Stock Alert for ADVENTRX Pharmaceuticals Inc. ($ANX)

ADVENTRX Pharmaceuticals Inc. (AMEX: ANX)

ADVENTRX Pharmaceuticals Inc. (ANX) is a development-stage biopharmaceutical company. The Company’s business is focused on in-licensing, developing and commercializing product candidates for the treatment of cancer. Its lead product candidates, ANX-530 and ANX-514, are emulsion formulations of marketed chemotherapy drugs. ANX is focused primarily on evaluating strategic options, including the sale or exclusive license of one or more of its product candidate programs, a strategic business merger and other similar transactions. In October 2008, ANX announced that it had discontinued active work on all product candidates other than ANX-530 and ANX-514. Its wholly owned subsidiaries include SD Pharmaceuticals Inc. (SDP) and ANX (Europe) Ltd.

The Company was founded in 1995 and is based in San Diego, California.

Share Statistics (22-Apr-10)			FY 2007	FY 2008	% Chg	Q4 2008	Q4 2009	% Chg
Symbol	ANX	Revenue, $Mn	0.5M	0.5M	0.0%	0.0M	0.0M	n/a
Current price	$0.20	Gross marg.	n/a	n/a	n/a	n/a	n/a	n/a
52wk Range:	$0.52-0.09	Oper. margin	-4862%	-5462%	12.3%	-n/m	-n/m	n/a
Avg Vol (3m):	10,655,200	Net margin	-44200%	-53200%	20.4%	-n/m	-n/m	n/a
Market Cap.	52.73M
Dil. Shares Outst.	257.2M	EPS, $	-0.25	-0.30	20.0%	-0.08	-0.04	50.0%

Source: Reuters.com, SEC Filings.

Financial Summary

ANX’s net loss applicable to common stock for the fourth quarter of 2009 was $6.5 million, or $0.04 per share, compared to a net loss applicable to common stock of $7.5 million, or $0.08 per share, for the same period in 2008. Included in the net loss applicable to common stock for the fourth quarter of 2009 was a non-cash, deemed dividend expense of $3.3 million incurred in connection with the Company’s October 2009 equity financing.

Research and development (R&D) expenses for the fourth quarter of 2009 were $2.0 million, a decrease of $2.9 million, or 59%, compared to $4.8 million for the same period in 2008. The decrease primarily was due to a $1.5 million decrease in expenses related to external research-related manufacturing and regulatory and quality assurance activities related to ANX-530 and ANX-514, a $0.7 million decrease in personnel costs, a $0.6 million decrease in external clinical trial expenses related to ANX-514 and a $0.1 million decrease in non-cash, stock-based compensation expenses.

Selling, general and administrative (SG&A) expenses for the fourth quarter of 2009 were $1.3 million, a decrease of $1.4 million, or 53%, compared to $2.6 million for the same period in 2008. The decrease primarily was due to a $0.5 million decrease in personnel costs, a $0.5 million decrease in severance expenses, a $0.4 million decrease in legal and professional services, a $0.3 million decrease in consulting expenses, and a $0.1 million decrease in insurance expenses, offset in part by a $0.5 million increase in year-end bonus accrual.

Full-Year 2009 Operating Results

ANX’s net loss applicable to common stock for 2009 was $16.2 million, or $0.14 per share, compared to a net loss applicable to common stock of $26.6 million, or $0.30 per share, for 2008. Included in the net loss applicable to common stock for 2009 was a non-cash deemed dividend expense of $4.9 million incurred in connection with the Company’s June, July, August and October 2009 equity financings. Also included in the net loss applicable to common stock for 2009 were charges associated with the Company’s reductions in force completed in October 2008, and January and April 2009.

R&D expenses for 2009 were $6.5 million, a decrease of $11.4 million, or 64%, compared to $17.9 million for 2008. The decrease primarily was due to a $2.9 million decrease in nonclinical expenses related to ANX-514, a $2.5 million decrease in personnel costs, a $2.0 million decrease in nonclinical expenses related to ANX-530, a $1.8 million decrease in external clinical trial expenses related to the completion of ANX-510 studies, a $0.7 million decrease in external clinical trial expenses associated with the completion of patient enrollment in the ANX-514 bioequivalence study in the first quarter of 2009 and a $0.4 million decrease in nonclinical expenses related to various other product candidate projects that were discontinued in 2009 as part of cost reduction efforts. R&D expenses for 2009 included non-cash, stock-based compensation expenses amounting to $42,000, compared to $0.7 million for 2008.

