OXiGENE reports $2.5M net income for second-quarter 2010 vs. $5.3M net loss for same period in 2009

Aug 13 2010

OXiGENE, Inc., (Nasdaq:OXGN), a clinical-stage, biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases, reported financial results for the quarter and six months ended June 30, 2010, and presented an update on recent clinical and corporate progress.

Financial Results

The Company reported consolidated net income for the three month period ended June 30, 2010 of $2.5 million compared to a consolidated net loss of $8.0 million for the same three month period of 2009. The difference in results for the comparable three month periods was due to an increase in the non-cash gain resulting from a change in fair value of warrants and other financial instruments of $7.3 million and a reduction in total costs and expenses of $3.2 million from $8.2 million in the 2009 period to $5.0 million in the 2010 period. Due to the nature of the Company's warrants and other financial instruments, the instruments are recorded as liabilities on the Company's Consolidated Balance Sheets. These instruments are adjusted to their fair market value at each reporting period and the difference is recorded as a non-cash gain or loss in the Company's Consolidated Statements of Operations. The reduction in operating costs and expenses for the comparable three month period is primarily attributable to reductions in a number of clinical program and support costs associated with the restructuring plan implemented in the first quarter of 2010. The operating costs for the 2009 period include costs and expenses of Symphony ViDA, Inc. In July 2009, the Company acquired the equity of Symphony ViDA, Inc. and the entity was merged directly into OXiGENE.

The Company reported a consolidated net loss for the six month period ended June 30, 2010 of $8.5 million compared to a consolidated net loss of $14.5 million for the same six month period of 2009. The difference in results for the comparable six month periods was due to a reduction in total costs and expenses of $3.4 million from $14.8 million in the 2009 period to $11.4 million in the 2010 period and an increase in the non-cash gain resulting from a change in fair value of warrants and other financial instruments of $2.7 million. The reduction in operating costs and expenses for the comparable six month period is primarily attributable reductions in a number of clinical program and support costs associated with the restructuring plan implemented in the first quarter of 2010, with the major impact of this restructuring plan taking effect in the Company's second quarter of 2010. Operating expenses for the six months of 2010 were also impacted by a $0.5 million one-time restructuring charge.

The Company reported net income attributed to OXiGENE for the second quarter of 2010 of $2.5 million, or $0.04 per share, compared with a net loss attributed to OXiGENE of $5.3 million, or $0.11 per share, for the same period in 2009. 

For the six-month period ended June 30, 2010, the net loss attributed to OXiGENE was $8.5 million, or $0.13 per share, compared to a net loss attributed to OXiGENE of $10.8 million, or $0.24 per share, for the comparable period in 2009.

At June 30, 2010, OXiGENE had cash, cash equivalents and restricted cash of approximately $7.3 million compared with approximately $14.1 million at December 31, 2009.

"In the first half of 2010, we executed according to plan and achieved several important  milestones, including the presentation at medical conferences of key data from our studies of ZYBRESTAT for oncology, OXi4503, and topical ZYBRESTAT for ophthalmology," said Peter J. Langecker, M.D., Ph.D., OXiGENE's Chief Executive Officer. "We are pleased to report that we have a growing body of positive data indicating the broad therapeutic potential of our major clinical programs. Our next important milestones will be the presentation of the final results of the Phase 2 FACT trial of ZYBRESTAT plus chemotherapy in patients with anaplastic thyroid cancer (ATC), as well as additional data from our Phase 2 FALCON study in non-small cell lung cancer later this fall. We believe that the product profile of ZYBRESTAT continues to demonstrate its broad potential as a therapeutically and commercially valuable asset and we look forward to working with an industry partner to continue its development."

Corporate Highlights

• In May, the Company announced the publication in Blood of preclinical data showing that its second-generation, dual-action vascular disrupting agent (VDA) OXi4503 demonstrated potent activity in a preclinical model against human FLT- 3 positive acute myeloid leukemia (AML) animal models, in an article titled, "Leukemia regression by vascular disruption and anti-angiogenic therapy" by Gerard Madlambayan, Christopher Cogle and colleagues from the Department of Medicine and Program in Stem Cell Biology at the University of Florida in Gainesville, Florida. The data showed that OXi4503 produced remissions in AML animal models of differing subtypes, and that the potent anti-leukemic effects of OXi4503 resulted from the combination of both vascular disruption and direct cytotoxic effects on leukemia cells. The authors concluded that OXi4503 may represent a promising therapeutic agent, including for patients with high risk AML. Based on this data, the Company is preparing an investigator-initiated Phase 1 clinical study of OXi4503 in patients with AML and myelodysplastic syndrome.
• In June, the Company announced encouraging interim safety and clinical activity data from its ongoing Phase 2 study of ZYBRESTAT plus bevacizumab and chemotherapy in patients with non-small cell lung cancer (NSCLC). The updated analysis showed that meaningful improvements were observed in response rate, progression-free survival and overall survival rates in the study arm (ZYBRESTAT combined with bevacizumab and carboplatin/paclitaxel chemotherapy) as compared with the control arm (bevacizumab and chemotherapy) of the trial. The combination regimen including ZYBRESTAT was observed to be well-tolerated with no significant cumulative toxicities when compared with the control arm of the study. The Company also announced the completion of enrollment of the FALCON study in June.
• In July, the Company presented an update on its ZYBRESTAT ophthalmology program, including preclinical data showing that the Company's topical formulation achieved target retina/choroid concentrations with minimal systemic exposure and demonstrated attractive pharmacokinetic and safety properties and efficacy in destroying abnormal vasculature in a rat choroidal melanoma model. The data were presented at the Glaucoma and Retinopathies 2010 conference by Dai Chaplin, Ph.D., head of research and development and chief scientific officer at OXiGENE.
• Upcoming highlights in the third quarter include the presentation of FACT data at the International Thyroid Congress in September, and at the European Society of Medical Oncology in October. The Company also anticipates the presentation of further FALCON data at the AACR/NCI/EORTC Meeting in November.
• OXiGENE continues to pursue additional forms of capital infusion including public or private financing, strategic partnerships or other arrangements with organizations that have capabilities and/or products that are complementary to the Company's own capabilities and/or products, in order to continue the development of its potential product candidates.