Celsion Corporation Reports Year End 2012 Financial Results and Provides Business Update

   Celsion Corporation Reports Year End 2012 Financial Results and Provides
                               Business Update

Data from the HEAT Study Undergoing Rigorous Analysis; Recent Financing
Ensures a Strong Balance Sheet

Company to Hold Conference Call on Monday, March 18, 2013 at 11:00 a.m. ET

PR Newswire

LAWRENCEVILLE, N.J., March 18, 2013

LAWRENCEVILLE, N.J., March 18, 2013 /PRNewswire/ --Celsion Corporation
(NASDAQ: CLSN), a leading oncology drug development company, today announced
financial results for the year ended December 31, 2012, and provided an update
on its clinical trials of ThermoDox®, Celsion's proprietary heat-activated
liposomal encapsulation of doxorubicin. ThermoDox® is being evaluated in a
Phase III clinical trial for primary liver cancer (the HEAT Study), a Phase II
clinical trial for colorectal liver metastasis and a Phase II clinical trial
for recurrent chest wall breast cancer. Following review by the independent
Data Monitoring Committee (DMC), on January 31, 2013, the Company announced
that ThermoDox® in combination with RFA did not meet the primary endpoint of
the HEAT Study in patients with hepatocellular carcinoma (HCC), also known as
primary liver cancer. Based on its initial findings in the trial data, the
Company will continue following the patients enrolled in the HEAT Study to the
secondary endpoint, overall survival (OS).

The Company is conducting a comprehensive analysis of the data from the HEAT
Study with key principal investigators, data experts and liver cancer
experts. At this time, preliminary analyses of the data indicate that
ThermoDox® shows clinical activity in multiple subgroups of patients.
Development collaborations with Zhejiang Hisun Pharmaceutical Co. Ltd.
(Hisun), Yakult and with multiple partners using HIFU are continuing pending
further analyses of the clinical data from the HEAT Study.

"We are continuing our analysis of the HEAT Study PFS data and sub-group
cohorts in an effort to determine the best course of action with ThermoDox® in
HCC," said Michael H. Tardugno, Celsion's President and Chief Executive
Officer. "Our plans to follow the study population to determine the OS
profile are widely supported by our Lead Principal Investigators and medical
experts. We expect that the strength of our balance sheet will afford us the
opportunity to support our current development programs including the Phase II
clinical evaluation of ThermoDox® in Recurrent Chest Wall Breast Cancer and in
Cancer Metastasis to the Bone. Additionally, we continue to carefully
evaluate strategic options with consideration given to a number of factors,
including investment in, or acquisition of, complementary technologies or
products, partnering opportunities and working capital requirements."

Recent Business Developments

In January 2013, the Company entered into a Technology Development Agreement
with Hisun for ThermoDox® for the greater China territory. Under the terms of
the agreement, Hisun paid Celsion a non-refundable $5 million payment in
support of the ThermoDox® manufacturing development program.

On February 1, 2013, the Company entered into a Controlled Equity Offering
Sales Agreement with Cantor Fitzgerald & Co. pursuant to which Celsion may
offer and sell, from time to time, through Cantor, shares of its common stock
having an aggregate offering price of up to $25 million. During the month of
February 2013, the Company issued shares under the Agreement and received
gross proceeds of approximately $7 million.

On February 22, 2013, the Company entered into a Securities Purchase Agreement
with certain institutional investors, pursuant to which the Company sold, in a
registered offering, an aggregate of 15,000 shares of its Series A 0%
convertible preferred stock and warrants to purchase approximately 6.0 million
shares of its common stock at an exercise price of $1.18 per share, for an
aggregate purchase price of $15 million.

Financial Results

For the year ended December 31, 2012, Celsion reported a net loss of $26.6
million, or $0.76 per share, compared to a net loss of $23.2 million, or $1.11
per share, in 2011. Net cash used in operations was $22.3 million in 2012
compared to $22.7 million in the prior year. Operating expenses dropped to
$22.1 million in 2012 compared to $25.0 million in 2011. In 2012, Celsion
recorded a $4.1 million non-cash charge related to the change in the common
stock warrant liability compared to an $82,000 non-cash benefit in the same
period of last year. In 2011, the Company recognized $2.0 million in
licensing revenue, compared to zero revenue in 2012.

Research and development costs were $4.1 million lower in 2012 compared to the
prior year, primarily due to completion of patient enrollment in the HEAT
Study in the first half of 2012. General and administrative expenses were
$1.2 million higher in 2012 compared to the prior year as a result of
increased professional services and personnel costs to support the company's

The Company ended 2012 with $23.1 million of total cash, investments and
accrued interest on these investments. Subsequent to year-end, the Company
strengthened its balance sheet by raising approximately $27 million in
aggregate gross proceeds through equity offerings, partnering fees and warrant
and option exercises.

