ADVENTRX Pharmaceuticals Reports Second Quarter 2008 Financial Results and Business Update
"During the second quarter of this year, we continued to make advanceswith respect to the on-going development and our commercialization plans forboth ANX-530 (vinorelbine emulsion) as well as ANX-514 (docetaxel emulsion),"stated Evan M. Levine, Chief Executive Officer and President of ADVENTRX. "Wecontinued to make progress with regard to the preparation of our NDAsubmission for ANX-530 as well as conducting our registrational bioequivalenceclinical study of ANX-514. Furthermore, we made a considerable investment ofcapital this quarter in order to initiate large scale manufacturing to preparefor the commercial launch of both ANX-530 and ANX-514. This is a significantendeavor that will help enable us to successfully launch these productcandidates if they are approved. As well, we announced response rate datafrom 2 separate studies of CoFactor(R), our third oncology product candidate.We continue to evaluate CoFactor and expect to provide further updates withrespect to the program as we gather additional data."
Three-Month Period Ended June 30, 2008 Operating Results
ADVENTRX's net loss was $6.4 million, or $0.07 per share, for thethree-month period ended June 30, 2008, compared to a net loss of $5.7million, or $0.06 per share, for the same period in 2007. Included in the netloss for the three-month period ended June 30, 2008 were non-cash, share-basedcompensation expenses amounting to $0.4 million, compared to $0.6 million forthe same period in 2007.
In May 2008, the Company settled its dispute with Theragenex. Inconsideration of and conditioned upon Theragenex paying the Company $0.6million, the parties agreed to jointly move to dismiss the underlyingarbitration action, and in connection with dismissing the arbitration, agreedto release each other from any and all claims related to their pastrelationship, including Theragenex's rights under their prior agreement. Forthe three-month period ended June 30, 2008, the Company recognized $0.5million in licensing revenue, which represents a portion of the $0.6 millionTheragenex settlement payment. The additional $0.1 million was recognized asother income.
Research and development, or R&D, expenses increased by $0.3 million, or6%, to $4.5 million for the three-month period ended June 30, 2008, from $4.2million for the same period a year ago. The increase was primarily due to a$1.3 million increase in expenses related to external research-relatedmanufacturing and regulatory and quality assurance activities related toANX-530 and ANX-514, offset by a $0.8 million decrease in external clinicaltrial expenses related to ANX-530 and ANX-510, or CoFactor, a decrease of $0.1million personnel and related costs and a $0.1 million decrease in share-basedcompensation expense. R&D expenses for the three-month period ended June 30,2008 included non-cash, share-based compensation expense amounting to $0.1million, compared to $0.2 million for the same period a year ago.
Selling, general and administrative, or SG&A, expenses increased by $0.6million, or 31%, to $2.6 million for the three-month period ended June 30,2008, from $2.0 million for the same period a year ago. The increase wasprimarily due to a $0.2 million severance expense related to the departure ofour former chief financial officer in April 2008, as well as an increase of$0.4 million in consulting expenses for tax services, market research forANX-530 and legal expenses related to the Theragenex settlement. SG&A expensesfor the three-month period ended June 30, 2008 included non-cash, share-basedcompensa
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