ADVENTRX Pharmaceuticals Inc. (ANX) Shows Strong Upside Potential
  • Stock Alert ADVENTRX Pharmaceuticals Inc. (ANX)
  • Stock Alert for ADVENTRX Pharmaceuticals Inc. ($ANX)
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    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 is based in San Diego, California.

    Share Statistics (Jul-20-10) FY

    2007

    FY

    2008

    %

    Chg

    Q4 2008 Q4 2009 %

    Chg

    Symbol ANX Revenue, $Mn 0.5M 0.5M 0.0% 0.0M 0.0M 0.0%
    Current price $1.81 Gross marg. n/a n/a n/a n/a n/a n/a
    52wk Range: $13.00-1.50 Oper. Margin -4862% -5462% 12.3% -n/m -n/m n/a
    Avg Vol (3m): 550,673 Net margin -44200% -53200% 20.4% -n/m -n/m n/a
    Market Cap. 25.88M
    Shares Outst. 14.3M EPS, $ -6.25 -7.50 20.0% -2.00 -1.00 50.0%

    Source: Reuters.com, SEC Filings.

    Financial Summary

    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, 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.

    Financial Strength (Jul-20-2010) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 16.06 2.85 2.67 0.78
    Current Ratio (MRQ) 16.06 3.33 3.19 0.94
    Long-Term Debt to Equity(MRQ) 0.00 10.69 23.43 129.24
    Total Debt to Equity (MRQ) 0.00 14.65 30.13 191.71

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among one polled investment analysts. Against the ADVENTRX Pharmaceuticals Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 0 1 0 0 0 0
    4 weeks ago 0 1 0 0 0 0
    2 months ago 0 0 0 0 0 0
    3 months ago 0 0 0 0 0 0
    Last year 0 0 0 0 0 0

    The one analyst offering a 12-month price target expects ANX’s share price to rise to 6.00 in the next year from the last price of 1.81.

    Source: www.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Year Ending Dec-11 1 0.36 0.36 0.36
    EARNINGS (per share)
    Quarter Ending Sep-10 1 -0.47 -0.47 -0.47
    Quarter Ending Dec-10 1 -0.31 -0.31 -0.31
    Year Ending Dec-10 1 -1.77 -1.77 -1.77
    Year Ending Dec-11 1 -1.30 -1.30 -1.30

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

    Investment Highlights

    The Company is currently focused on developing and seeking regulatory approval for two late-stage product candidates, ANX-530 (vinorelbine injectable emulsion), or Exelbine™, and ANX-514 (docetaxel lyophilized emulsion for injection), which are novel emulsion formulations of currently marketed chemotherapy drugs. We believe Exelbine 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. ANX believes the current formulations of these drugs have limitations, such as phlebitis, erythema, hypersensitivity reactions and fluid retention that present opportunities for improvement. The Company is developing novel ways to formulate the active ingredient underlying each of these drugs that it believes will improve their safety profiles without adversely affecting efficacy. In addition, the Company believes its formulations may provide benefits to patients and practitioners that do not manifest themselves in traditional measures of safety or efficacy.

    Recent News

    ANX recently announced the results of stability tests performed on samples of ANX-530 (vinorelbine injectable emulsion), or Exelbine(TM), manufactured at the Company’s intended commercial manufacturing site. The nine-month stability data are on track to support the submission of a New Drug Application (NDA) for Exelbine.

    “These results are consistent with our expectations and what we anticipate from the 12-month data,” said Brian M. Culley, CEO of ADVENTRX. “Once the 12-month data is analyzed, we will prepare and submit the Exelbine NDA, which we expect will take place in the fourth quarter of this year.”

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

    Technical Analysis

    Source: http://stockcharts.com

    ANX is trading above its 13-day moving average. While this is normally considered to be a bullish sign, the moving average is downward sloping, which means that investors have been liquidating shares during this time period and tempers the bullishness of the signal.

    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

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Jul20-2010 symbol Share, $ $ Mn 2010 2011 2010 2011
    Caraco Pharmaceutical Lab. Ltd. CPD 4.72 184.51M n/a n/a 0.76 n/a
    SuperGen Inc. SUPG 1.73 104.28M 19.50 n/a 2.56 n/a
    Telik Inc. TELK 0.73 39.07M n/a n/a n/a n/a
    Drug Manufacturers Median 109.28M n/a n/a 1.66 n/a
    ADVENTRX Pharmaceuticals Inc. ANX 1.81 25.88M n/a n/a 86.73 n/a

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares Transaction
    Purchases 5,000 1
    Sales n/a 0
    Net Shares Purchased (Sold) 5,000 1
    Total Insider Shares Held 1.1M n/a
    % Net Shares Purchased (Sold) 0.5% n/a

    Net Institutional Purchases — Prior Qtr to Latest Qtr
    Shares
    Net Shares Purchased (Sold) (36.952)
    % Change in Institutional Shares Held (21.88%)

    Source: Yahoo Finance

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