Quarterly Conference Call

The Company is hosting a conference call to provide a business update and
discuss the year end 2012 results at 11:00 a.m. Eastern Time Monday, March 18,
2013. To participate in the call, interested parties may dial 1-888-312-3048
(Toll-Free/North America) or 1-719-457-1512 (International/Toll) and ask for
the Celsion Corporation Year-End 2012 Financial Results Conference Call to
register ten minutes before the call is scheduled to begin. The call will also
be broadcast live on the internet at http://www.celsion.com.

The call will be archived for replay on March 18, 2013 at 2:00 p.m. ET and
will remain available until April 1, 2013. The replay can be accessed at
1-877-870-5176 (Toll-Free/North America) or 1-858-384-5517
(International/Toll) using Conference ID: 4075429. An audio replay of the call
will also be available on the Company's website, http://www.celsion.com, for
30 days after 2:00 p.m. ET Monday, March 18, 2013.

About ThermoDox®

ThermoDox® is a proprietary heat-activated liposomal encapsulation of
doxorubicin, an approved and frequently used oncology drug for the treatment
of a wide range of cancers. ThermoDox® is being evaluated in a Phase III
clinical trial for primary liver cancer (the HEAT study), a Phase II clinical
trial for colorectal liver metastasis and a Phase II clinical trial for
recurrent chest wall breast cancer. Localized mild hyperthermia (39.5 - 42
degrees Celsius) created by radiofrequency ablation (RFA) releases the
entrapped doxorubicin from the liposome. This delivery technology enables
high concentrations of doxorubicin to be deposited preferentially in a
targeted tumor. On January 31, 2013, Celsion announced that ThermoDox® in
combination with RFA did not meet the primary endpoint of the HEAT study in
patients with hepatocellular carcinoma, also known as primary liver cancer.
Celsion is conducting additional analyses of the data from the HEAT study to
assess the future strategic value of ThermoDox®.

About Celsion Corporation

Celsion is dedicated to the development and commercialization of innovative
cancer drugs, including tumor-targeting treatments using focused heat energy
in combination with heat-activated liposomal drug technology. Celsion has
research, license or commercialization agreements with leading institutions,
including the National Institutes of Health, Duke University Medical Center,
University of Hong Kong, the University of Pisa, the UCLA Department of
Medicine, the Kyungpook National University Hospital, the Beijing Cancer
Hospital and the University of Oxford. For more information on Celsion, visit
our website: http://www.celsion.com.

Celsion wishes to inform readers that forward-looking statements in this
release are made pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned that such
forward-looking statements involve risks and uncertainties including, without
limitation, unforeseen changes in the course of research and development
activities and in clinical trials by others; termination of the Technology
Development Contract or collaboration between Celsion and HISUN at any time;
possible acquisitions of other technologies, assets or businesses; possible
actions by customers, suppliers, competitors, regulatory authorities; and
other risks detailed from time to time in the Celsion's periodic reports and
prospectuses filed with the Securities and Exchange Commission.

Investor Contact
Jeffrey W. Church
Sr. Vice President – Corporate
Strategy and Investor Relations

Celsion Corporation

Condensed Statements of Operations

(in thousands except per share amounts)
                                                           Year ended

                                                           December 31,
                                                           2012       2011
Licensing revenue                                        $ -        $ 2,000
Operating expenses:
Research and development                                   15,770     19,864
General and administrative                                 6,373      5,155
Total operating expenses                                  22,143     25,019

                                                           (22,143)   (23,019)
Loss from operations
Other income (expense):
(Loss) gain from valuation of common stock warrant         (4,118)    82
Interest, dividends and other income (expense), net        (307)      (286)
Total other income (expense), net                          (4,425)    (204)

                                                         $ (26,568) $ (23,223)
Net Loss
Net loss per common share –                              $ (0.76)   $ (1.11)
 basic and diluted
Weighted average common shares                             34,789     20,918
 outstanding – basic and diluted

Celsion Corporation

Selected Balance Sheet Information

(in thousands)
                                             December 31,   December 31,
ASSETS                                                      2011
Current assets
Cash and cash equivalents                  $ 14,991       $ 20,146
Short term investments                       8,038          10,157
Prepaid expenses and other current assets    620            1,205
Total current assets                         23,649         31,508
Property and equipment                       1,115          783
Other assets
Deposits and other assets                    260            323
Patent license fees, net                     335            35
Total other assets                           595            358
Total assets                               $ 25,359       $ 32,649
Current liabilities
Accounts payable and accrued liabilities   $ 3,595        $ 6,042
Note payable - current portion               1,410          110
Total current liabilities                    5,005          6,152
Common stock warrant liability               4,284          166
Notes payable – noncurrent portion         3,661          72
Other liabilities – noncurrent portion       447            65
Total liabilities                            13,397         6,455
Stockholders' equity
Common stock                                 380            339
Additional paid-in capital                   165,276        153,237
Accumulated other comprehensive loss         (127)          (276)
Accumulated deficit                          (150,877)      (124,222)
                                             14,652         29,078
Less: Treasury stock                         (2,690)        (2,884)
Total stockholders' equity                   11,962         26,194
Total liabilities and stockholders' equity $ 25,359       $ 32,649

SOURCE Celsion Corporation

Website: http://www.celsion.com
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