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ADVENTRX Pharmaceuticals, Inc. Reports Fourth Quarter and Full Year 2008 Financial Results
Date:3/25/2009

lion increase in expenses related to external research-related manufacturing and regulatory and quality assurance activities related to ANX-530 and ANX-514, a $1.3 million increase in external clinical trial expenses related to ANX-514 and a $0.2 million increase in personnel costs, offset by a $5.4 million decrease in external clinical trial expenses related to CoFactor and ANX-530 and a $0.3 million decrease in non-cash, stock-based compensation expenses. R&D expenses for 2008 included non-cash, stock-based compensation expenses amounting to $0.7 million, compared to $1.0 million for 2007.

SG&A expenses increased by $1.0 million, or 12%, to $9.7 million for 2008, from $8.7 million for 2007. The increase was substantially due to a $0.7 million increase in severance expenses, a $0.4 million increase for consulting expenses related to market research, a $0.3 million increase in personnel expenses and $0.1 million increase in professional services, offset by a $0.5 million decrease in non-cash, stock-based compensation expenses. SG&A expenses for 2008 included non-cash, stock-based compensation expenses amounting to $0.9 million, compared to $1.4 million for 2007.

Revenue of $500,000 in 2008 represents a portion of a settlement payment from Theragenex, LLC. In May 2008, we settled a dispute with Theragenex arising out of its alleged breach of a license agreement and, in accordance with such settlement, Theragenex paid us $0.6 million. We recognized $0.5 million as revenue, and the remainder, $0.1 million, as other income.

Interest income and other income amounted to $0.7 million for 2008, compared to $2.2 million in 2007. The decrease in interest income and other income was primarily attributable to lower interest income based on lower invested balances, offset by $0.1 million received as part of the Theragenex settlement, which was recorded as other income.

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