SAN FRANCISCO, CA--(Marketwire - Jul 12, 2012) - Vista Partners announced today that it has updated coverage on ADVENTRX Pharmaceuticals, Inc. (NYSE MKT: ANX) (NYSE Amex: ANX) ("The Company," "ADVENTRX" or "ANX"); and maintains its twelve month target price of $3.50. Ross Silver, Principal Analyst at Vista Partners, stated, "The GlycoMimetics deal with Pfizer in October 2011, for their investigational compound GMI-1070 currently in Phase 2 development for the treatment of vaso-occlusive crisis associated with sickle cell disease, has a potential value of approximately $340M. This deal would seem to provide a benchmark for which to base value of ANX-188, which ADVENTRX has stated will begin a Phase 3 trial before the end of 2012." Mr. Silver continues, "ANX currently trades at a negative enterprise value with its market cap currently being less than its cash balance. In addition, the cash value per share was approximately $0.97 at the end of the first quarter, a discount of approximately 70% from the current share price. This would seem to indicate that the Company is currently being given little to no value for its two Phase 3 clinical candidates which could serve large markets: ANX-188, a novel, purified, rheologic and antithrombotic compound initially being developed as a first-in-class treatment for pediatric patients with sickle cell disease in acute crisis; and ANX-514, a detergent-free reformulation of the blockbuster drug Taxotere."
In conclusion, Mr. Silver states, "ANX and many other biotech companies both private and publicly held, are seemingly attractive targets for investment and acquisition by larger biotech companies due to an aging 'baby boomer' population in the U.S. and around the developed world. The possibility of tens of millions of new patients possibly being added to the healthcare system as a result of 'Obamacare' and the significant appetite of 'big pharma' to replenish their aging pipelines via mergers and acquisitions bodes well for a company like ADVENTRX. Biotechnology performed well in the first half of 2012 and the following four biotechnology-focused ETFs were among the top-10-performing ETFs in the first half of 2012: (1) The First Trust NYSE Arca Biotechnology fund, (2) the Market Vectors Biotech ETF, (3) the iShares Nasdaq Biotechnology Index Fund, and (4) the SPDR S&P Biotech ETF."
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