Exhibit 99.1
OXiGENE Reports Third-Quarter Financial Results; Company to Host
Conference Call at 10 a.m. ET Today
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 11, 2003--OXiGENE, Inc.
(NASDAQ: OXGN, XSSE: OXGN), a leading developer of biopharmaceutical
compounds designed to target aberrant blood vessels within solid tumor
cancers and ocular neovascular diseases, today reported financial
results for the third quarter ended September 30, 2003.
"OXiGENE continues to aggressively advance Combretastatin A4
Prodrug (CA4P) into trials aimed at both niche and large disease
indications," said President and Chief Executive Officer Fred
Driscoll. "Including the two new clinical studies of our lead
anti-tumor compound initiated in the third quarter of 2003, CA4P is
now being evaluated in a total of five human trials in cancer and one
in ophthalmology."
For the third quarter of 2003, OXiGENE reported a net loss of $3.4
million, or $0.24 per share, compared with a net loss of $1.7 million,
or $0.14 per share, for the same period of 2002. No revenue was
reported in either period. Included in the net loss for the third
quarter of 2003 was $273,000 in stock-based compensation expense and
$790,000 in one-time charges related to the sublease of the Company's
former office in Watertown, Massachusetts. On a cash flow basis, the
Company expects to reduce its rent expense by a total of approximately
$440,000 over a five-year period as a result of its relocation from
Watertown to Waltham. Included in the net loss for the same period in
2002 was $47,000 in stock-based compensation expense. Excluding these
non-cash expenses, the pro forma net loss for the third quarter of
2003 was $2.3 million, or $0.16 per share, compared with a pro forma
net loss of $1.6 million, or $0.14 per share, for the third quarter of
2002.
For the nine months ended September 30, 2003, OXiGENE's net loss
was $6.7 million, or $0.53 per share, on licensing revenue of $20,000,
compared with a net loss of $8.6 million, or $0.72 per share, and no
licensing revenue for the same period of 2002. Included in the net
loss for the nine-month period of 2003 was $497,000 in stock-based
compensation expense and $993,000 in one-time charges related to the
sublease of the Company's former Watertown office. Included in the net
loss for the same period in 2002 was $2.3 million in stock-based
compensation expense. Excluding these non-cash expenses, the pro forma
net loss for the first nine months of 2003 was $5.2 million, or $0.41
per share, compared with a pro forma net loss of $6.2 million, or
$0.52 per share, for the first nine months of 2002.
OXiGENE's pro forma net loss and pro forma net loss per share for
the three and nine months ended September 30, 2003 are not presented
in accordance with U.S. Generally Accepted Accounting Principles
(GAAP). The Company believes such information provides an additional
measurement of comparison of its financial results for the periods
presented and is a more accurate reflection of its historical
performance, because the amounts that were excluded in calculating the
pro forma measures are expected to be one-time charges only. Within
this news release, OXiGENE has included tables that provide a
reconciliation of these pro forma measures to comparable measures
reported under GAAP.
OXiGENE ended the third quarter of 2003 with approximately $20.9
million in cash and marketable securities and restricted cash. OXiGENE
anticipates that cash and cash equivalents as of September 30, 2003
should be sufficient to satisfy its projected cash requirements for
more than 34 months.
Recent Highlights
-- At Mount Vernon and Royal Free Hospitals in the United
Kingdom, patients with advanced colorectal cancer are being
enrolled in a Phase I/II study testing CA4P in combination
with the iodine-labeled antibody A5B7. It is the world's first
human study of a vascular targeting agent and a monoclonal
antibody. The trial is being conducted under the sponsorship
of Cancer Research UK, the world's largest volunteer supported
cancer research organization.
-- CA4P also is the focus of a Phase Ib/II study in patients with
newly diagnosed anaplastic thyroid cancer. The trial, in which
CA4P will be combined with radiation and the chemotherapy
drugs doxorubicin/cisplatin, marks the first time the compound
will be studied in cancer patients whose disease has not yet
metastasized. The trial is being conducted at the Ireland
Cancer Center at University Hospitals of Cleveland. The
Ireland Cancer Center is also the site of the current Phase
II, single-agent clinical trial of CA4P in patients with
advanced anaplastic thyroid carcinoma.
Business Outlook
"As we approach 2004, we are focused on continuing to aggressively
investigate the potential benefit of CA4P as a therapeutic standard of
care in cancer and ophthalmology," Driscoll said. "In addition, we are
moving forward with the development of our lead pre-clinical compound,
OXi4503, which we expect to enter the clinic in 2004. To accomplish
these objectives, we are engaging in discussions with potential
licensing partners and, at the appropriate time and under the right
circumstances, have the ability to raise additional capital through
our recently filed $50 million shelf registration."
