ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial results for the three months ended March 31, 2010.
"We ended the first quarter with a strong balance sheet reflecting $19.8 million in cash, against quarterly operating expenses of $2.4 million," said Brian M. Culley, ADVENTRX's Chief Executive Officer. "This capital will support our operations while we conduct stability studies from the intended commercial manufacturer of ANX-530, or Exelbine(TM), which is required to file the Exelbine New Drug Application, and also further the development of our detergent-free reformulation of the blockbuster chemotherapy drug, Taxotere®.
"We look forward to resubmitting our first NDA later this year, as well as meeting with the Food and Drug Administration to discuss the results of our bioequivalence study of ANX-514," Mr. Culley continued. "In addition, we have begun to review opportunities to enhance our product pipeline with additional drug development programs."
First Quarter Financial Results
ADVENTRX's net loss applicable to common stock for the first quarter of 2010 was $4.9 million, or $0.48 per share, compared to a net loss applicable to common stock of $3.2 million, or $0.87 per share, for the same period in 2009. Included in the net loss applicable to common stock for the first quarter of 2010 was a non-cash, deemed dividend expense of $2.5 million incurred in connection with the Company's January 2010 equity financing.
Research and development (R&D) expenses for the first quarter of 2010 were $1.2 million, a decrease of $0.4 million, or 25%, compared to $1.6 million for the same period in 2009. The decrease primarily was due to a decrease in personnel costs attributable to lower headcount in 2010 and the completion of severance payments associated with the Company's 2009 and 2008 workforce reductions by June 30, 2009, a decrease in external bioequivalence trial expenses associated with the completion of patient enrollment in the ANX-514 bioequivalence study in the first quarter of 2009, offset by increased expenses in research-related manufacturing for ANX-514 and increase in costs attributable to consulting services related to Exelbine and ANX-514.
Selling, general and administrative (SG&A) expenses for the first quarter of 2010 were $1.2 million, a decrease of $0.6 million, or 34%, compared to $1.8 million for the same period in 2009. The decrease primarily was due to a decrease in personnel costs attributable to lower headcount in 2010 as a result of the Company's workforce reductions in 2009.
Balance Sheet Highlights
As of March 31, 2010, the Company had cash of $19.8 million and stockholders' equity of $18.8 million.
Reverse Stock Split
On April 23, 2010 at 4:01 p.m. Eastern time, ADVENTRX effected a 1-for-25 reverse split of its outstanding shares of common stock. All share and per-share information in this press release reflect the reverse stock split. Share and per-share information related to dates or periods prior to April 23, 2010 have been restated to reflect retrospective application of the reverse stock split.
ADVENTRX Pharmaceuticals, Inc.