OXiGENE reports consolidated net loss of $11.0M for first-quarter 2010

May 12 2010

OXiGENE, Inc. (Nasdaq:OXGN) (Stockholm:OXGN), a clinical-stage, biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases, reported financial results for the quarter ended March 31, 2010, and presented an update on recent clinical and corporate progress.

Financial Results

The Company reported a consolidated net loss for the first quarter of 2010 of $ 11.0 million compared with $6.6 million for the same three month period of 2009. In the three month period ended March 31, 2009, the consolidated net loss of $6.6 million included a loss attributed to the Symphony ViDA non-controlling interest of approximately $1.0 million. The net loss attributed to OXiGENE, Inc. for the first quarter of 2010 was $ 11.0 million, or $0.17 per share, compared with a net loss attributed to OXiGENE, Inc. of $5.6 million, or $0.12 per share, for the same period in 2009.

On a consolidated net loss basis, a decrease in research and development expenses of approximately $0.7 million for the 2010 three month period compared to the same three month period of 2009, was offset by a non-recurring restructuring charge of approximately $0.5 million in the first quarter of 2010 in connection with OXiGENE's efforts to focus its resources on its highest-value clinical assets and reduce its cash utilization and an increase in the fair value of warrants resulting in a non-cash, non-operating loss of approximately $4.6 million in the three month period ended March 31, 2010.

At March 31, 2010, OXiGENE had consolidated cash and cash equivalents of approximately $14.2 million compared with approximately $14.1 million at December 31, 2009.

"In the first quarter, OXiGENE made good progress toward our goals of strengthening our company, focusing clinical resources on our most promising product candidates, reducing cash utilization and extending our cash runway," said Peter J. Langecker, M.D., Ph.D., OXiGENE's Chief Executive Officer. "We look forward with enthusiasm to presenting data on our high-priority clinical programs at the American Society of Clinical Oncology (ASCO) annual meeting, including safety and efficacy data from our Phase 2 trial of ZYBRESTAT™ in non-small cell lung cancer (NSCLC) and data from our Phase 1b trial of OXi4503 in solid tumors. We believe that today OXiGENE has a strong pipeline and a competitive position in the field of vascular disrupting agents in cancer, and we are the only company clinically evaluating a vascular disrupting agent in an ophthalmologic indication. We anticipate multiple value-creating opportunities in 2010, including the potential to establish industry partnerships that will enhance our ability to deliver on the promise of our programs."

Corporate Highlights

• In February, the Company announced the streamlining of its operations in order to focus more closely on advancing its high-priority programs, including the Phase 2 FALCON trial of ZYBRESTAT in patients with non-small cell lung cancer and second-generation OXi4503 program in solid tumors. Enrollment in the FACT trial in anaplastic thyroid cancer (ATC) was discontinued and an event-driven analysis based on 80 patients enrolled to date is anticipated by the end of 2010 or early 2011.
   
• In March, the Company announced its entry into a definitive agreement with certain institutional investors to raise approximately $7.5 million, which includes the potential for additional capital should the warrants issued in conjunction with the deal be exercised. The net proceeds from the offering will be used to fund development of OXiGENE's high-priority oncology programs and to continue its programs in ATC and in ophthalmology.
   
• In April, the Company appointed Tamar Howson and Peter Langecker to OXiGENE's Board of Directors. Ms. Howson brings considerable pharmaceutical business development and licensing expertise to the OXiGENE Board.
   
• Upcoming highlights in the second quarter include the presentation of FALCON data and OXi4503 Phase 1 data at the ASCO annual meeting in June.