SAN DIEGO, Nov. 9 /PRNewswire-FirstCall/ -- ADVENTRX
Pharmaceuticals, Inc. (AMEX:ANX) today announced financial results
for the quarterly period ended September 30, 2006. ADVENTRX
reported loss from operations of $5.1 million for the third quarter
of 2006, compared with loss from operations of $3.5 million for the
third quarter of 2005. Operating expenses grew as expected and were
primarily due to the Company's ongoing clinical trials of
CoFactor(R). Net loss, which includes gain on fair value of
warrants of $498,000, was $4.6 million, or $0.06 per share, for the
third quarter of 2006, compared with a net loss, which included
loss on fair value of warrants of $13.0 million, of $16.5 million,
or $0.26 per share, for the third quarter of 2005. "In the third
quarter we continued to make significant progress in the
development of CoFactor and in the preparation of our other product
candidates for clinical development," said Evan M. Levine, ADVENTRX
chief executive officer. "In September, we announced that we
completed patient enrollment in our 300-patient CoFactor Phase IIb
clinical trial for metastatic colorectal cancer (mCRC), for which
we expect to announce data in the second half of 2007. In addition,
we continue to enroll patients and initiate sites for our CoFactor
Phase III pivotal clinical trial for mCRC, and are making
preparations for a clinical trial in refractory breast cancer. We
expect to initiate this CoFactor clinical trial in refractory
breast cancer and to file an investigational new drug application
for a bioequivalency clinical trial for ANX-530, vinorelbine
emulsion, in the fourth quarter of 2006." "In the third quarter, we
strengthened our clinical and management teams with several key
appointments. We added James Merritt, MD, an oncologist and
accomplished biopharmaceutical executive, as president and chief
medical officer, and Joachim Schupp, MD, a veteran of Novartis
Pharma AG, as vice president of medical affairs. We also brought on
Patrick Keran as general counsel and appointed Jack Lief, chairman
and chief executive officer for Arena Pharmaceuticals, and Dr. Alex
Denner, a member of the board of directors of ImClone Systems
Incorporated and a managing director of entities affiliated with
Carl Icahn, to our board of directors. I am pleased that top-tier
individuals who understand our industry appreciate the value of our
pipeline and are excited to participate in and help shape our
success." Third Quarter and First Three Quarters of 2006 Financial
Review Research and development expenses for the third quarter of
2006 were $3.2 million, versus $1.9 million for the third quarter
of 2005. This increase was due primarily to increased costs of the
Phase IIb and Phase III CoFactor clinical trials as patients
continued to be enrolled in the trials, as well as increased
preclinical costs related to drug development. General and
administrative expenses for the 2006 third quarter were $2.1
million, compared with $1.7 million for the same period in 2005.
This increase is due primarily to continuing costs related to being
a publicly-held company and costs of continuing operations in
support of research and development efforts. For the nine months
ended September 30, 2006, net loss was $22.9 million, or $0.32 per
share, compared with a net loss of $22.6 million, or $0.39 per
share, for the same period in 2005. For the first nine months of
2006, research and development expenses were $8.9 million, compared
with $5.9 million for the first nine months of 2005. The increase
for the nine months is primarily due to expenses related to
CoFactor clinical trials and hiring of personnel. General and
administrative expenses for first nine months of 2006 were $5.5
million, compared with $3.9 million for the same period in 2005.
