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(23-Jun-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 | $1.82 | Gross marg. | n/a | n/a | n/a | n/a | n/a | n/a |
| 52wk Range: | $13.00-1.77 | Oper. margin | -4862% | -5462% | 12.3% | -n/m | -n/m | n/a |
| Avg Vol (3m): | 571,029 | Net margin | -44200% | -53200% | 20.4% | -n/m | -n/m | n/a |
| Market Cap. | 18.73M | |||||||
| Dil. 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, ANX 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 (23-Jun-2010) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 16.06 | 2.08 | 2.10 | 0.81 |
| Current Ratio (MRQ) | 16.06 | 2.44 | 2.51 | 0.97 |
| Long-Term Debt to Equity(MRQ) | 0.00 | 7.95 | 18.68 | 133.64 |
| Total Debt to Equity (MRQ) | 0.00 | 10.93 | 24.07 | 199.18 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
| Buy | Outperform | Hold | Underperform | Sell | No Opinion |
This is the consensus forecast amongst 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 | 0 | 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 share price to rise to 6.00 in the next year from the last price of 1.82.
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 Jun-10 | 1 | -0.51 | -0.51 | -0.51 | – |
| Quarter Ending Sep-10 | 1 | -0.47 | -0.47 | -0.47 | – |
| Year Ending Dec-10 | 1 | -1.77 | -1.77 | -1.77 | – |
| Year Ending Dec-11 | 1 | -1.30 | -1.30 | -1.30 | – |
Investment Highlights
ANX recently announced that it has granted Theragence Inc. exclusive, worldwide rights under its know-how to develop, make, use and sell 5,10-methylenetetrahydrofolate, also known as ANX-510 or CoFactor. Under the terms of their agreement, Theragence will use commercially reasonably efforts to research, develop and commercialize licensed products. ANX will receive royalties on net sales of licensed products and up to approximately $30 million in commercial milestones based on aggregate gross sales of licensed products in the United States, European Union and Japan.
In October 2007, ANX reported the results of a Phase 2b study in which CoFactor, in combination with 5-fluorouracil, did not demonstrate statistically significant improved safety in the trial’s primary endpoint. In November 2007, ANX discontinued enrolling patients in its Phase 3 clinical trial of CoFactor for the treatment of metastatic colorectal cancer and, in October 2008, ANX discontinued active work on its CoFactor program.
Lead Product Candidates
ANX 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. ANX believes 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. 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, ANX believes its formulations may provide benefits to patients and practitioners that do not manifest themselves in traditional measures of safety or efficacy.
ANX actively seeks new partnership opportunities to expand and improve its development and commercialization efforts. The Company is committed to creating relationships that are beneficial to both the goals of its partners and goals of the Company.
Source: http://www.adventrx.com/
ANX is below its 13-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
| Company Name | Ticker | Price per | Mrkt. Cap. | P/E | P/S | ||
| Jun-23-2010 | symbol | Share, $ | $ Mn | 2010 | 2011 | 2010 | 2011 |
| Telik Inc. | TELK | 0.77 | 41.21M | n/a | n/a | n/a | n/a |
| SuperGen Inc. | SUPG | 2.11 | 127.19M | 23.79 | n/a | 3.23 | n/a |
| Caraco Pharmaceuticals Inc. | CPD | 4.21 | 164.57M | n/a | n/a | 0.74 | n/a |
| Drug Manufacturers Median | 110.99M | n/a | n/a | 1.98 | n/a | ||
| ADVENTRX Pharmaceuticals Inc. | ANX | 1.82 | 18.73M | n/a | n/a | 63.80 | n/a |
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