Why life has gotten so busy even when I think it shouldn't be to busy? Hopefully things will start slowing down soon (even though it's a wishful thinking on my part!)
Adventrx announced that the FDA
has issued a complete response letter in regard to the company's new drug application submitted for vinorelbine injection emulsion as potential treatment of non-small cell lung cancer. The company has just recently released its second quarter results with a net loss of 4.4 M which was slightly lower than the $5M that it lost in the same period of last year. the company had a total of 42M as of June 30, 2011 (the amount was reduced to 40.7M as of July 31, 2011)
The complete response letter indicated that the present NDA is not yet approvable due to questionable authenticity of the drug products used in the pivotal bioequivalence trial (study 530-01). The FDA requested Adventrx to repeat the bioequivalence trial to address the issue.
The FDA also required the company to submit all information regarding the product quality or CMC matters.
Although the FDA raised the issued about the questionable products used in the trial, the company said that it is unlikely that the mistake was done because Exelbine and the reference products have different physical characterisics in addition to different preparation procedures and package presentations. But the company acknowledged the reason why the FDA raised questions about the authenticity of the tested products which were due to the methods done to select testing and reserve samples in the study as well as the availabilty of testing and reserve samples for inspection.
My note: Adventrx...it makes me wonder whom they hired to conduct this study? If you have seen and talked to any drug monitor, every single pill was accounted for (or at least they said so but I really think they do.. but then it really depends on the clinical site). If the company chose the right and good clinical site to conduct its study, a procedure should be implemented to make things like this no happen. Not only the clinical site is important, the place where the drug is stored and preserved is also important. This will just cost them additional money and hence lose money and confidence in investors. If things can happen once, it can happen again unless changes are made.
I have to side with the FDA on this one. Although physical appearance is hard to mask and it is unlikely that the mistake was made, it is still not a good thing to not have a proper procedure of accounting.
With all the major stock indexes were up and down like a sine curve these days, Adventrx took a 58% decrease in value after the news was announced. This might be the reason why the company reported its current cash holdings as of July 31, 2011 as a way to keep investors' confidence.