EX-99 3 a4513380ex991.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 OXiGENE Reports Third-Quarter Financial Results; Company to Host Conference Call at 10 a.m. ET Today WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 11, 2003--OXiGENE, Inc. (NASDAQ: OXGN, XSSE: OXGN), a leading developer of biopharmaceutical compounds designed to target aberrant blood vessels within solid tumor cancers and ocular neovascular diseases, today reported financial results for the third quarter ended September 30, 2003. "OXiGENE continues to aggressively advance Combretastatin A4 Prodrug (CA4P) into trials aimed at both niche and large disease indications," said President and Chief Executive Officer Fred Driscoll. "Including the two new clinical studies of our lead anti-tumor compound initiated in the third quarter of 2003, CA4P is now being evaluated in a total of five human trials in cancer and one in ophthalmology." For the third quarter of 2003, OXiGENE reported a net loss of $3.4 million, or $0.24 per share, compared with a net loss of $1.7 million, or $0.14 per share, for the same period of 2002. No revenue was reported in either period. Included in the net loss for the third quarter of 2003 was $273,000 in stock-based compensation expense and $790,000 in one-time charges related to the sublease of the Company's former office in Watertown, Massachusetts. On a cash flow basis, the Company expects to reduce its rent expense by a total of approximately $440,000 over a five-year period as a result of its relocation from Watertown to Waltham. Included in the net loss for the same period in 2002 was $47,000 in stock-based compensation expense. Excluding these non-cash expenses, the pro forma net loss for the third quarter of 2003 was $2.3 million, or $0.16 per share, compared with a pro forma net loss of $1.6 million, or $0.14 per share, for the third quarter of 2002. For the nine months ended September 30, 2003, OXiGENE's net loss was $6.7 million, or $0.53 per share, on licensing revenue of $20,000, compared with a net loss of $8.6 million, or $0.72 per share, and no licensing revenue for the same period of 2002. Included in the net loss for the nine-month period of 2003 was $497,000 in stock-based compensation expense and $993,000 in one-time charges related to the sublease of the Company's former Watertown office. Included in the net loss for the same period in 2002 was $2.3 million in stock-based compensation expense. Excluding these non-cash expenses, the pro forma net loss for the first nine months of 2003 was $5.2 million, or $0.41 per share, compared with a pro forma net loss of $6.2 million, or $0.52 per share, for the first nine months of 2002. OXiGENE's pro forma net loss and pro forma net loss per share for the three and nine months ended September 30, 2003 are not presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The Company believes such information provides an additional measurement of comparison of its financial results for the periods presented and is a more accurate reflection of its historical performance, because the amounts that were excluded in calculating the pro forma measures are expected to be one-time charges only. Within this news release, OXiGENE has included tables that provide a reconciliation of these pro forma measures to comparable measures reported under GAAP. OXiGENE ended the third quarter of 2003 with approximately $20.9 million in cash and marketable securities and restricted cash. OXiGENE anticipates that cash and cash equivalents as of September 30, 2003 should be sufficient to satisfy its projected cash requirements for more than 34 months. Recent Highlights -- At Mount Vernon and Royal Free Hospitals in the United Kingdom, patients with advanced colorectal cancer are being enrolled in a Phase I/II study testing CA4P in combination with the iodine-labeled antibody A5B7. It is the world's first human study of a vascular targeting agent and a monoclonal antibody. The trial is being conducted under the sponsorship of Cancer Research UK, the world's largest volunteer supported cancer research organization. -- CA4P also is the focus of a Phase Ib/II study in patients with newly diagnosed anaplastic thyroid cancer. The trial, in which CA4P will be combined with radiation and the chemotherapy drugs doxorubicin/cisplatin, marks the first time the compound will be studied in cancer patients whose disease has not yet metastasized. The trial is being