SAN DIEGO, March 25 /PRNewswire-FirstCall/ -- ADVENTRX
Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial
results for the fourth quarter and year ended December 31, 2008.
"2008 was a transition year for ADVENTRX in which we advanced a new
business model focused on lower-risk reformulations of
previously-approved drugs. We achieved important milestones with
our new lead programs, but given the difficult economic
environment, we were unable to attract financing on terms that
would allow us to pursue their commercialization," said Brian M.
Culley, ADVENTRX's Chief Business Officer. "As a result, over the
past several months, we have implemented significant
cost-containment measures and, in December, publicly announced that
we were exploring strategic options as a means to continue the
necessary activities, whether by us or a partner, to bring our lead
product candidates to market." Three-Month Period Ended December
31, 2008 Operating Results ADVENTRX's net loss was $7.5 million, or
$0.08 per share, for the three-month period ended December 31,
2008, compared to a net loss of $5.4 million, or $0.06 per share,
for the same period in 2007. Included in the net loss for the
three-month period ended December 31, 2008 were non-cash,
share-based compensation expenses amounting to $0.2 million,
compared to $0.5 million for the same period in 2007. Research and
development, or R&D, expenses increased by $1.0 million, or
25%, to $4.8 million for the three-month period ended December 31,
2008, from $3.9 million for the same period a year ago. The
increase was primarily due to a $2.3 million increase in expenses
related to external research-related manufacturing and regulatory
and quality assurance activities related to ANX-530 and ANX-514, a
$0.4 million increase in external clinical trial expenses related
to ANX-514 and a $0.1 million increase in personnel costs, offset
by a $1.6 million decrease in external clinical trial expenses
related to ANX-510, or CoFactor(R), and ANX-530 and a $0.2 million
decrease in non-cash, stock-based compensation expenses. R&D
expenses for the three-month period ended December 31, 2008
included non-cash, stock-based compensation expenses amounting to
$0.1 million compared to $0.3 million for the same period a year
ago. Selling, general and administrative, or SG&A, expenses
increased by $0.8 million, or 40%, to $2.6 million for the
three-month period ended December 31, 2008, from $1.9 million for
the same period a year ago. The increase was substantially due to a
$0.6 million increase in severance expenses, a $0.2 million
increase for consulting expenses related to market research and a
$0.1 million increase in professional services, offset by a $0.1
million decrease in non-cash, stock-based compensation expenses.
SG&A expenses for the three-month period ended December 31,
2008 included non-cash, stock-based compensation expenses amounting
to $0.1 million, compared to $0.3 million for the same period a
year ago. Interest income amounted to $18,000 for the three-month
period ended December 31, 2008, compared to $438,000 for the same
period a year ago. The decrease in interest income was primarily
attributable to lower invested balances and interest rates. Year
2008 Operating Results ADVENTRX's net loss was $26.6 million, or
$0.30 per share, for 2008, compared to a net loss of $22.1 million,
or $0.25 per share, for 2007. Included in the loss for 2008 were
non-cash, share-based compensation expenses amounting to $1.6
million compared to $2.5 million for the same period in 2007.
R&D expenses increased by $2.0 million, or 12%, to $17.9
million for 2008, from $15.9 million for 2007. The increase was
primarily due to a $6.2 million increase in expenses related to
external research-related manufacturing and regulatory and quality
assurance activities related to ANX-530 and ANX-514, a $1.3 million
increase in external clinical trial expenses related to ANX-514 and
a $0.2 million increase in personnel costs, offset by a $5.4
million decrease in external clinical trial expenses related to
CoFactor and ANX-530 and a $0.3 million decrease in non-cash,
stock-based compensation expenses. R&D expenses for 2008
included non-cash, stock-based compensation expenses amounting to
$0.7 million, compared to $1.0 million for 2007. SG&A expenses
increased by $1.0 million, or 12%, to $9.7 million for 2008, from
$8.7 million for 2007. The increase was substantially due to a $0.7
million increase in severance expenses, a $0.4 million increase for
consulting expenses related to market research, a $0.3 million
increase in personnel expenses and $0.1 million increase in
professional services, offset by a $0.5 million decrease in
non-cash, stock-based compensation expenses. SG&A expenses for
2008 included non-cash, stock-based compensation expenses amounting
to $0.9 million, compared to $1.4 million for 2007. Revenue of
$500,000 in 2008 represents a portion of a settlement payment from
Theragenex, LLC. In May 2008, we settled a dispute with Theragenex
arising out of its alleged breach of a license agreement and, in
accordance with such settlement, Theragenex paid us $0.6 million.
