San Diego Based Adventrx Is Subject Of Takeover Rumors
From Baystreet Newswire (Canada) (January 6, 2010)
Category: Baystreet Newswire
Date: Wednesday, January 06, 2010
Shares of ADVENTRX (AMEX:ANX) began to bounce off session lows amid news that the company has become the subject of takeover rumors.
Even though ADVENTRX is an early stage oncology company it counts Carl Icahn’s Ichan Capital Management, Renaissance Technologies, UBS AG, the Bank of New York Mellon and Barclay’s Global Investors among its top institutional holders. The company recently submitted a long awaited New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for its product candidate ANX-530 (vinorelbine injectable emulsion).
The company’s focus has been to create improved equivalent Oncology pharmaceutical products. Its lead product candidates, ANX-530 and ANX-514, are emulsion formulations of marketed chemotherapy drugs. Investors had taken shares to new highs in recent sessions before ADVENTRX announced that it had signed agreements to purchase shares of its Series E convertible preferred stock, representing gross proceeds of approximately $19,000,000. It is believed the company plans to use the majority of the proceeds from its latest offering to fund its operations during the FDA review period of the ANX-530 NDA.
ADVENTRX submitted their NDA as a 505(b)(2) application, which relies in part on the FDA’s findings of safety and effectiveness of a reference drug. That maneuever and similar planned ones offers high profits and lower risks for ADVENTRX, but it does threaten to take market share away from several bigger pharmaceutical companies, including GlaxoSmithKline.
Brian M. Culley, Principal Executive Officer of ADVENTRX said last week in a prepared statement: "The ANX-530 NDA submission is a key step in our strategy to create valuable products that improve the performance of currently approved drugs."
Calls to Mr. Culley were not returned, but he is expected to be in attendance at next week’s OneMedForum Finance Conference in San Francisco next week.
M. Deosdade covers emerging small-cap companies
Posted: January 2010