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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.

Source: Reuters.com, SEC Filings.

Financial Summary

First Quarter Financial Results

ANX’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, ANX effected a 1-for-25 reverse split of its outstanding shares of common stock.

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 earlier this month announced that it has completed the previously announced sale of shares of its Series F convertible preferred stock pursuant to a registered direct offering to institutional investors, representing gross proceeds to ANX of approximately $19.2 million. The Company said it plans to use the net proceeds from the offering to fund activities relating to acquiring and developing additional product candidates, to continue development of its current lead product candidates, and for general corporate purposes.

ANX said approximately $4.2 million of the gross proceeds will be placed in an escrow account, which amounts will be released to make the dividend and other payments described above.

The Company is currently focused on seeking regulatory approval for and commercializing two late-stage product candidates in the United States, ANX-530 (vinorelbine injectable emulsion) and ANX-514 (docetaxel injectable emulsion), which are novel emulsion formulations of currently marketed chemotherapy drugs. ANX said it believes ANX-530 and ANX-514 may improve the safety of and have greater commercial potential than the currently marketed reference products, Navelbine® (vinorelbine tartrate) Injection and Taxotere® (docetaxel) Injection Concentrate, respectively, by:

• Reducing the incidence and severity of adverse effects; and
• Improving their pharmacoeconomics and convenience to healthcare practitioners and patients.

Reformulating existing pharmaceutical products is an increasingly common product lifecycle-management technique. A 2004 report on the U.S. drug market from BCC Inc. projected that reformulations would grow from 62% of the market in 2003 to 79% in 2008. Finding new markets for and ways to modify and improve existing products is often an essential element of pharmaceutical companies’ efforts to innovate and improve treatment outcomes in the context of patent expirations and competitive pressures.

Navelbine and Taxotere are intravenously-injected chemotherapy drugs commonly used to treat solid tumors. The Company believes the current formulations of these drugs have limitations, such as phlebitis, erythema, hypersensitivity reactions and fluid retention that present opportunities for improvement. ANX is developing novel ways to formulate the active ingredient underlying each of these drugs that the Company believes will improve its safety profiles without adversely affecting efficacy. In addition, the Company said it believes its formulations may provide benefits to patients and practitioners that do not manifest themselves in traditional measures of safety or efficacy.

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.

ANX’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below zero, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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