SAN DIEGO, Nov. 5, 2012 /PRNewswire/ -- ADVENTRX
Pharmaceuticals, Inc. (NYSE MKT: ANX) today reported financial
results for the quarter ended September 30,
2012.
"With a strong cash position of approximately $40 million, we are well positioned to start our
phase 3 study of ANX-188 in sickle cell disease," stated
Brian M. Culley, Chief Executive
Officer of ADVENTRX. "We are pleased that we have finalized
the protocol and completed the majority of our manufacturing
activities that will enable us to start the study by the end of
2012," Mr. Culley continued.
Third Quarter 2012 Operating Results
ADVENTRX's net loss for the third quarter of 2012 was
$3.2 million, or $0.07 per share (basic and diluted), compared to
a net loss of $3.5 million, or
$0.13 per share (basic and diluted),
for the same period in 2011.
Research and development (R&D) expenses for the third
quarter of 2012 were $1.7 million, a
decrease of $0.4 million, or 19%,
compared to $2.1 million for the same
period in 2011. The net decrease was primarily due to a
$0.8 million decrease in external
nonclinical study fees and expenses, which was offset by increases
of $0.3 million in personnel costs
and $0.1 million in external clinical
study fees and expenses. The decrease in external nonclinical study
fees and expenses resulted primarily from decreases in
research-related manufacturing expenses of $1.1 million for ExelbineTM and
$0.2 million for ANX-514. The
increase in personnel costs was primarily related to increased
headcount, including relocation and recruitment costs for our new
Chief Medical Officer.
Selling, general and administrative (SG&A) expenses for the
third quarter of 2012 were $1.8
million, a decrease of $0.2
million, or 8%, compared to $2.0
million for the same period in 2011. The decrease resulted
primarily from a decrease in consulting fees and legal expenses due
to cost-savings realized by discontinuation of commercial-readiness
activities related to Exelbine.
Transaction-related expenses for the third quarter of 2012 were
($0.3) million compared to
($0.5) million for the same
period in 2011. We recognized transaction-related expenses
for the three months ended September 30,
2012 and 2011 due to changes in the fair values at
September 30, 2012 and 2011 relative
to June 30, 2012 and 2011,
respectively, of the contingent asset and contingent liability
related to the consideration of our acquisition of SynthRx.
The net $0.3 million reduction
to transaction-related expenses was primarily due to the increase
in our stock price at September 30,
2012 relative to June 30,
2012.
Year-to-Date Operating Results
ADVENTRX's net loss for the nine months ended September 30, 2012 was $11.6 million, or $0.24 per share (basic and diluted), compared to
a net loss of $10.9 million, or
$0.43 per share (basic and diluted),
for the same period in 2011.
R&D expenses for the nine months ended September 30, 2012 were $6.0 million, an increase of $2.0 million, or 49%, compared to $4.0 million for the same period in 2011. The
increase was primarily due to a $1.0
million increase in personnel costs, a $0.7 million increase in external nonclinical
study fees and expenses and a $0.3
million increase in external clinical study fees and
expenses. The increase in personnel costs was primarily related to
increased headcount. The increase in external nonclinical study
fees and expenses was primarily related to increases in
research-related manufacturing expenses of $1.9 million for ANX-188 and $1.0 million for ANX-514, offset by a
$2.2 million decrease in
research-related manufacturing expenses related to Exelbine.
SG&A expenses for the nine months ended September 30, 2012 were $5.7 million, an increase of $0.3 million, or 7%, compared to $5.4 million for the same period in 2011. The
increase resulted primarily from a $0.6
million increase in personnel costs, mainly due to increased
headcount, and a $0.5 million
increase in share-based compensation expense, offset by a
$0.8 million decrease in consulting
fees and legal expenses.
Transaction-related expenses for the nine months ended
September 30, 2012 were ($0.2) million compared to $1.5 million for the same period in 2011.
We recognized transaction-related expenses for the nine months
ended September 30, 2012 due to
changes in the fair values at September 30,
2012 relative to December 31,
2011 of the contingent asset and contingent liability
related to the consideration for our acquisition of SynthRx.
The net $0.2 million reduction to
transaction-related expenses was primarily due to the increase in
our stock price at September 30, 2012
relative to December 31, 2011.
Transaction-related expenses for the nine months ended September 30, 2011 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 a $0.3 million reduction related
to changes in the fair value of contingent consideration related to
the SynthRx acquisition.
