ADVENTRX first quarter net loss increases to $4.2M

May 7 2012

ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today reported financial results for the first quarter ended March 31, 2012.

"In the first quarter, we focused our resources on ANX-188, including manufacturing activities related to generating clinical trial material for our planned phase 3 study in patients with sickle cell disease," stated Brian M. Culley, Chief Executive Officer of ADVENTRX.  "Based in part on a recent meeting with the FDA regarding the manufacture of ANX-188, we continue to expect to initiate the phase 3 study later this year."

First Quarter 2012 Operating Results

ADVENTRX's net loss applicable to common stock for the first quarter of 2012 was $4.2 million, or $0.09 per share (basic and diluted), compared to a net loss applicable to common stock of $3.0 million, or $0.13 per share (basic and diluted), for the same period in 2011.

Research and development (R&D) expenses for the first quarter of 2012 were $2.2 million, an increase of $1.6 million, or 262%, compared to $0.6 million for the same period in 2011. The increase was due to a $1.1 million increase in external nonclinical study fees and expenses, a $0.3 million increase in personnel costs, and a $0.2 million increase in external clinical study fees.  The increases in external nonclinical study fees and expenses were primarily related to increased research-related manufacturing expenses of $0.9 million for ANX-188 and $0.5 million for ANX-514, offset by a $0.3 million decrease in research-related manufacturing expenses related to Exelbine™.  The increase in external clinical study fees and expenses was primarily related to increased clinical consulting expenses for ANX-188.

Selling, general and administrative (SG&A) expenses for the first quarter of 2012 were $2.0 million, an increase of $0.4 million, or 30%, compared to $1.6 million for the same period in 2011. The increase was due primarily to an increase of $0.2 million in personnel costs and a $0.2 million increase in share-based compensation expense.

Transaction-related expenses for the first quarter of 2012 were negative $0.1 million compared to positive $0.8 million for the same period in 2011.  Transaction-related expenses for the first quarter of 2012 consisted of negative $0.1 million associated with changes since December 31, 2011 in the fair value of the contingent asset and contingent liability related to the SynthRx acquisition. Transaction-related expenses for the first quarter of 2011 consisted of $0.8 million related to legal, financial and business development advisory fees associated with the evaluation of potential acquisition targets, including SynthRx.

Balance Sheet Highlights

As of March 31, 2012, the Company had cash, cash equivalents and short-term investments totaling $46.0 million. Stockholders' equity amounted to $53.0 million as of March 31, 2012.