DVENTRX Reports Second Quarter Financial Results: STRONG BALANCE SHEET + NEW ACQUISITIONS+ RESUBMIT IT IN THE 4TH QUARTER+...
9:17a ET August 6, 2010 (PR NewsWire)
ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial results for the three and six months ended June 30, 2010.
"As we approach the midpoint of the third quarter, we remain focused on submitting a New Drug Application for Exelbine and reaffirm our intention to submit the Exelbine NDA in the fourth quarter of this year," said Brian M. Culley, ADVENTRX's Chief Executive Officer.
"We are also exploring an expansion of our product pipeline and have found that, as a result of the difficult financing environment, many programs with substantial potential are available at attractive valuations," Mr. Culley continued. "We believe our strong balance sheet, reflecting over $30 million in cash at June 30, will provide us with substantial leverage in any acquisition or merger discussions."
Second Quarter Financial Results
ADVENTRX's net loss applicable to common stock for the second quarter of 2010 was $5.0 million, or $0.39 per share, compared to net loss applicable to common stock of $3.8 million, or $1.02 per share, for the same period in 2009. Included in net loss applicable to common stock for the three months ended June 30, 2010 and 2009 were non-cash, deemed dividend expenses of $3.1 million and $1.2 million, respectively, related to the Company's May 2010 and June 2009 registered direct equity financings.
Research and development (R&D) expenses for the second quarter of 2010 were $0.6 million, a decrease of $0.8 million, or 56%, compared to $1.5 million for the same period in 2009. The decrease was due primarily to a $0.8 million decrease in external nonclinical study fees and expenses, attributable to a $1.0 million decrease in research-related manufacturing expenses for Exelbine and ANX-514, offset by a $0.2 million increase in fees for consulting services related to Exelbine and ANX-514.
Selling, general and administrative (SG&A) expenses for the second quarter of 2010 were $1.3 million, an increase of $0.2 million, or 22%, compared to $1.1 million for the same period in 2009. SG&A expenses for the three months ended June 30, 2009 were lower due primarily to a $0.2 million non-cash credit recorded in that period, which adjustment was made to correct an over-accrual of severance-related expenses in prior periods. Excluding the severance-related expenses adjustment, SG&A expenses for the three months ended June 30, 2010 and 2009 were comparable.
Year-to-Date Financial Results
ADVENTRX's net loss applicable to common stock for the six months ended June 30, 2010 was $10.0 million, or $0.86 per share, compared to net loss applicable to common stock of $7.0 million, or $1.90 per share, for the same period in 2009. Included in net loss applicable to common stock for the six months ended June 30, 2010 and 2009 were non-cash, deemed dividend expenses of approximately $5.6 million and $1.2 million, respectively, related to the Company's January and May 2010 and June 2009 registered direct equity financings.
R&D expenses for the first half of 2010 were $1.9 million, a decrease of $1.2 million, or 40%, compared to $3.1 million for the same period in 2009. The decrease was due primarily to a $0.7 million decrease in personnel costs attributable to lower headcount and the absence of severance costs in 2010 and a $0.5 million decrease in external bioequivalence trial expenses.
SG&A expenses for the first half of 2010 were $2.5 million, a decrease of $0.4 million, or 13%, compared to $2.9 million for the same period in 2009. The decrease was due primarily to a $0.5 million decrease in personnel costs attributable to lower headcount and the absence of severance costs in 2010, a $0.2 million decrease in fees for professional legal, audit and tax services and a $0.1 million decrease in the cost of the Company's facilities lease, offset by a $0.3 million increase in director compensation and stock compensation expense and a $0.1 million increase in fees for accounting, investor relations and commercialization consulting services.
Balance Sheet Highlights
As of June 30, 2010, the Company had cash of $31.2 million and stockholders' equity of $30.5 million.
Reverse Stock Split
All share and per-share information in this press release reflect the 1-for-25 reverse split of the Company's outstanding common stock that took place on April 23, 2010 at 4:01 p.m. Eastern time. All 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.
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