SAN DIEGO, Nov. 7, 2011 /PRNewswire/ -- ADVENTRX
Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial
results for the third quarter ended September 30, 2011.
"Consistent with our prior guidance, we met with the FDA last
month and reached agreement on a single, additional phase 3 study
that will support approval of ANX-514 without the high-dose
corticosteroid premedication regimen required with Taxotere and
other detergent-containing formulations of docetaxel. Also,
we have scheduled a meeting with the FDA for later this quarter to
discuss ANX-188, our first-in-class treatment for sickle cell
crisis, and the design of a phase 3 pediatric study in this
indication," stated Brian M. Culley,
Chief Executive of ADVENTRX.
"Clarity with the FDA is key to the success of any clinical
program. Including the upcoming ANX-188 meeting, we will have
met with the FDA four times since September
1, which reflects our commitment to productive dialog with
the Agency and the speed at which we are advancing our late-stage
programs into their respective phase 3 studies next year,"
continued Mr. Culley.
Third Quarter 2011 Operating Results
ADVENTRX's net loss applicable to common stock for the third
quarter of 2011 was $3.5 million, or
$0.13 per share, compared to a net
loss applicable to common stock of $1.8
million, or $0.13 per share,
for the same period in 2010.
Research and development (R&D) expenses for the third
quarter of 2011 were $2.1 million, an
increase of $1.2 million, or 123%,
compared to $0.9 million for the same
period in 2010. The increase was due primarily to a $0.7 million increase in external nonclinical
trial fees and expenses, a $0.2
million increase in external clinical trial fees and
expenses and a $0.3 million increase
in personnel costs. The increase in external nonclinical
trial fees and expenses resulted primarily from increased
research-related manufacturing expenses of $0.5 million for Exelbine™ and $0.2 million for ANX-188. The increase in
external clinical trial fees and expenses was primarily related to
increased clinical consulting expenses of $0.1 million for ANX-188 and $0.1 million for ANX-514.
Selling, general and administrative (SG&A) expenses for the
third quarter of 2011 were $2.0
million, an increase of $1.1
million, or 110%, compared to $0.9
million for the same period in 2010. The increase resulted
primarily from a $0.5 million
increase in personnel costs, mainly due to additional staff hired
in 2011 and an accrual for estimated bonus expense related to 2011
performance, a $0.4 million increase
in commercial-readiness activities for Exelbine™, and a
$0.2 million increase in stock-based
compensation.
Transaction-related expenses for the third quarter of 2011 were
negative $0.5 million compared to
$0 for the same period in 2010.
ADVENTRX's remeasurement at September
30, 2011 of the fair values for the contingent asset and
contingent liability related to its consideration for the SynthRx
acquisition resulted in a net $0.5
million reduction to transaction-related expenses.
Year-to-Date Operating Results
ADVENTRX's net loss applicable to common stock for the nine
months ended September 30, 2011 was
$10.9 million, or $0.43 per share, compared to a net loss
applicable to common stock of $11.8
million, or $0.94 per share,
for the same period in 2010. Included in the net loss applicable to
common stock for the nine months ended September 30, 2010 was a non-cash, deemed
dividend expense of $5.6 million
incurred in connection with the Company's January and May 2010 equity financings.
R&D expenses for the nine months ended September 30, 2011 were $4.0 million, an increase of $1.2 million, or 43%, compared to $2.8 million for the same period in 2010. The
increase was due primarily to a $0.4
million increase in external clinical trial fees and
expenses, a $0.4 million increase in
external nonclinical trial fees and expenses and a $0.4 million increase in personnel costs.
The increase in external clinical trial fees and expenses was
primarily related to increased clinical consulting expenses of
$0.2 million for ANX-188 and
$0.1 million for ANX-514, as well as
a $0.1 million increase for
consulting expenses related to Exelbine Study 530-01 clinical site
inspections. The increase in external nonclinical trial fees
and expenses resulted primarily from increases in research-related
manufacturing expenses of $0.8
million for Exelbine and $0.3
million for ANX-188, offset by a $0.7
million decrease in regulatory and research-related
manufacturing expenses for ANX-514.
SG&A expenses for the nine months ended September 30, 2011 were $5.4 million, an increase of $2.0 million, or 57%, compared to $3.4 million for the same period in 2010. The
increase resulted primarily from a $0.9
million increase in personnel costs, mainly due to
additional staff hired in 2011 and an accrual for estimated bonus
expense related to 2011 performance, a $0.7
million increase in commercial-readiness activities for
Exelbine, a $0.3 million increase in
accounting, investor relations and business development
professional fees and consulting services and a $0.1 million increase in the cost of ADVENTRX's
facilities lease.
Transaction-related expenses for the nine months ended
September 30, 2011 were $1.5 million compared to $0 for the same period in 2010.
Transaction-related expenses consisted of $1.8 million related to legal, accounting,
financial and business development advisory fees associated with
the evaluation of potential acquisition targets, including SynthRx,
and the execution of the SynthRx acquisition, offset by a
$0.3 million reduction related to
changes in the fair value of the contingent asset and contingent
liability related to its consideration for the SynthRx
acquisition.
Balance Sheet Highlights
As of September 30, 2011, the
Company had cash, cash equivalents and short-term investments
totaling $38.3 million.
