Adventrx Pharmaceuticals Inc. (AMEX: ANX)

Adventrx Pharmaceuticals engages in the development of proprietary drug candidates for the treatment of cancer. The Company intends to in-license and commercialize two late-stage drug therapy candidates, ANX-530 (vinorelbine emulsion) and ANX-514 (docetaxel emulsion). Both of these product candidates are reformulation of presently approved drug therapies. Founded in 1995, the Company is headquartered in San Diego, California.

Source: Reuters.com, SEC Filings.

Financial Summary

Analyst Consensus

No analyst rates shares of ANX at this time.

Investment Highlights

Overview

Adventrx Pharmaceuticals engages in the development of proprietary drug candidates for the treatment of cancer. The Company intends to in-license and commercialize two late-stage drug therapy candidates, ANX-530 (vinorelbine emulsion) and ANX-514 (docetaxel emulsion). Both of these product candidates are reformulation of presently approved drug therapies.

Market

According to the Cancer Market Outlook report published by Business Insights, the market for cancer therapeutic drugs is expected to reach $40.9 billion by 2012. The leading pharmaceuticals engaged in this sector include Genentech, Johnson & Johnson, Abbott Laboratories, Amgen, and Roche.

Company Drug Candidates

The Company is involved with the development of two revised formulations of presently approved cancer chemotherapeutics. The first drug therapy candidate, known as ANX-530, is a reformulation of vinorelbine, which is used for the treatment of breast cancer and non-small call lung cancer. The Company designed ANX-530 to reduce symptoms of inflammation at the injection site, called phlebitis, a common reaction experienced by patience taking generic versions of vinorelbine. ANX-530 targets the reduction of symptoms of phlebitis without inhibiting the efficacy of vinorelbine.

The second drug therapy candidate, known as ANX-514, is a reformulation of docetaxel–branded under the well-know cancer drug called Taxotere–which is formulated with a detergent frequently known to cause side-effects such as hypersensitivity reactions. ANX-514 is detergent-free, and is expected to sharply reduce or eliminate the need for steroids typically prescribed to patients in pre-treatment plans associated with a Taxotere regiment and the expected side-effects.

Recent Developments

As most enterprises seeking funding during the largest credit crunch since the 1930’s, the Company has transformed to a highly outsourced business model. Most of the development activities is contracted, leaving a minimal number of full-time employees on payroll, as well as adding flexibility to the Company’s operations.

The Company has undergone four financings since June (in June, July and August), of which are expected to get the Company through an important milestone of a Food and Drug Administration (FDA) decision regarding ANX-530 expected sometime in 2010. Management believes the period between the latest financing of early October and the scheduled FDA decision in 2010 lowers the credit risk to the Company and investors.

In total, the amount raised from the four financings is $9.8 million, and will be used to fund operations until a decision from the FDA regarding the Company’s ANX-530 New Drug Application (NDA). According to a Company news release of mid-October, the NDA will be filed by year-end.

Lastly, the Company also said that it has indefinitely postponed a voluntary withdrawal of its common stock listing on the AMEX in favor of a NASDAQ listing. The Company will trade under the symbol “AMX” on the AMEX.

Technical Analysis

Source: http://stockcharts.com/h-sc/ui?s=anx

ANX trades above its 13-day moving average. This bullish sign is less significant, however, because the 13-day moving average is trending downwardly.

The MACD for ANX currently indicates a bullish signal. The MACD is about to cross the signal line, a 9-day moving average, to the upside. The MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower. Overall, the chart is neutral until the price closes above 15 cents decisively.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

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