Third-quarter Conference Call Information
In conjunction with its third-quarter financial results, OXiGENE
will conduct a conference call at 10:00 a.m. today. Mr. Driscoll and
Chief Scientific Officer David Chaplin, Ph.D. will moderate the call.
Time: 10:00 a.m. ET
Date: Tuesday, November 11, 2003
Dial-in numbers: 888-214-7571 (U.S.)
415-537-1888 (international)
Webcast: www.oxigene.com
A telephone replay of the conference call will be available for 48
hours and can be accessed by dialing 800-633-8284 (U.S.) or
402-977-9140 (international). Please refer to reservation number
21164721.
About OXiGENE
OXiGENE is the world leader in the development of novel
biopharmaceutical compounds called vascular targeting agents (VTAs),
which are designed to block the flow of blood that supplies solid
cancer tumors and other abnormal vasculature, while leaving healthy
cells intact. OXiGENE's lead VTA, Combretastatin A4 Prodrug, has
advanced into Phase II and combination clinical trials in cancer
patients in the United States and Europe. The investigational compound
also is being evaluated in an ophthalmic study in patients with wet
age-related macular degeneration. Three other OXiGENE VTAs, OXi4503,
OXi6197 and OXi8007, are in pre-clinical development. For more
information about OXiGENE, visit www.oxigene.com.
Safe Harbor Statement
Statements in this news release concerning OXiGENE's business
outlook are considered "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include, but are not limited to: the anticipated reduction
in the Company's rent expense by a total of approximately $440,000
over five years on a cash flow basis; the Company's expectation that
cash and cash equivalents should be sufficient to satisfy its
projected cash requirements for more than 34 months; OXiGENE's plan to
continue aggressively investigating the potential benefit of CA4P as a
therapeutic standard of care in cancer and ophthalmology; initiation
of clinical trials of OXi4503 in 2004; OXiGENE's ability to license
its technology or partner with a third party; and the potential of
raising additional capital through the Company's $50 million shelf
registration. Any or all of the forward-looking statements in this
press release may turn out to be wrong. They can be affected by
inaccurate assumptions OXiGENE might make or by known or unknown risks
and uncertainties, including, but not limited to: the early stage of
product development; the ability to secure necessary patents;
uncertainties as to the future success of ongoing and planned clinical
trials; and the unproven safety and efficacy of products under
development. Consequently, no forward-looking statement can be
guaranteed, and actual results may vary materially. Additional
information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements are
contained in OXiGENE's reports to the Securities and Exchange
Commission, including OXiGENE's 10-Q, 8-K and 10-K reports. However,
OXiGENE undertakes no obligation to publicly update forward-looking
statements, whether because of new information, future events or
otherwise.
OXiGENE, Inc.
GAAP Consolidated Statement of Operations
(All amounts in thousands US Dollars, except per share amounts)
3 months 3 months 9 months 9 months
ended ended ended ended
September September September September
30, 30, 30, 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenues:
Licensing revenue $ - $ - $ 20 $ -
Total revenues - - 20 -
Expenses:
Costs relating to
licensing revenue - - - -
Amortization of
license agreement 24 25 69 66
Operating expenses 3,402 1,719 6,767 10,041
Total expenses 3,426 1,744 6,836 10,107
Operating loss (3,426) (1,744) (6,816) (10,107)
Gain on sale of
Joint Venture - - - 1,325
Other income, net 72 80 140 207
Net loss $(3,354) $(1,664) $(6,676) $(8,575)
Net loss per common
share:
Basic $ (0.24) $ (0.14) $ (0.53) $ (0.72)
Diluted $ (0.24) $ (0.14) $ (0.53) $ (0.72)
Shares used to compute
net loss per share:
Basic 14,007 12,016 12,611 11,987
Diluted 14,007 12,016 12,611 11,987
OXiGENE, Inc.
Consolidated Balance Sheet
(All amounts in thousands US Dollars)
September 30, December 31,
Assets 2003 2002
Current Assets: (Unaudited) (Audited)
Cash $ 3,501 $ 3,752
Available-for-sale marketable
securities 17,074 8,078
Other current assets 458 40
Total current assets 21,033 11,870
Net property and equipment 30 487
Other assets 1,217 1,241
Total assets $ 22,280 $ 13,598
Liabilities and stockholders' equity
Current Liabilities:
Amount payable for license agreement -
current $ 309 $ 290
Accrued lease obligation - current 142 -
Accrued expenses 1,921 1,717
Accounts payable 933 1,417
Total current liabilities 3,305 3,424
Amount payable under license agreement
- non-current - 154
Accrued lease obligation - non-current 446 -
Stockholders' equity
Common stock 140 127
Additional paid-in capital 98,128 83,465
Accumulated deficit (78,334) (71,654)
Notes receivable (1,597) (2,187)
Other 192 269
Total stockholders' equity 18,529 10,020
Total liabilities and stockholders' equity $ 22,280 $ 13,598
OXiGENE, Inc.