Balance Sheet Highlights
As of September 30, 2012, the
Company had cash, cash equivalents and short-term investments
totaling $39.9 million. Stockholders'
equity amounted to $46.3 million as
of September 30, 2012.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a biopharmaceutical company
developing proprietary product candidates to treat various diseases
and conditions. The Company's lead product candidate, ANX-188, has
potential to reduce ischemic tissue injury and end-organ damage by
restoring microvascular function, which is compromised in a
wide range of serious and life-threatening diseases and
conditions. The Company initially is developing ANX-188 as a
treatment for complications arising from sickle cell disease. 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 the Company's
planned phase 3 clinical study of ANX-188, including the nature and
timing of the study and availability of clinical trial material for
use in the study. Among the factors that could cause or
contribute to material differences between ADVENTRX's actual
results and those indicated from the forward-looking statements are
risks and uncertainties inherent in ADVENTRX's business, including,
but not limited to: the potential for delays in the commencement or
completion of planned clinical studies, including as a result of
difficulties in completing manufacturing process development
activities, manufacturing clinical trial material, meeting
applicable regulatory requirements for clinical trial material,
meeting applicable requirements of institutional review boards
overseeing clinical study sites, or being subject to a "clinical
hold"; the impact of missing or imputed data on the treatment
effect observed in the prior phase 3 study of ANX-188; the risk of
suspension or termination of a clinical study, including due to
lack of adequate funding or a "clinical hold"; ADVENTRX's reliance
on contract research organizations (CROs) and other third parties
to assist in the conduct of important aspects of its clinical
studies, and that such third parties may fail to perform as
expected; the risk that planned clinical studies are not
successfully executed and/or do not successfully demonstrate the
safety or efficacy of the investigational drug; the risk that, even
if clinical studies are successful, the FDA determines they are not
sufficient to support a new drug application; ADVENTRX's ability to
obtain additional funding on a timely basis or on acceptable terms,
or at all; the potential for ADVENTRX to delay, reduce or
discontinue current and/or planned development activities,
including clinical studies, partner its product candidates at
inopportune times or pursue less expensive but higher-risk
development paths if it is unable to raise sufficient additional
capital as needed; the risk that the FDA does not grant marketing
approval of ADVENTRX's product candidates, including ANX-188, on a
timely basis, or at all; 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
|
(In
thousands except per share data)
|
|
|
|
|
|
Three
months ended
September 30,
(Unaudited)
|
Nine
months ended
September 30,
(Unaudited)
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
Total net
revenue
|
$
—
|
$
—
|
$
—
|
$
—
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
1,658
|
2,050
|
5,976
|
4,004
|
Selling, general and
administrative
|
1,816
|
1,982
|
5,732
|
5,380
|
Transaction-related
expenses
|
(266)
|
(487)
|
(174)
|
1,541
|
Depreciation and
amortization
|
10
|
8
|
78
|
29
|
Total operating
expenses
|
3,218
|
3,553
|
11,612
|
10,954
|
|
|
|
|
|
Loss from
operations
|
(3,218)
|
(3,553)
|
(11,612)
|
(10,954)
|
|
|
|
|
|
Interest
and other income, net
|
19
|
14
|
49
|
66
|
|
|
|
|
|
Net
loss
|
$
(3,199)
|
$
(3,539)
|
$
(11,563)
|
$
(10,888)
|
|
|
|
|
|
Net loss
per share – basic and diluted
|
$
(0.07)
|
$
(0.13)
|
$
(0.24)
|
$
(0.43)
|
|
|
|
|
|
Weighted
average shares – basic and diluted
|
47,716
|
26,466
|
47,716
|
25,171
|
ADVENTRX Pharmaceuticals, Inc.
|
(A
Development Stage Enterprise)
|
Balance
Sheet Data
|
(In
thousands)
|
|
|
|
|
|
September
30,
2012
(Unaudited)
|
|
December
31,
2011
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
39,902
|
|
$
50,704
|
|
|
|
|
Working
capital
|
38,978
|
|
49,323
|
|
|
|
|
Total
assets
|
51,559
|
|
61,856
|
|
|
|
|
Total
liabilities
|
5,269
|
|
5,078
|
|
|
|
|
Stockholders' equity
|
46,290
|
|
56,779
|
(Logo:
http://photos.prnewswire.com/prnh/20120612/LA22456LOGO-a)
SOURCE ADVENTRX Pharmaceuticals, Inc.