OXiGENE Reports Third Quarter 2012 Financial Results

OXiGENE Reports Third Quarter 2012 Financial Results

SOUTH SAN FRANCISCO, Calif., Nov. 8, 2012 (GLOBE NEWSWIRE) -- OXiGENE, Inc.
(Nasdaq:OXGN), a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer, reported financial results for the quarter and
nine months ending September 30, 2012.

For the three months ended September 30, 2012, the Company reported a net loss
of $2.2 million or $0.13 per share, compared with a net loss of $3.5 million
or $0.25 per share for the three-month period in 2011. The decrease in the net
loss in the three months ended September 30, 2012 as compared to 2011 was
primarily due to a one-time restructuring charge of $1.1 million in 2011.

For the nine months ended September 30, 2012, the Company reported a net loss
of $6.4 million or $0.38 per share, compared with a net loss of $7.3 million
or $0.74 per share for the nine-month period in 2011. The difference in
results for the comparable nine-month periods was due primarily to a reduction
of $1.5 million in research and development expenses in 2012 as compared to
2011 and a one-time restructuring charge of $1.1 million in 2011, partially
offset by a non-cash gain of $2.2 million in 2011 resulting from a change in
the fair value of warrants. Additionally, the 2012 period includes $0.1
million in revenue recognized under the terms of the Company's partnership
agreement with Azanta Danmark A/S, entered into in December 2011, to provide
access to ZYBRESTAT® for the treatment of patients with anaplastic thyroid
cancer (ATC) on a compassionate use basis in Europe and Canada.

The decrease in operating expenses in the 2012 periods was primarily the
result of the conclusion of a number of the Company's clinical projects and
restructuring plans implemented in 2011 in order to focus the Company's
resources on pursuing the advancement of its highest-value clinical assets and
to reduce its cash utilization.

At September 30, 2012, OXiGENE had cash and restricted cash of approximately
$6.3 million, compared with approximately $10.0 million at December 31, 2011.
During the nine months ended September 30, 2012 the Company issued
approximately 2.7 million shares of common stock to Lincoln Park Capital under
the terms of the November 2011 purchase agreement for net proceeds of
approximately $2.1 million and 1.8 million shares of common stock through the
Company's "At the Market" agreement with MLV & Co. LLC for net proceeds of
approximately $1.1 million.

Commented Peter Langecker, M.D., Ph.D., President and Chief Executive Officer:
"During the course of this year, we have worked hard to determine the
strategic path forward for our two lead ZYBRESTAT clinical programs in ovarian
cancer and in ATC. While we believe that both programs are worthy of further
investment, we have concluded that we cannot pursue both ATC and ovarian
cancer with the same vigor and resources. We have grown increasingly
enthusiastic about ZYBRESTAT's therapeutic and commercial potential in
advanced ovarian cancer, as well as our potential to secure funding to advance
this program. Ovarian cancer is a significantly larger market opportunity than
ATC, and we believe it represents a greater partnering and funding
opportunity. There are several promising clinical strategies we intend to
pursue in this indication that we believe could represent near-term inflection
points."

Continued Dr. Langecker: "While we have determined that it is not financially
feasible to pursue the FACT 2 registration trial in ATC, we believe there is
an opportunity to advance a regulatory and commercial strategy that could
enable us to market ZYBRESTAT in Europe for ATC based on existing data. This
strategy could take advantage of the EU's Marketing Authorization process for
ultra-rare indications, and would be relatively inexpensive for us to pursue,
as it would likely not require additional clinical testing. We believe that
this path forward represents an opportunity for ATC patients and for our
company. We remain committed to bringing important new therapeutics to
patients with serious, unmet medical needs. We believe that our pipeline of
vascular disrupting agents represents a valuable arsenal of therapeutically
differentiated and commercially valuable product opportunities."

The Company intends to take what it believes are necessary steps to fund
advancement of its clinical programs, which it believes are in the best
interests of the company and its stockholders. On November 7, 2012, the
Company's board of directors approved the filing of a proxy statement with the
Securities and Exchange Commission for a special meeting of the Company's
stockholders, at which the Company will ask stockholders to approve a reverse
stock split in a range of 1:5 to 1:20. The specific stock split ratio within
that range will be selected by the board in its discretion, if the stock split
is approved by stockholders. The board is taking this step because it believes
that it is necessary and in the best interests of stockholders to maintain the
listing of the common stock on the Nasdaq Capital Market, in order to enhance
the Company's prospects for raising capital. As previously announced, if the
closing bid price of the Company's common stock does not equal or exceed $1.00
per share for a minimum of ten consecutive trading days before December 24,
2012, the Company's common stock could be subject to delisting from the Nasdaq
Capital Market. The Company currently anticipates that the special meeting of
stockholders will be held before the end of 2012.

