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) DATASOURCE: ADVENTRX
Pharmaceuticals, Inc. 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. Web site: http://www.adventrx.com/ Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/920134.html
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