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PRESS RELEASES ADVENTRX Announces 2005 Second Quarter Financial Results SAN DIEGO – August 12, 2005 – ADVENTRX Pharmaceuticals, Inc. (Amex: ANX) today announced financial results for the three and six months ended June 30, 2005. ADVENTRX reported a net loss of $3.3 million, or $0.06 per share, for the second quarter of 2005, compared with a net loss of $1.5 million, or $0.03 per share, for the second quarter of 2004. "In the past several months, we have moved significantly closer to our corporate goal of introducing new anticancer and antiviral treatments that improve the performance and safety of existing drugs," said Evan M. Levine, ADVENTRX president and chief executive officer. "With our lead drug candidate CoFactor™, we have reported favorable clinical results that further confirm this drug candidate as a viable replacement for leucovorin to improve 5-fluorouracil (5-FU) effectiveness while lowering toxicity. Additionally, we have initiated a Phase IIb trial and received clearance from the US Food and Drug Administration (FDA) to begin a pivotal Phase III trial with CoFactor in metastatic colorectal cancer patients. Further, our preclinical work with Thiovir™ indicates that this orally administered, broad spectrum antiviral drug candidate shows potential promise as a more convenient, less toxic alternative to foscarnet for the treatment of opportunistic infections in HIV patients. "With the completion of our $20 million financing, we are well situated financially to move forward with our aggressive clinical development plans with CoFactor and further capitalize on our drug development pipeline opportunities," added Mr. Levine. Second Quarter and First Half of 2005 Financial Review Research and development expenses for the second quarter of 2005 were $2.2 million, versus $773,000 for the second quarter of 2004. The increase for the 2005 second quarter was related primarily to expenses associated with the Company's clinical trials with CoFactor. General and administrative expenses for the 2005 second quarter were $1.1 million, compared with $746,000 for the same period in 2004. This increase was due primarily to the hiring of additional personnel in the finance and marketing, and business development departments; increased directors and officers insurance premiums; increased legal fees; and increased expenses associated with business development activities. For the six months ended June 30, 2005, net loss was $6.2 million, or $0.11 per share, compared with a net loss of $2.2 million, or $0.05 per share, for the same period in 2004. For the first six months of 2005, research and development expenses were $3.9 million, compared with $1.1 million first six months of 2004. General and administrative expenses for first half of 2005 were $2.3 million, compared with $1.2 million for the same period in 2004. The Company reported that it expects research and development expenses to significantly increase from levels reported in the 2005 second quarter as it ramps up for a pivotal Phase III CoFactor clinical trial and continues patient enrollment in its Phase IIb CoFactor clinical trial. The timing of the increase in research and development expenses is directly related to the timing of the launch of the Phase III trial and the amount of increase will be directly related to the success and speed in patient enrollment in these trials. The Company also expects that general and administrative expenses will increase measurably during the remainder of 2005 as it prepares for compliance with Section 404 of the Sarbanes-Oxley Act. ADVENTRX reported cash and cash equivalents of approximately $8.1 million as of June 30, 2005, compared with $13.0 million as of December 31, 2004. In July, the Company announced the completion of a $20 million private placement of the Company's common stock and warrants. Funds from this transaction will be reflected on the Company's balance sheet in the third quarter ending September 30, 2005. About ADVENTRX ADVENTRX Pharmaceuticals is a biopharmaceutical research and development company focused on introducing new technologies for anticancer and antiviral treatments that improve the performance and safety of existing drugs, by addressing significant problems such as drug metabolism, toxicity, bioavailability and resistance. The Company's lead compound, CoFactor, is a biomodulator of 5-FU, a widely used cancer chemotherapy. CoFactor met the primary endpoint for response and secondary endpoint for safety in an ongoing Phase II clinical trial. CoFactor is currently being tested with 5-FU in this US-based Phase II clinical trial and an EU-based Phase IIb clinical trial as a first line treatment of metastatic colorectal cancer. In addition, CoFactor has received clearance under a special protocol assessment from the US FDA to begin a Phase III pivotal clinical trial for metastatic colorectal cancer. More information can be found on the Company's Web site at www.adventrx.com. Forward Looking Statement This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are made based on management's current expectations and beliefs. Actual results may vary from those currently anticipated based upon a number of factors, including uncertainties inherent in the drug development process, the timing and success of clinical trials, the validity of research results, and the receipt of necessary approvals from the FDA and other regulatory agencies. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's last quarterly report on Form 10-Q, as well as other reports that the Company files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to release publicly any revisions, which may be made to reflect events or circumstances after the date hereof.
Contact:
ADVENTRX Pharmaceuticals Andrea Lynn 858-552-0866
Investor Contact:
Lippert Heilshorn & Associates Jody Cain (jcain@lhai.com) Brandi Floberg (bfloberg@lhai.com) 310-691-7100 |