SG&A expenses for 2009 were $5.0 million, a decrease of $4.7 million, or 49%, compared to $9.7 million for 2008. The decrease primarily was due to a $1.8 million decrease in personnel costs, a $0.9 million decrease in legal and professional services, a $0.6 million decrease in severance related costs, a $0.5 million decrease for consulting, Sarbanes-Oxley compliance and recruiting services, a $0.3 million decrease in non-cash, stock-based compensation expense, a $0.3 million decrease in travel expenses, a $0.2 million decrease for market research expenses and a $0.1 million decrease in insurance related expenses. SG&A expenses for 2009 included non-cash, stock-based compensation expenses amounting to $0.5 million, compared to $0.9 million for 2008.

Balance Sheet Highlights

As of December 31, 2009, the Company had cash totaling $8.7 million and working capital of $6.6 million. Stockholders’ equity amounted to $6.7 million as of December 31, 2009. Taking into account net proceeds of $14.0 million from the equity financing completed in January 2010, pro forma cash and pro forma working capital at December 31, 2009, were $22.7 million and $20.6 million, respectively.

Financial Strength (22-Apr-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	3.81	2.82	2.62	0.80
Current Ratio (MRQ)	3.81	3.29	3.12	0.95
Long-Term Debt to Equity (MRQ)	0.00	10.90	25.49	148.69
Total Debt to Equity (MRQ)	0.00	15.92	32.81	212.19

Source: Reuters.com, SEC Filings.

Analyst Consensus

No chart available.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=ANX

Investment Highlights

ANX recently announced that it has resolved the stockholders’ equity continued listing deficiencies originally identified by the NYSE Amex in a June 2009 letter to the Company. In part to address the NYSE Amex’s requirement that the Company address its low stock price, ANX also announced that its board of directors has approved a 1-for-25 reverse split of its common stock, which was authorized by its stockholders at a special meeting held in August 2009. The Company’s common stock will begin trading on a split adjusted basis on the NYSE Amex when the market opens on Monday, April 26, 2010.

In June 2009, the NYSE Amex notified the Company that it was not in compliance with the NYSE Amex’s continued listing standards related to stockholders’ equity. Through financing activity in 2009, ANX increased its stockholder’s equity to approximately $6.7 million as of December 31, 2009, which exceeds continued listing standards related to stockholders’ equity. In April 2010, the NYSE Amex notified the Company that, based on a review of publicly available information, ANX has resolved the continued listing deficiencies originally identified in the June 2009 letter. According to the April 2010 letter, the Company must demonstrate compliance with the continued listing standards for two consecutive quarters and/or by December 1, 2010, otherwise the NYSE Amex may initiate delisting procedures. In part, as a result of a financing completed in January 2010, the Company anticipates complying with continued listing standards related to stockholders’ equity at March 31, 2010.

The reverse stock split is intended to satisfy the NYSE Amex’s determination in the June 2009 letter that it is appropriate for the Company to effect a reverse stock split to address its low price per share and that, if a reverse stock split is not completed within a reasonable amount of time, the NYSE Amex may initiate delisting procedures. The Company also believes that a higher share price could broaden ANX’s appeal to investors, in addition to reducing per share transaction fees and certain administrative costs.

The reverse split will be effective upon the close of trading on Friday, April 23, 2010, and the Company’s common stock will begin trading on a split adjusted basis on the NYSE Amex when the market opens on Monday, April 26, 2010. The reverse split will reduce the number of shares of the Company’s common stock outstanding from approximately 257 million to approximately 10.3 million. Proportional adjustments will be made to ANX’s outstanding stock options, warrants and other equity awards and to its equity compensation plans. Par value and the number of authorized shares of common stock will not change. The Company will not issue any fractional shares. Stockholders will receive cash in lieu of fractional shares to which they would otherwise be entitled.

Source: http://www.adventrx.com/

Technical Analysis

Source: http://stockcharts.com

ANX is below its 50-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

ANX is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for ANX currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Apr-22-2010	symbol	Share, $	$ Mn	2009	2010	2009	2010
Telik Inc.	TELK	1.03	55.03M	n/a	n/a	n/a	n/a
SuperGen Inc.	SUPG	3.38	203.53M	42.59	n/a	5.14	n/a
Adherex Tech Inc. (USA)	ADHXF	0.04	5.64M	n/a	n/a	n/a	n/a
Drug Manufacturers Median			88.06M	n/a	n/a	n/a	n/a
ADVENTRX Pharmaceuticals Inc.	ANX	0.20	52.73M	n/a	n/a	171.49	n/a

Source: Thomson Financial

http://www.thomson.com/financial/financial.jsp

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	0
Sales	n/a	0
Net Shares Purchased (Sold)	n/a	0
Total Insider Shares Held	4.43%	n/a
% Net Shares Purchased (Sold)	0.0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(993,763)
% Change in Institutional Shares Held	(16.0%)

http://www.thomson.com/financial/financial.jsp

Source: Yahoo Finance

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