We recognized $0.5 million as revenue, and the remainder, $0.1
million, as other income. Interest income and other income amounted
to $0.7 million for 2008, compared to $2.2 million in 2007. The
decrease in interest income and other income was primarily
attributable to lower interest income based on lower invested
balances, offset by $0.1 million received as part of the Theragenex
settlement, which was recorded as other income. Balance Sheet
Highlights As of December 31, 2008, the Company had cash and cash
equivalents totaling $9.8 million. Stockholders' equity amounted to
$6.0 million as of December 31, 2008. Non-Reliance on Previously
Issued Financial Statements On March 20, 2009, the Company's
management concluded that ADVENTRX's consolidated financial
statements contained in its annual report on Form 10-K for the year
ended December 31, 2007 and its quarterly reports on Form 10-Q for
the periods ended March 31, June 30 and September 30, 2007 and
March 31, June 30 and September 30, 2008 should no longer be relied
upon. ADVENTRX intends to correct the misstatements in those
financial statements in its annual report on Form 10 K for the year
ended December 31, 2008, which it anticipates filing before March
31, 2009. The misstatements occurred as a result of the erroneous
application of generally accepted accounting principles related to
accounting for warrant liability. In connection with ADVENTRX's
adoption on January 1, 2007 of Financial Accounting Standards Board
Staff Position No. EITF 00-19-2, "Accounting for Registration
Payment Arrangements" ("FSP EITF 00-19-2"), it erroneously
retrospectively applied FSP EITF 00-19-2 to the years ended
December 31, 2005 and December 31, 2006. However, the effect of
this misapplication of FSP EITF 00-19-2 related entirely to
non-cash line items. It had no impact on ADVENTRX's current assets
(e.g., cash, cash equivalents and short-term investments) or its
operating expenses and did not affect any loan covenants or other
contractual requirements. About ADVENTRX Pharmaceuticals ADVENTRX
Pharmaceuticals is a biopharmaceutical company whose product
candidates are designed to improve the safety and commercial
potential of existing cancer treatments. In December 2008, the
Company announced that it is exploring a range of strategic
options, including the sale or disposition of one or more of its
product candidate programs, a strategic business merger and other
transactions that maximize the value of the Company's assets. In
January and March 2009, the Company announced headcount reductions
and cost containment measures to provide additional time to
consummate a strategic transaction. More information can be found
on the Company's web site at http://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 involve risks and
assumptions that, if they materialize or do not 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. These risks and uncertainties include,
but are not limited to: the risk that ADVENTRX will be unable to
consummate a strategic or partnering transaction or raise
sufficient capital to continue as a going concern; the risk that
the Company's recent cost-cutting measures, including those
announced on March 20, 2009, will negatively impact the Company's
ability to consummate a strategic transaction; the risk that the
Company will be unable to consummate a strategic or partnering
transaction or raise sufficient capital and will be unable to
continue as a going concern; the risk that the departure of the
Company's former Chief Executive Officer and President, the
Company's Executive Vice President and Chief Financial Officer
and/or the Company's leadership by a committee of executive
officers will negatively impact the Company's ability to consummate
a strategic transaction or to maintain effective disclosure
controls and procedures or internal control over financial
reporting; the risk that the Company's stockholders will not
approve a strategic or capital-raising transaction recommended by
the Company's Board of Directors; 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. ADVENTRX does not intend to update
any forward-looking statement 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) 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, 2008 2007 2008 2007 (unaudited)
(unaudited) Revenues $- $- $500 $500 Operating expenses: Research
and development 4,849 3,887 17,922 15,934 In-process research and
development - - - - Selling, general and administrative 2,644 1,884
9,720 8,679 Depreciation and amortization 37 48 168 198 Total
operating expenses 7,530 5,819 27,810 24,811 Loss from operations
(7,530) (5,819) (27,310) (24,311) Interest / Other income 18 438
663 2,169 Loss before income taxes (7,512) (5,381) (26,647)
(22,142) Provision for income taxes - - - - Net loss $(7,512)
$(5,381) $(26,647) $(22,142) Net loss per share -basic and diluted
$(0.08) $(0.06) $(0.30) $(0.25) Weighted average shares - basic and
diluted 90,253 90,253 90,253 89,913 Balance Sheet Data: 2008 2007
Total cash and investments in securities $9,850 $33,463 Net working
capital 5,736 30,658 Total assets 10,709 34,542 Total liabilities
4,714 3,507 Stockholders' equity 5,995 31,035 DATASOURCE: ADVENTRX
Pharmaceuticals, Inc. CONTACT: Mark Erwin of ADVENTRX
Pharmaceuticals, Inc., +1-858-761-6169, Web Site:
http://www.adventrx.com/
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