Adventrx has had persistent problems getting the FDA to consider one of its flagship drugs, ANX-530, aka Exelbine. The FDA cast doubt on Adventrx's ability to produce the drug at its intended manufacturing site in a "refuse to file letter" from March 2010. The FDA's response letter of August 2011 cast doubt on the authenticity of ANX's most recent trials. FDA approval for a drug is the single most important factor that makes it commercially viable. I say that for the benefit of amateur investors and analysts who confuse PR with documentation. The company's other main products, ANX-188 and ANX-514, appear to be on track with the FDA.
Getting those last two drugs through a 24-month Phase 3 trial takes money. Adventrx held $32.8M in cash as of Sept. 30, 2011 and had only $3.1M in total liabilities. I'll estimate their monthly burn rate by adding up their four most recent quarterly net losses (sums to $13.172M as of Sept. 30) and dividing by 12 to get about $1.1M. Dividing that into the company's cash reserves (netted against the liabilities will leave them with $29.7 in cash reserves) means the company has enough cash to last 27 months. This is reassuring provided the company does not assume any new debt. It should survive until Phase 3 results are on hand.
The company has had negative net income, negative retained earnings, and negative free cash flow for three years. New drugs are a high risk, high reward opportunity. Adventrx has yet to hit its stride due to problems with ANX-530 but other drugs are in the pipeline.
Full disclosure: No position in ANX at this time.