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ADVENTRX Pharmaceuticals Inc. (ANX) Reports Fourth Quarter and Full Year 2011 Financial Results  
3/8/2012 10:10:20 AM

SAN DIEGO, March 7, 2012 /PRNewswire/ -- ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial results for the fourth quarter and year ended December 31, 2011.

"We are pleased to begin 2012 with a strong cash position of over $50 million, which will be used to fund our planned phase 3 study of ANX-188 in patients with sickle cell disease," stated Brian M. Culley, Chief Executive Officer of ADVENTRX.

Fourth Quarter 2011 Operating Results

ADVENTRX's net loss applicable to common stock for the fourth quarter of 2011 was $2.4 million, or $0.06 per share (basic and diluted), compared to a net loss applicable to common stock of $2.3 million, or $0.15 per share (basic and diluted), for the same period in 2010.

Research and development (R&D) expenses for the fourth quarter of 2011 were $1.8 million, an increase of $0.9 million, or 95%, compared to $0.9 million for the same period in 2010. The increase was due primarily to a $0.6 million increase in external nonclinical study fees and expenses, a $0.2 million increase in personnel costs, and a $0.1 million increase in external clinical study fees. The increases in external fees and expenses were primarily related to research-related manufacturing activities and consulting expenses for ANX-188. The increase in personnel costs resulted from additional clinical and research-related manufacturing staff hired in 2011.

Selling, general and administrative (SG&A) expenses for the fourth quarter of 2011 were $1.8 million, an increase of $0.2 million, or 13%, compared to $1.6 million for the same period in 2010. The increase resulted primarily from an increase in personnel costs, mainly due to additional staff hired in 2011.

Transaction-related expenses for the fourth quarter of 2011 were negative $1.1 million compared to positive $0.3 million for the same period in 2010. Transaction-related expenses for the fourth quarter of 2011 consisted of negative $1.1 million associated with changes since September 30, 2011 in the fair value of the contingent asset and contingent liability related to the SynthRx acquisition. Transaction-related expenses for the fourth quarter of 2010 consisted of $0.3 million related to legal, financial and business development advisory fees associated with the evaluation of potential acquisition targets, including SynthRx.

Full Year 2011 Operating Results

ADVENTRX's net loss applicable to common stock for the year ended December 31, 2011 was $13.3 million, or $0.47 per share (basic and diluted), compared to a net loss applicable to common stock of $14.1 million, or $1.07 per share (basic and diluted), for 2010. Included in the net loss applicable to common stock for the year ended December 31, 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 year ended December 31, 2011 were $5.8 million, an increase of $2.1 million, or 56%, compared to $3.7 million for 2010. The increase in R&D expenses in 2011 compared to 2010 was due primarily to a $1.0 million increase in external nonclinical study fees and expenses, a $0.6 million increase in personnel costs and a $0.5 million increase in external clinical study fees and expenses. The increase in external nonclinical study fees and expenses was primarily related to research-related manufacturing activities and consulting expenses of $1.0 million for ANX-188 and increased commercial-readiness manufacturing and consulting expenses of $0.5 million for Exelbine. These increases were offset by a $0.5 million decrease in research-related manufacturing activities and consulting expenses for ANX-514. The increase in personnel costs resulted from additional clinical and research-related manufacturing staff hired in 2011. The increase in external clinical study fees and expenses was primarily related to increased clinical consulting expenses of $0.4 million for ANX-188 and increased consulting expenses of $0.1 million for Exelbine related to study site inspections.

SG&A expenses for the year ended December 31, 2011 were $7.2 million, an increase of $2.2 million, or 44%, compared to $5.0 million for 2010. The increase resulted primarily from a $0.9 million increase in commercial-readiness activities for Exelbine, a $0.9 million increase in personnel costs, mainly due to additional staff hired in 2011, a $0.2 million increase in investor relations consulting expenses, a $0.1 million increase in share-based compensation expense and a $0.1 million increase in facility costs.

Transaction-related expenses for the year ended December 31, 2011 were $0.4 million compared to $0.3 million for 2010. Transaction-related expenses for 2011 consisted of $1.9 million related to legal, accounting, financial and business development advisory fees associated with the evaluation of potential acquisition targets, including SynthRx, and execution of the SynthRx acquisition, offset by a $1.5 million reduction due to changes since the acquisition date in the fair value of the contingent asset and contingent liability related to the SynthRx acquisition. Transaction-related expenses for 2010 consisted of $0.3 million related to legal, financial and business development advisory fees associated with the evaluation of potential acquisition targets, including SynthRx.

Balance Sheet Highlights

As of December 31, 2011, the Company had cash, cash equivalents and short-term investments totaling $50.7 million. Stockholders' equity amounted to $56.8 million as of December 31, 2011.

About ADVENTRX Pharmaceuticals

ADVENTRX Pharmaceuticals is a biopharmaceutical company focused on developing proprietary product candidates. The Company's lead product candidate is ANX-188, a rheologic, antithrombotic and cytoprotective agent that improves microvascular blood flow and has potential application in treating a wide range of diseases and conditions, such as complications arising from sickle cell disease. We also are developing 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.


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