The increase was due to factors discussed above as well as
increased personnel costs due to new hires and stock-based
compensation charges. ADVENTRX reported cash, cash equivalents and
short-term investments of approximately $17.1 million as of
September 30, 2006, compared with $22.6 million as of December 31,
2005, and no long-term debt. Subsequent to September 30, the
Company announced a registered direct offering of 14,545,000 shares
of common stock at a price of $2.75 per share for gross proceeds of
approximately $40 million. About ADVENTRX Pharmaceuticals ADVENTRX
Pharmaceuticals is a biopharmaceutical research and development
company focused on commercializing low development risk
pharmaceuticals for cancer and infectious disease that enhance the
efficacy and/or safety of existing therapies. 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 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. [Tables to Follow] ADVENTRX
PHARMACEUTICALS, INC. (A Development Stage Enterprise) Condensed
Consolidated Statements of Operations (unaudited) Three months
ended Nine months ended September 30, September 30, 2006 2005 2006
2005 Net sales $-- $-- $-- $-- Cost of goods sold -- -- -- -- Gross
margin -- -- -- -- Grant revenue -- -- -- -- Interest income
221,271 159,373 709,912 261,292 221,271 159,373 709,912 261,292
Operating expenses: Research and development 3,223,554 1,870,465
8,941,147 5,893,288 General and administrative 2,055,441 1,737,052
5,545,370 3,929,546 Depreciation and amortization 49,326 34,331
127,528 96,422 In-process research and development -- -- 10,422,130
-- Impairment loss - write off of goodwill -- -- -- -- Interest
expense -- -- -- -- Equity in loss of investee -- -- -- -- Total
operating expenses 5,328,321 3,641,848 25,036,175 9,919,256 Loss
from operations (5,107,050) (3,482,475) (24,326,263) (9,657,964)
Gain (loss) on fair value of warrants 497,869 (12,972,392)
1,434,115 (12,972,392) Loss before cumulative effect of change in
accounting principle (4,609,181) (16,454,867) (22,892,148)
(22,630,356) Cumulative effect of change in accounting principle --
-- -- -- Net loss (4,609,181) (16,454,867) (22,892,148)
(22,630,356) Preferred stock dividends -- -- -- -- Net loss
applicable to common stock $(4,609,181) $(16,454,867) $(22,892,148)
$(22,630,356) Net loss per common share - basic and diluted: $(.06)
$(.26) $(.32) $(.39) Weighted average shares - basic and diluted
73,435,715 63,255,407 70,895,528 57,346,039 ADVENTRX
PHARMACEUTICALS, INC. (A Development Stage Enterprise) Condensed
Consolidated Balance Sheets September 30, December 31, 2006 2005
(unaudited) Assets Current assets: Cash and cash equivalents
$16,201,019 $14,634,618 Accrued interest income 13,384 10,214
Prepaid expenses 916,115 255,802 Short-term investments 894,489
7,958,458 Total current assets 18,025,007 22,859,092 Property and
equipment, net 447,445 407,544 Other assets 301,305 355,137 Total
assets $18,773,757 $23,621,773 Liabilities and Shareholders'
Deficiency Current liabilities: Accounts payable $73,584 $593,228
Accrued liabilities 1,873,091 930,274 Accrued salary and related
taxes 435,911 173,398 Warrant liability 28,262,296 29,696,411 Total
current liabilities 30,644,882 31,393,311 Long-term liabilities
41,019 57,078 Total liabilities 30,685,901 31,450,389 Commitments
and contingencies Temporary equity: Common stock subject to
continuing registration, $.001 par value; 10,810,809 shares issued
and outstanding -- -- Shareholders' deficiency: Common stock,
$0.001 par value. Authorized 200,000,000 shares; issued 63,260,334
shares in 2006 and 56,529,388 shares in 2005 74,095 67,364
Additional paid-in capital 70,904,626 52,105,329 Accumulated other
comprehensive income (loss) 870 (1,722) Deficit accumulated during
the development stage (82,856,988) (59,964,840) Treasury stock,
23,165 shares at cost (34,747) (34,747) Total shareholders'
deficiency (11,912,144) (7,828,616) Total liabilities and
shareholders' deficiency $18,773,757 $23,621,773 DATASOURCE:
ADVENTRX Pharmaceuticals, Inc. CONTACT: Andrea Lynn of ADVENTRX
Pharmaceuticals, +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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