conducted at the Ireland Cancer Center at University Hospitals of Cleveland. The Ireland Cancer Center is also the site of the current Phase II, single-agent clinical trial of CA4P in patients with advanced anaplastic thyroid carcinoma. Business Outlook "As we approach 2004, we are focused on continuing to aggressively investigate the potential benefit of CA4P as a therapeutic standard of care in cancer and ophthalmology," Driscoll said. "In addition, we are moving forward with the development of our lead pre-clinical compound, OXi4503, which we expect to enter the clinic in 2004. To accomplish these objectives, we are engaging in discussions with potential licensing partners and, at the appropriate time and under the right circumstances, have the ability to raise additional capital through our recently filed $50 million shelf registration." Third-quarter Conference Call Information In conjunction with its third-quarter financial results, OXiGENE will conduct a conference call at 10:00 a.m. today. Mr. Driscoll and Chief Scientific Officer David Chaplin, Ph.D. will moderate the call. Time: 10:00 a.m. ET Date: Tuesday, November 11, 2003 Dial-in numbers: 888-214-7571 (U.S.) 415-537-1888 (international) Webcast: www.oxigene.com A telephone replay of the conference call will be available for 48 hours and can be accessed by dialing 800-633-8284 (U.S.) or 402-977-9140 (international). Please refer to reservation number 21164721. About OXiGENE OXiGENE is the world leader in the development of novel biopharmaceutical compounds called vascular targeting agents (VTAs), which are designed to block the flow of blood that supplies solid cancer tumors and other abnormal vasculature, while leaving healthy cells intact. OXiGENE's lead VTA, Combretastatin A4 Prodrug, has advanced into Phase II and combination clinical trials in cancer patients in the United States and Europe. The investigational compound also is being evaluated in an ophthalmic study in patients with wet age-related macular degeneration. Three other OXiGENE VTAs, OXi4503, OXi6197 and OXi8007, are in pre-clinical development. For more information about OXiGENE, visit www.oxigene.com. Safe Harbor Statement Statements in this news release concerning OXiGENE's business outlook are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: the anticipated reduction in the Company's rent expense by a total of approximately $440,000 over five years on a cash flow basis; the Company's expectation that cash and cash equivalents should be sufficient to satisfy its projected cash requirements for more than 34 months; OXiGENE's plan to continue aggressively investigating the potential benefit of CA4P as a therapeutic standard of care in cancer and ophthalmology; initiation of clinical trials of OXi4503 in 2004; OXiGENE's ability to license its technology or partner with a third party; and the potential of raising additional capital through the Company's $50 million shelf registration. Any or all of the forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions OXiGENE might make or by known or unknown risks and uncertainties, including, but not limited to: the early stage of product development; the ability to secure necessary patents; uncertainties as to the future success of ongoing and planned clinical trials; and the unproven safety and efficacy of products under development. Consequently, no forward-looking statement can be guaranteed, and actual results may vary materially. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements are contained in OXiGENE's reports to the Securities and Exchange Commission, including OXiGENE's 10-Q, 8-K and 10-K reports. However, OXiGENE undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise. OXiGENE, Inc. GAAP Consolidated Statement of Operations (All amounts in thousands US Dollars, except per share amounts) 3 months 3 months 9 months 9 months ended ended ended ended September September September September 30, 30, 30, 30, 2003 2002 2003 2002 (unaudited) (unaudited) Revenues: Licensing revenue $ - $ - $ 20 $ - Total revenues - - 20 - Expenses: Costs relating to licensing revenue - - - - Amortization of license agreement 24 25 69 66 Operating expenses 3,402 1,719 6,767 10,041 Total expenses 3,426 1,744 6,836 10,107 Operating loss (3,426) (1,744) (6,816) (10,107) Gain on sale of Joint Venture - - - 1,325 Other income, net 72 80 140 207 Net loss $(3,354) $(1,664) $(6,676) $(8,575) Net loss per common share: