OXiGENE Reports Second Quarter 2013 Financial Results
SOUTH SAN FRANCISCO, Calif., Aug. 6, 2013 (GLOBE NEWSWIRE) -- OXiGENE, Inc.
(Nasdaq:OXGN), a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer, reported financial results for the quarter ended
June 30, 2013.
Commented Peter Langecker, M.D., Ph.D., OXiGENE Chief Executive Officer: "I am
pleased to report that OXiGENE made strong progress during the second quarter,
including completing an important financing in April, and continued to advance
development of our lead clinical product, ZYBRESTAT®, in both ovarian and
anaplastic thyroid cancer, or ATC, working in close collaboration with outside
research groups and partners. We believe this development strategy represents
the most expeditious route to value creation for our Company, while also
safeguarding our cash reserves and enabling us to operate efficiently and
cost-effectively. We are especially looking forward to seeing the results of
the Phase II trial of ZYBRESTAT® in patients with ovarian cancer, which is
being conducted by the Gynecologic Oncology Group, or GOG, which we anticipate
in the first half of 2014. "
An interim futility analysis of the Phase II trial being conducted by the GOG
was performed in the second quarter of 2013. The original purpose of the
analysis was to consider early study closure to limit patient exposure in the
event that the experimental regimen was deemed futile (i.e., unlikely to be
declared more effective than the reference regimen at the end of the study).
Since the study had completed patient accrual, the analysis was conducted for
possible study termination due primarily to toxicities. It was confirmed that
the trial is going to continue to its pre-specified endpoint, which is based
on progression-free survival.
For the three months ended June 30, 2013, the Company reported a net loss of
$1.7 million or $0.74 per share, compared to a net loss of $2.3 million or
$1.65 per share for the comparable three-month period in 2012. The decrease in
the net loss in 2013 as compared to 2012 was primarily due to a reduction in
research and development expenses of $0.5 million and a reduction in general
and administrative expenses of $0.1 million.
For the six months ended June 30, 2013, the Company reported a net loss of
$3.5 million or $1.70 per share, compared with a net loss of $4.2 million or
$3.10 per share for the six-month period in 2012. The decrease in the net loss
in 2013 as compared to 2012 was primarily due to a reduction in research and
development expenses of $0.4 million and a reduction in general and
administrative expenses of $0.3 million. 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, Canada and other
regions outside the United States.
Operating expenses continued to decrease in the 2013 period, reflecting the
Company's strategies to focus resources on its high-value programs, and to
manage cash resources and minimize costs, when possible, through
collaborations. The Company has advanced its clinical program in ovarian
cancer without incurring significant clinical expenses by working with
collaborators. In addition, the Company redirected its regulatory strategy for
ZYBRESTAT in ATC by utilizing its current data set to pursue a regulatory
route to potential commercialization in Europe. The Company also continued to
support the compassionate use of ZYBRESTAT in ATC in Europe in a program being
conducted by Azanta A/S.
In April 2013, the Company raised $4.2 million in net proceeds by issuing
convertible preferred stock in a private placement to accredited institutional
investors. The preferred stock is convertible into a total of approximately
1.38 million shares of common stock. To date, 1,646 shares of convertible
preferred stock have been converted into 453,546 shares of common stock.
Additionally, two series of warrants potentially exercisable for up to
approximately 2.92 million additional shares of common stock were issued with
the convertible preferred stock. The preferred stock does not have any
dividend rights or any preferences over the Company's common stock, including
preferential liquidation rights.
During the second quarter 2013 the Company issued approximately 99,000 shares
of common stock through the Company's At the Market Agreement with MLV & Co.
LLC for net proceeds of approximately $0.4 million.
At June 30, 2013, OXiGENE had cash and restricted cash of approximately $7.8
million, compared with approximately $5.0 million at December 31, 2012.
All of the per share and share amounts reflect the effect of the 1:12 reverse
stock split that became effective on December 28, 2012.
Conference Call Today
Members of OXiGENE's management team will review second quarter results via a
webcast and conference call today, August 6, 2013, 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.
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 & Presentations."
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. The Company's lead clinical product,
ZYBRESTAT, is in development as a potential treatment for ovarian cancer and
anaplastic thyroid cancer (ATC). OXiGENE is dedicated to leveraging its
intellectual property and therapeutic development expertise to bring
life-extending and life-enhancing medicines to patients.
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 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,
manufacturing 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, 2012.
Balance Sheet Data
June 30, December 31,
(All amounts in 000's)
Cash and restricted cash $7,752 $4,966
Prepaid expenses 370 135
License agreement 142 191
Other assets 41 155
Total assets $8,305 $5,447
Accounts payable and $891 $901
Total stockholders' 7,414 4,546
Total liabilities and $8,305 $5,447
Statement of Operations Data
(Unaudited) Three months ended June Six months ended June 30,
2013 2012 2013 2012
(All amounts in 000's except per share amounts)
Product revenue $-- $-- $-- $114
Research and development 603 1,080 1,349 1,734
General and 1,052 1,199 2,187 2,531
Restructuring -- (2) -- 11
Total operating expenses 1,655 2,277 3,536 4,276
Loss from Operations (1,655) (2,277) (3,536) (4,162)
Change in fair value of -- 4 -- 5
Investment income 1 3 2 8
Other (expense) income, -- 4 -- (8)
Net loss $(1,654) $(2,266) $(3,534) $(4,157)
Basic and diluted net $(0.74) $(1.65) $(1.70) $(3.10)
loss per common share
Weighted average number
of common shares 2,227 1,374 2,082 1,342
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