Non-GAAP Consolidated Statement of Operations
(All amounts in thousands US Dollars, except per share amounts)
Pro forma
Reported results
3 months 3 months
ended ended
September 30, September 30,
2003 adjustments 2003
(unaudited)
Revenues:
Licensing revenue $ - $ -
Total revenues - -
Expenses:
Costs relating to licensing
revenue - -
Amortization of license
agreement 24 - 24
Operating expenses 3,402 (1,063) 2,339 (1)
Total expenses 3,426 (1,063) 2,363
Operating loss (3,426) 1,063 (2,363)
Gain on sale of Joint Venture - - -
Other income (expense), net 72 - 72
Net loss $(3,354) $ 1,063 $(2,291)
Net loss per common share:
Basic $ (0.24) $ 0.08 $ (0.16)
Diluted $ (0.24) $ 0.08 $ (0.16)
Shares used to compute net loss
per share:
Basic 14,007 14,007 14,007
Diluted 14,007 14,007 14,007
(1) Adjustments exclude stock compensation of $273, accelerated
depreciation on leasehold improvements of $177 and rental loss
differential of $613
OXiGENE, Inc.
Non-GAAP Consolidated Statement of Operations
(All amounts in thousands US Dollars, except per share amounts)
(Continued)
Pro forma
Reported results
3 months 3 months
ended ended
September 30, September 30,
2002 adjustments 2002
(unaudited)
Revenues:
Licensing revenue $ - $ -
Total revenues - -
Expenses:
Costs relating to licensing
revenue - -
Amortization of license
agreement 25 - 25
Operating expenses 1,719 (47) 1,672 (2)
Total expenses 1,744 (47) 1,697
Operating loss (1,744) 47 (1,697)
Gain on sale of Joint Venture - -
Other income (expense), net 80 - 80
Net loss $(1,664) $ 47 $(1,617)
Net loss per common share:
Basic $ (0.14) $ 0.00 $ (0.14)
Diluted $ (0.14) $ 0.00 $ (0.14)
Shares used to compute net loss
per share:
Basic 12,016 12,016 12,016
Diluted 12,016 12,016 12,016
(2) Adjustments exclude stock compensation of $47
OXiGENE, Inc.
Non-GAAP Consolidated Statement of Operations
(All amounts in thousands US Dollars, except per share amounts)
Pro forma
Reported results
9 months 9 months
ended ended
September 30, September 30,
2003 adjustments 2003
(unaudited)
Revenues:
Licensing revenue $ 20 20
Total revenues 20 20
Expenses:
Costs relating to licensing
revenue - -
Amortization of license
agreement 69 - 69
Operating expenses 6,767 (1,490) 5,277 (3)
Total expenses 6,836 (1,490) 5,346
Operating loss (6,816) 1,490 (5,326)
Gain on sale of Joint Venture - - -
Other income (expense), net 140 - 140
Net loss $(6,676) $ 1,490 $(5,186)
Net loss per common share:
Basic $ (0.53) $ 0.12 $ (0.41)
Diluted $ (0.53) $ 0.12 $ (0.41)
Shares used to compute net loss
per share:
Basic 12,611 12,611 12,611
Diluted 12,611 12,611 12,611
(3) Adjustments exclude stock compensation of $497, accelerated
depreciation on leasehold improvements of $380 and rental loss
differential of $613
OXiGENE, Inc.
Non-GAAP Consolidated Statement of Operations
(All amounts in thousands US Dollars, except per share amounts)
(Continued)
Pro forma
Reported results
9 months 9 months
ended ended
September 30, September 30,
2002 adjustments 2002
(unaudited)
Revenues:
Licensing revenue $ - -
Total revenues - -
Expenses:
Costs relating to licensing
revenue - -
Amortization of license
agreement 66 - 66
Operating expenses 10,041 (2,341) 7,700 (4)
Total expenses 10,107 (2,341) 7,766
Operating loss (10,107) 2,341 (7,766)
Gain on sale of Joint Venture 1,325 - 1,325
Other income (expense), net 207 - 207
Net loss $(8,575) $ 2,341 $(6,234)
Net loss per common share:
Basic $ (0.72) $ 0.20 $ (0.52)
Diluted $ (0.72) $ 0.20 $ (0.52)
Shares used to compute net loss
per share:
Basic 11,987 11,987 11,987
Diluted 11,987 11,987 11,987
(4) Adjustments exclude stock compensation of $2,341
CONTACT: Sharon Merrill Associates, Inc.
David Calusdian (Investors), 617-542-5300
dcalusdian@investorrelations.com
or
Scott Solomon (Media), 617-542-5300
ssolomon@investorrelations.com