MEDIA/INVESTORS CONTACT:
Jonathan Fassberg
The Trout Group
(212) 477-9077 x16
CYTOGEN REVISES THIRD QUARTER 2005 FINANCIAL RESULTS
PRINCETON, N.J., (November 14, 2005) -- Cytogen Corporation (Nasdaq: CYTO) today
announced that it has revised its previously reported consolidated financial
results for the third quarter and nine months ended September 30, 2005 to
reflect the recognition of a warrant liability and a decrease in the value of
the warrant liability related to warrants issued by the company in connection
with its sale of common stock in July and August 2005. This has reduced the
company's net loss for the third quarter and nine months ended September 30,
2005 by $703,000.
Cytogen is now reporting a net loss of $7.1 million, or $0.40 per basic and
diluted share, in the third quarter of 2005, compared to a net loss of $7.8
million, or $0.44 per basic and diluted share, which the company had reported on
November 2, 2005. For the nine months ended September 30, 2005, the company's
total net loss was $21.5 million, or $1.31 per basic and diluted share, compared
to $22.2 million, or $1.36 per basic and diluted share, which it had reported on
November 2, 2005. This revision does not affect the 2004 third quarter and
nine-month losses of $5.6 million, or $0.36 per basic and diluted share, and
$14.3 million, or $0.99 per basic and diluted share, respectively.
The decrease in net loss and net loss per basic and diluted share from the
consolidated financial results for the three and nine months ended September 30,
2005 announced on November 2, 2005 was due to the recognition of a warrant
liability and a decrease in the value of the warrant liability related to
warrants issued by the company in July 2005 and August 2005 in connection with
the company's sale of common stock and warrants that provided net proceeds to
Cytogen of approximately $13.9 million. The company has now recorded the
warrants as a liability at their fair value using a Black-Scholes option-pricing
model and will remeasure them at each reporting period until exercised or
expired. Changes in the fair value of the warrants are reported in the
statements of operations as non-operating income or expense. For the three and
nine months ended September 30, 2005, the company reported a gain of $703,000
related to the decrease in the fair value of these warrants from issuance dates.
ABOUT CYTOGEN CORPORATION
- -------------------------
Founded in 1980, Cytogen Corporation of Princeton, NJ is a biopharmaceutical
company that acquires, develops and commercializes innovative molecules
targeting the sites and stages of cancer progression. 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 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 additional capital; 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.
###
CYTOGEN CORPORATION & SUBSIDIARIES
(All amounts in thousands except per share data)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2005 2004 2005 2004
---------- ----------- ---------- ----------
Product Revenue:
QUADRAMET $ 1,991 $ 1,924 $ 6,198 $ 5,394
PROSTASCINT 1,525 1,308 5,348 5,347
Others - - - 1
---------- ----------- ---------- ----------
Total Product Revenue 3,516 3,232 11,546 10,742
License and Contract Revenue 35 29 155 72
---------- ----------- ---------- ----------
Total Revenues 3,551 3,261 11,701 10,814
---------- ----------- ---------- ----------
Operating Expenses:
Cost of Product Revenue 2,386 2,188 7,064 6,983
Selling, General and Administrative 6,740 5,343 20,456 14,148
Research and Development 1,746 608 3,847 1,953
Equity in Loss of Joint Venture 677 805 2,879 2,156
---------- ----------- ---------- ----------
Total Operating Expenses 11,549 8,944 34,246 25,240
---------- ----------- ---------- ----------
Interest Income, Net 174 87 387 164
Decrease in Value of Warrant Liability* 703 - 703 -
---------- ----------- ---------- ----------
Net Loss $ (7,121) $ (5,596) $ (21,455) $ (14,262)
========== =========== ========== ==========
Basic and Diluted Net Loss Per Share $ (0.40) $ (0.36) $ (1.31) $ (0.99)
========== =========== ========== ==========
Weighted Average Common Shares Outstanding 17,857 15,435 16,326 14,386
========== =========== ========== ==========
* Reflects a mark-to-market decrease of $703 on the value of warrant liability
related to warrants issued in July and August 2005.
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
2005 2004
--------------- ---------------
Assets:
Cash, Cash Equivalents and Short-Term Investments $ 23,467 $ 35,825
Accounts Receivable, Net 1,606 1,406
Inventories 4,542 3,623
Property and Equipment, Net 847 787
QUADRAMET License Fee, Net 6,501 7,024
Other Assets 1,893 1,748
------------ ------------
Total Assets $ 38,856 $ 50,413
============ ============
Liabilities and Stockholders' Equity:
Accounts Payable and Accrued Liabilities $ 6,163 $ 7,644
Other Current Liabilities 18 2,692
Warrant Liability 2,832 -
Other Long-Term Liabilities 33 47
Stockholders' Equity 29,810 40,030
------------ ------------
Total Liabilities and Stockholders' Equity $ 38,856 $ 50,413
============ ============