OXiGENE Reports Full Year 2012 Financial Results

OXiGENE Reports Full Year 2012 Financial Results

SOUTH SAN FRANCISCO, Calif., March 12, 2013 (GLOBE NEWSWIRE) -- OXiGENE, Inc.
(Nasdaq:OXGN), a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer, reported financial results for the year ended
December 31, 2012.

Financial Results

For the year ended December 31, 2012, the Company reported a net loss of $8.1
million or $5.48 per share, compared with a net loss of $9.7 million or $10.37
per share for fiscal year 2011. The difference in results between the years
was due primarily to a reduction of $1.8 million in research and development
expenses and $0.7 million in general and administrative expenses in 2012
compared to 2011 and a restructuring charge of $1.2 million in 2011. These
reductions in expenses were 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 $156,000 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 period 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 allocate the Company's
resources more effectively as it pursues the advancement of its highest-value
clinical assets.

At December 31, 2012, OXiGENE had cash and restricted cash of approximately
$5.0 million, compared with approximately $10.0 million at December 31, 2011.
During the year ended December 31, 2012 the Company issued approximately
294,000 shares of common stock to Lincoln Park Capital under the terms of the
November 2011 purchase agreement for net proceeds of approximately $2.0
million and 178,000 shares of common stock through the Company's "At the
Market" agreement (ATM) with MLV & Co. LLC for net proceeds of approximately
$1.3 million. Additionally, the Company issued 304,000 shares of common stock
through the ATM agreement for gross proceeds of approximately $1.5 million in
January and February of 2013.

All of the per share and share amounts reported in this press release reflect
the effect of the 1:12 reverse stock split that became effective on December
28, 2012.

Commented Peter Langecker, M.D., Ph.D., OXiGENE President and Chief Executive
Officer: "During 2012, and especially in the last quarter of the year, we made
significant progress in advancing our two key clinical strategies: to pursue
ZYBRESTAT clinical programs in advanced ovarian cancer, and to pursue options
for registration of ZYBRESTAT in the European Union (EU) for anaplastic
thyroid cancer under the "exceptional circumstances" marketing authorization
process.

"We have designed our ovarian development program to capitalize on ZYBRESTAT's
excellent combinability potential with anti-vascular therapies and
chemotherapies and complementary mechanism of action. We believe we have
designed an optimal path forward from a clinical, regulatory and commercial
perspective, which could generate some meaningful near-term data read-outs and
indicate potential routes to registration over the next several years. We are
optimistic that we will be able to secure additional funding and establish
development collaborations to enable us to proceed with this strategy in the
near term.

"The "exceptional circumstance" strategy for ZYBRESTAT in ATC is intended to
take advantage of the EU's Marketing Authorization process for ultra-rare
indications, which provides for conditional and exceptional approval for
medical products for seriously debilitating or life-threatening diseases. We
are in the process of requesting scientific advice from two rapporteur
countries in the EU, which we expect to obtain in the first half of this year.
We would anticipate then pursuing scientific advice from the EMA for ZYBRESTAT
in the EU, and would expect to receive that in the second half of the year. A
potential EMA submission for an EU MAA in ATC could take place in the second
half of 2015. If we are successful in implementing this strategy, we could be
in position to market ZYBRESTAT in the EU on this basis, potentially by 2015
or 2016. This strategy may allow us to capitalize on the significant
investments the company has made in the past in the pursuit of an ATC
indication for our lead product.

"We anticipate many important milestones in 2013 and beyond, including data
read-outs from our ongoing clinical programs, such as the interim analysis
from a Phase 2 trial in ovarian cancer being conducted by the Gynecologic
Oncology Group, and progress in our ATC European strategy. We remain committed
to exploring available opportunities to advance our pipeline of vascular
disrupting agents. We are encouraged by what we believe is high interest in
our programs within the investment community, and a recognition that there is
significant value in our portfolio of therapeutically differentiated product
opportunities. We remain grateful to the medical community for supporting our
programs, and to the patients and families who have participated in our
clinical studies."

Conference Call Today

Members of OXiGENE's management team will review full-year results via a
webcast and conference call today, March 12, 2013, at 4:30 p.m. EDT (1:30 p.m.
PDT).

OXiGENE's earnings and conference call can 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.

To listen to a live or 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".

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, data and regulatory guidance relative to our clinical
programs, including the timing for patient accrual and receipt of top-line
data from the Phase 2 study described in this press release, and 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.

                                                          
OXiGENE, Inc.
Balance Sheet Data
(Unaudited)                            December 31,
                                      2012               2011
                                      (All amounts in 000's)
Assets                                                     
                                                          
Cash and restricted cash             $4,966             $9,992
Prepaid expenses                     135                 582
License agreement                    191                 289
Other assets                         155                 193
                                                          
Total assets                         $5,447             $11,056
                                                          
Liabilities and stockholders' equity                       
                                                          
Accounts payable and accrued          $901               $2,259
liabilities
Total stockholders' equity           4,546               8,797
                                                          
Total liabilities and stockholders'   $5,447             $11,056
equity
                                                          
                                                          
OXiGENE, Inc.
Statement of Operations Data
(Unaudited)                            Years ended December 31,
                                      2012               2011
                                      (All amounts in 000's except per share
                                       amounts)
Product revenue                      $156               $--
                                                          
Operating Expenses:                                      
                                                          
Research and development             3,523                5,291
General and administrative           4,690               5,375
Restructuring                        15                  1,226
                                                          
Total operating expenses             8,228               11,892
                                                          
Loss from Operations                 (8,072)             (11,892)
                                                          
Change in fair value of warrants     6                   2,222
Investment income                    12                  7
Other (expense) income, net          (25)                10
                                                          
Net loss                             $(8,079)           $(9,653)
                                                          
Basic and diluted net loss per common $(5.48)            $(10.37)
share
Weighted average number of common     1,473               931
shares outstanding

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

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