Stockholders' equity amounted to $43.2
million as of September 30,
2011.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a specialty pharmaceutical company
focused on developing proprietary product candidates. The
Company's current lead product candidates are ANX-188, a novel,
purified, rheologic and antithrombotic compound initially being
developed as a first-in-class treatment for pediatric patients with
sickle cell disease in acute crisis, and ANX-514, a novel,
detergent-free formulation of the chemotherapy drug docetaxel.
More information can be found on the Company's web site at
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 are based on ADVENTRX's current
expectations and assumptions. Such forward-looking statements
include, but are not limited to, statements regarding prospects for
ultimate approval of a new drug application for ANX-514 based on a
single, additional phase 3 study, prospects for approval of ANX-514
without the high-dose corticosteroid premedication regimen required
with Taxotere® treatment and the pace at which ADVENTRX is
advancing its development programs. Actual events or results may
differ materially from those expressed or implied by the
forward-looking statements in this press release due to a number of
risks and uncertainties, including, without limitation: the risk
that ADVENTRX is unable to raise sufficient capital to fund
development of its product candidates, including its planned phase
3 clinical trials of ANX-188 and ANX-514; the potential for
difficulties or delays in reaching agreement with the FDA on the
clinical development of ANX-188; the potential for difficulties or
delays in completing manufacturing process development activities
and manufacturing material for and/or in completing enrollment of
the planned phase 3 clinical trials and any other clinical studies;
uncertainty regarding the impact of eliminating corticosteroid
premedication on the incidence and severity of adverse events for
patients receiving ANX-514 in the planned phase 3 clinical trial;
the risks that the planned phase 3 clinical trials for ANX-188 and
ANX-514 are not successful and, even if they are successful, that
the FDA could determine they are not sufficient to support NDAs for
ANX-188 and/or ANX-514 or, in the case of ANX-514, to eliminate
corticosteroid premedication; the risk that the FDA does not grant
market approval of ANX-188 and/or ANX-514 on a timely basis, or at
all; ADVENTRX's reliance on third parties to assist in the conduct
of important aspects of its product candidates' development
programs, including the manufacture of clinical trial material, the
conduct of clinical trials and regulatory submissions related to
product approval, and that such third parties may fail to perform
as expected; 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
www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. ADVENTRX
does not intend to revise or update any forward-looking statement
set forth in this press release to reflect events or circumstances
arising after the date hereof, except as may be required by
law.
[Tables to Follow]
ADVENTRX
Pharmaceuticals, Inc.
(A
Development Stage Enterprise)
Condensed
Consolidated Statements of Operations
(Unaudited)
(In 000's
except per share data)
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
*
|
|
|
|
|
|
|
|
Total net
revenue
|
$
-
|
$
-
|
$
-
|
$
-
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
2,050
|
918
|
4,004
|
2,791
|
|
Selling, general
and administrative
|
1,982
|
945
|
5,380
|
3,423
|
|
Transaction-related expenses
|
(487)
|
-
|
1,541
|
-
|
|
Depreciation
and amortization
|
8
|
5
|
29
|
17
|
|
Total
operating expenses
|
3,553
|
1,868
|
10,954
|
6,231
|
|
|
|
|
|
|
|
Loss from operations
|
(3,553)
|
(1,868)
|
(10,954)
|
(6,231)
|
|
|
|
|
|
|
|
Interest and other
income
|
14
|
24
|
66
|
65
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(3,539)
|
(1,844)
|
(10,888)
|
(6,166)
|
|
|
|
|
|
|
|
Provision for income
taxes
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Net loss
|
(3,539)
|
(1,844)
|
(10,888)
|
(6,166)
|
|
|
|
|
|
|
|
Deemed dividends on preferred
stock
|
-
|
-
|
-
|
(5,640)
|
|
|
|
|
|
|
|
Net loss applicable to common
stock
|
$ (3,539)
|
$
(1,844)
|
$ (10,888)
|
$ (11,806)
|
|
|
|
|
|
|
|
Net loss per share – basic and
diluted
|
$ (0.13)
|
$
(0.13)
|
$
(0.43)
|
$
(0.94)
|
|
|
|
|
|
|
|
Weighted average shares – basic
and diluted
|
26,466
|
14,701
|
25,171
|
12,594
|
|
|
|
|
|
|
.
|
* Share and per share
information related to dates or periods prior to April 23, 2010
have been restated to reflect retrospective application of the
1-for-25 reverse split of outstanding common stock that took place
on that date
|
|
|
|
ADVENTRX
Pharmaceuticals, Inc.
(A
Development Stage Enterprise)
Balance
Sheet Data
(In
000's)
|
|
|
September
30,
2011
(Unaudited)
|
|
December
31,
2010
|
|
|
|
|
|
|
Total cash, cash
equivalents and short-term investments
|
$
38,292
|
|
$
27,979
|
|
|
|
|
|
|
Working capital
|
35,916
|
|
26,608
|
|
|
|
|
|
|
Total assets
|
46,275
|
|
28,487
|
|
|
|
|
|
|
Total
liabilities
|
3,122
|
|
1,801
|
|
|
|
|
|
|
Stockholders'
equity
|
43,153
|
|
26,685
|
|
|
|
|
|
|
|
SOURCE ADVENTRX Pharmaceuticals, Inc.