Conference Call Today

Members of OXiGENE's management team will review third quarter 2012 results
via a webcast and conference call today, November 8, 2012, at 4:30 p.m. EDT
(1:30 p.m. PDT). To listen to a live or an archived version of the audio
webcast, please log on to the Company's website, www.oxigene.com. Under the
"Investors" tab, select the link to "Events and Presentations."

OXiGENE's earnings conference call can also be heard live by dialing (888)
841-3431 in the United States and Canada, and +1 (678) 809-1060 for
international callers, five minutes prior to the beginning of the call.

About OXiGENE

OXiGENE is a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer. The Company's major focus is developing vascular
disrupting agents (VDAs) that selectively disrupt abnormal blood vessels
associated with solid tumor progression. OXiGENE is dedicated to leveraging
its intellectual property and therapeutic development expertise to bring
life-extending and life-enhancing medicines to patients.

The OXiGENE, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4969

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Any or all of the
forward-looking statements in this press release, which include the timing of
advancement, outcomes, and regulatory guidance relative to our clinical
programs, and the achievement of our business and financing objectives may
turn out to be wrong. Forward-looking statements can be affected by inaccurate
assumptions OXiGENE might make or by known or unknown risks and uncertainties,
including, but not limited to, the inherent risks of drug development and
regulatory review, and the availability of additional financing to continue
development of our programs.

Additional information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is contained in
OXiGENE's reports to the Securities and Exchange Commission, including
OXiGENE's reports on Form 10-K, 10-Q and 8-K. However, OXiGENE undertakes no
obligation to publicly update forward-looking statements, whether because of
new information, future events or otherwise. Please refer to our Annual Report
on Form 10-K for the fiscal year ended December 31, 2011.

Additional Information and Where to Find It

This press release contains information relating to a proposed special meeting
of stockholders of OXiGENE, Inc. that will become the subject of a proxy
statement to be filed by OXiGENE with the Securities and Exchange Commission
(the "SEC"). This press release is not a substitute for the proxy statement or
any other document that OXiGENE may file with the SEC or send to its
stockholders in connection with the special meeting. Investors and security
holders are urged to read the proxy statement and all other relevant documents
filed with the SEC or sent to stockholders as they become available because
they will contain important information about the special meeting. All
documents, when filed, will be available free of charge at the SEC's website
(www.sec.gov). You may also obtain these documents by contacting OXiGENE at
650-635-7000 or by email at ir@oxigene.com.

Participants in the Solicitation

OXiGENE and its directors and executive officers will be deemed to be
participants in any solicitation of proxies in connection with the special
meeting. Information about OXiGENE's directors and executive officers is
available in OXiGENE's proxy statement dated April 18, 2012 for its 2012
Annual Meeting of Stockholders. Other information regarding the participants
in the proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in the proxy
statement and other relevant materials to be filed with the SEC regarding the
special meeting when they become available. Investors should read the proxy
statement carefully when it becomes available.

OXiGENE, Inc.                                               
Balance Sheet Data                                          
(Unaudited)                                                 
                                         September 30, 2012 December 31, 2011
                                         (All amounts in 000's)
Assets                                                    
                                                           
Cash and restricted cash                  $6,323           $9,992
Prepaid expenses                          220               582
License agreement                         215               289
Other assets                              109               193
                                                           
Total assets                              $6,867           $11,056
                                                           
                                                           
Liabilities and stockholders' equity                       
                                                           
Accounts payable and accrued liabilities  $1,251           $2,259
Total stockholders' equity               5,616             8,797
                                                           
Total liabilities and stockholders'       $6,867           $11,056
equity

                                                               
OXiGENE, Inc.                                                  
Statement of Operations                                         
Data
(Unaudited)                  Three months ended       Nine months ended
                             September 30,            September 30,
                            2012         2011         2012        2011
                            (All amounts in 000's except per share amounts)
Product revenue              $--        $--        $114      $--
                                                               
Operating Expenses:                                             
                                                               
Research and development     1,015        1,098        2,749       4,280
General and administrative   1,220       1,309       3,751      4,095
Restructuring                4           1,146       15         1,146
                                                               
Total operating expenses     2,239       3,553       6,515      9,521
                                                               
Loss from Operations         (2,239)     (3,553)     (6,401)    (9,521)
                                                               
Change in fair value of      --          40          5          2,219
warrants
Investment income            2           1           10         3
Other (expense) income, net  (10)        (1)         (18)       (9)
                                                               
Net loss                     $(2,247)   $(3,513)   $(6,404)  $(7,308)
                                                               
Basic and diluted net loss   $(0.13)    $(0.25)    $(0.38)   $(0.74)
per common share
Weighted average number of   17,819      13,969      16,675     9,870
common shares outstanding

CONTACT: Investor and Media Contact:
         ir@oxigene.com
         650-635-7000

company logo
 
Press spacebar to pause and continue. Press esc to stop.