of Operations Three months ended December 31, Years ended December 31, 2005 2004 2005 2004 (unaudited) (unaudited) Interest income $234,767 $58,300 $496,059 $103,042 Operating expenses: Research and development 3,020,835 691,197 8,682,498 2,744,328 General and administrative 739,831 1,702,517 4,901,002 4,018,453 Depreciation and amortization 19,123 22,110 115,545 41,309 Total operating expenses 3,779,789 2,415,824 13,699,045 6,804,090 Loss from operations (3,545,022) (2,357,524) (13,202,986) (6,701,048) Gain (loss) on fair value of warrants 1,392,732 -- (11,579,660) -- Net loss $(2,152,290) $(2,357,524) $(24,782,646) $(6,701,048) Loss per common share - basic and diluted $(0.03) $(0.04) $(0.41) $(0.13) Weighted average shares outstanding - basic and diluted 67,194,366 53,811,072 59,828,357 50,720,180 DATASOURCE: ADVENTRX Pharmaceuticals, Inc. CONTACT: Andrea Lynn of ADVENTRX Pharmaceuticals, Inc., +1-858-552-0866 Web site: http://www.adventrx.com/ Company News On-Call: http://www.prnewswire.com/comp/920134.html

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