OXiGENE Reports Third-Quarter Financial Results; Company to Host Conference Call at 10 a.m. ET Today.Business Editors/Health/Medical Writers WALTHAM Waltham (wôl`thăm, –thəm), city (1990 pop. 57,878), Middlesex co., E Mass., a suburb of Boston, on the Charles River; settled c.1634, set off from Watertown 1738, inc. as a city 1884. , Mass.--(BUSINESS WIRE)--Nov. 11, 2003 OXiGENE, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : OXGN, XSSE: OXGN), a leading developer of biopharmaceutical compounds designed to target aberrant aberrant /ab·er·rant/ (ah-ber´ant) (ab´ur-ant) wandering or deviating from the usual or normal course. ab·er·rant adj. 1. blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. within solid tumor tumor: see neoplasm. cancers and ocular ocular /oc·u·lar/ (ok´u-lar) 1. of, pertaining to, or affecting the eye. 2. eyepiece. oc·u·lar adj. 1. Of or relating to the eye or the sense of sight. neovascular diseases, today reported financial results for the third quarter ended September September: see month. 30, 2003. "OXiGENE continues to aggressively advance Combretastatin The combretasatins are a class of natural stilbenoid phenols. A variety of different natural combretastatin molecules are present in the bark of Combretum caffrum, commonly known as South African Bush Willow. A4 Prodrug prodrug /pro·drug/ (-drug) a compound that, on administration, must undergo chemical conversion by metabolic processes before becoming an active pharmacological agent; a precursor of a drug. (CA4P) into trials aimed at both niche and large disease indications," said President and Chief Executive Officer Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. Driscoll Driscoll is one derivation of the Irish surname "O'Driscoll". It originates from Cork in the Republic of Ireland. Most O'Driscolls and Driscolls live in Ireland, with many more living in the United States, Canada and Australia. . "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 ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for ." 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 sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. of the Company's former office in Watertown, Massachusetts The Town of Watertown is a city[1] in Middlesex County, Massachusetts, United States. The population was 32,986 at the 2000 census. History Watertown, first known as Saltonstall Plantation, was one of the earliest of the Massachusetts Bay settlements. . 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 RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a 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 Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) , the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase 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 Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See 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 Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has 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 Mount Vernon, estate, United States Mount Vernon, NE Va., overlooking the Potomac River near Alexandria, S of Washington, D.C.; home of George Washington from 1747 until his death in 1799. and Royal Free Hospitals in the United Kingdom, patients with advanced colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. 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 vascular /vas·cu·lar/ (vas´ku-ler) 1. pertaining to vessels, particularly blood vessels. 2. indicative of a copious blood supply. vas·cu·lar adj. targeting agent and a monoclonal monoclonal /mono·clo·nal/ (-klon´al) 1. derived from a single cell. 2. pertaining to a single clone. mon·o·clo·nal n. 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 an·a·plas·tic adj. 1. Relating to the surgical restoration of a lost or absent part. 2. Of, relating to, or characterized by cells that have become less differentiated. anaplastic 1. thyroid cancer Thyroid Cancer Definition Thyroid cancer is a disease in which the cells of the thyroid gland become abnormal, grow uncontrollably, and form a mass of cells called a tumor. . The trial, in which CA4P will be combined with radiation and the chemotherapy chemotherapy (kē'mōthĕr`əpē), treatment of disease with chemicals or drugs. One chemotherapeutic approach is the development of selectively toxic substances, i.e. 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 University Hospitals is a major not-for-profit medical center in Cleveland, Ohio, United States. With 150 locations throughout northeast Ohio, it encompasses a network of hospitals, outpatient centers and primary care physicians. . 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 thyroid /thy·roid/ (thi´roid) 1. the thyroid gland; see under gland. 2. pertaining to the thyroid gland. 3. scutiform. 4. carcinoma carcinoma: see neoplasm. . 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , 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 vasculature /vas·cu·la·ture/ (vas´ku-lah-chur) 1. circulatory system. 2. any part of the circulatory system. vas·cu·la·ture n. , while leaving healthy cells intact. OXiGENE's lead VTA VTA Valley Transportation Authority (San Jose, California) VTA Ventral Tegmental Area VTA Vacuum Triode Amplifier VTA VFR Terminal Area VTA Martha's Vineyard Transit Authority (Massachusetts) , Combretastatin A4 Prodrug, has advanced into Phase II and combination clinical trials in cancer patients in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe. The investigational compound also is being evaluated in an ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. study in patients with wet age-related macular degeneration Age-related macular degeneration (ARMD) Degeneration of the macula (the central part of the retina where the rods and cones are most dense) that leads to loss of central vision in people over 60. . Three other OXiGENE VTAs, OXi4503, OXi6197 and OXi8007, are in pre-clinical development Pre-clinical development is a stage in the development of a new drug that begins before clinical trials (testing in humans) can begin, and during which important safety and pharmacology data is collected. . For more information about OXiGENE, visit www.oxigene.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Statements in this news release concerning OXiGENE's business outlook are considered "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy 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
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