MEDIA/INVESTORS CONTACT:
Jonathan Fassberg
The Trout Group
(212) 477-9077 x16
CYTOGEN CORPORATION UPDATES 2005 FINANCIAL GUIDANCE
PRINCETON, N.J., (OCTOBER 4, 2005) -- Cytogen Corporation (Nasdaq: CYTO), a
product-driven biopharmaceutical company, today updated its financial guidance
for the year ending December 31, 2005.
During the third quarter of 2005, Cytogen recorded total product sales of $3.5
million, representing an 8% increase over sales in the same period of 2004, but
below the company's internal expectations. Total product sales for the nine
month period ended September 30, 2005 were $11.5 million compared to $10.7
million for the same period in 2004, representing an increase of 7%. Cytogen is
withdrawing previously provided revenue guidance for the year ending December
31, 2005, as the company currently anticipates that actual results will be lower
than its previous guidance of approximately $20 million.
Average gross margin is expected to be within the company's previous guidance of
approximately 40% to 50%. Selling, general and administrative expenses are
expected to be within the company's previous guidance of approximately $25 to
$30 million. Total internal and external joint venture research and development
expenses are expected to be within the company's previous guidance of
approximately $10 to $15 million.
Cytogen believes the fundamentals of its business and clinical development
pipeline remain strong and that revenue growth will require continued efforts to
expand awareness and use of the company's oncology products, the publication of
data from ongoing clinical trials that demonstrate the role of these products in
contemporary oncology settings, and the introduction of new models to improve
patient access to radiopharmaceuticals.
Cytogen will report third quarter financial results on Tuesday, November 8, 2005
before the financial markets open. The announcement will be followed by a
conference call with the investment community at 9:00 a.m. EST.
ABOUT CYTOGEN CORPORATION
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Founded in 1980, Cytogen Corporation of Princeton, NJ is a product-driven
biopharmaceutical company that acquires, develops and commercializes innovative
molecules that can be used to build leading franchises. Cytogen's marketed
products include QUADRAMET(R) (samarium Sm-153 lexidronam injection) and
PROSTASCINT(R) (capromab pendetide) kit for the preparation of Indium In-111
capromab pendetide in the United States. Cytogen also has exclusive United
States marketing rights to COMBIDEX(R) (ferumoxtran-10) for all applications,
and the exclusive right to market and sell ferumoxytol (previously Code 7228)
for oncology applications in the United States. Cytogen's development pipeline
consists of therapeutics targeting prostate-specific membrane antigen (PSMA), a
protein highly expressed on the surface of prostate cancer cells and the
neovasculature of solid tumors. Full prescribing information for the Company's
products is available at www.cytogen.com or by calling 1-800-833-3533. For more
information, please visit the Company's website at www.cytogen.com, which is not
part of this press release.
This press release contains certain "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E
of the Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical facts, included in this press release regarding our
strategy, future
operations, financial position, future revenues, projected costs, prospects,
plans and objectives of management are forward-looking statements. Such
forward-looking statements involve a number of risks and uncertainties and
investors are cautioned not to put any undue reliance on any forward-looking
statement. There are a number of important factors that could cause Cytogen's
results to differ materially from those indicated by such forward-looking
statements. In particular, Cytogen's business is subject to a number of
significant risks, which include, but are not limited to: the risk of obtaining
the necessary regulatory approvals; the risk of whether products result from
development activities; the risk of shifts in the regulatory environment
affecting sales of Cytogen's products such as third-party payor reimbursement
issues; the risk associated with Cytogen's dependence on its partners for
development of certain projects, as well as other factors expressed from time to
time in Cytogen's periodic filings with the Securities and Exchange Commission
(the "SEC"). As a result, this press release should be read in conjunction with
Cytogen's periodic filings with the SEC. The forward-looking statements
contained herein are made only as of the date of this press release, and Cytogen
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
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