Basic $ (0.24) $ (0.14) $ (0.53) $ (0.72) Diluted $ (0.24) $ (0.14) $ (0.53) $ (0.72) Shares used to compute net loss per share: Basic 14,007 12,016 12,611 11,987 Diluted 14,007 12,016 12,611 11,987 OXiGENE, Inc. Consolidated Balance Sheet (All amounts in thousands US Dollars) September 30, December 31, Assets 2003 2002 Current Assets: (Unaudited) (Audited) Cash $ 3,501 $ 3,752 Available-for-sale marketable securities 17,074 8,078 Other current assets 458 40 Total current assets 21,033 11,870 Net property and equipment 30 487 Other assets 1,217 1,241 Total assets $ 22,280 $ 13,598 Liabilities and stockholders' equity Current Liabilities: Amount payable for license agreement - current $ 309 $ 290 Accrued lease obligation - current 142 - Accrued expenses 1,921 1,717 Accounts payable 933 1,417 Total current liabilities 3,305 3,424 Amount payable under license agreement - non-current - 154 Accrued lease obligation - non-current 446 - Stockholders' equity Common stock 140 127 Additional paid-in capital 98,128 83,465 Accumulated deficit (78,334) (71,654) Notes receivable (1,597) (2,187) Other 192 269 Total stockholders' equity 18,529 10,020 Total liabilities and stockholders' equity $ 22,280 $ 13,598 OXiGENE, Inc. Non-GAAP Consolidated Statement of Operations (All amounts in thousands US Dollars, except per share amounts) Pro forma Reported results 3 months 3 months ended ended September 30, September 30, 2003 adjustments 2003 (unaudited) Revenues: Licensing revenue $ - $ - Total revenues - - Expenses: Costs relating to licensing revenue - - Amortization of license agreement 24 - 24 Operating expenses 3,402 (1,063) 2,339 (1) Total expenses 3,426 (1,063) 2,363 Operating loss (3,426) 1,063 (2,363) Gain on sale of Joint Venture - - - Other income (expense), net 72 - 72 Net loss $(3,354) $ 1,063 $(2,291) Net loss per common share: Basic $ (0.24) $ 0.08 $ (0.16) Diluted $ (0.24) $ 0.08 $ (0.16) Shares used to compute net loss per share: Basic 14,007 14,007 14,007 Diluted 14,007 14,007 14,007 (1) Adjustments exclude stock compensation of $273, accelerated depreciation on leasehold improvements of $177 and rental loss differential of $613 OXiGENE, Inc. Non-GAAP Consolidated Statement of Operations (All amounts in thousands US Dollars, except per share amounts) (Continued) Pro forma Reported results 3 months 3 months ended ended September 30, September 30, 2002 adjustments 2002 (unaudited) Revenues: Licensing revenue $ - $ - Total revenues - - Expenses: Costs relating to licensing revenue - - Amortization of license agreement 25 - 25 Operating expenses 1,719 (47) 1,672 (2) Total expenses 1,744 (47) 1,697 Operating loss (1,744) 47 (1,697) Gain on sale of Joint Venture - - Other income (expense), net 80 - 80 Net loss $(1,664) $ 47 $(1,617) Net loss per common share: Basic $ (0.14) $ 0.00 $ (0.14) Diluted $ (0.14) $ 0.00 $ (0.14) Shares used to compute net loss per share: Basic 12,016 12,016 12,016 Diluted 12,016 12,016 12,016 (2) Adjustments exclude stock compensation of $47 OXiGENE, Inc. Non-GAAP Consolidated Statement of Operations (All amounts in thousands US Dollars, except per share amounts) Pro forma Reported results 9 months 9 months ended ended September 30, September 30, 2003 adjustments 2003 (unaudited) Revenues: Licensing revenue $ 20 20 Total revenues 20 20 Expenses: Costs relating to licensing revenue - - Amortization of license agreement 69 - 69 Operating expenses 6,767 (1,490) 5,277 (3) Total expenses 6,836 (1,490) 5,346 Operating loss (6,816) 1,490 (5,326) Gain on sale of Joint Venture - - - Other income (expense), net 140 - 140 Net loss $(6,676) $ 1,490 $(5,186) Net loss per common share: Basic $ (0.53) $ 0.12 $ (0.41) Diluted $ (0.53) $ 0.12 $ (0.41) Shares used to compute net loss per share: Basic 12,611 12,611 12,611 Diluted 12,611 12,611 12,611 (3) Adjustments exclude stock compensation of $497, accelerated depreciation on leasehold improvements of $380 and rental loss differential of $613 OXiGENE, Inc. Non-GAAP Consolidated Statement of Operations (All amounts in thousands US Dollars, except per share amounts) (Continued) Pro forma Reported results 9 months 9 months ended ended September 30, September 30, 2002 adjustments 2002 (unaudited) Revenues: Licensing revenue $ - - Total revenues - - Expenses: Costs relating to licensing revenue - - Amortization of license agreement 66 - 66 Operating expenses 10,041 (2,341) 7,700 (4) Total expenses 10,107 (2,341) 7,766 Operating loss (10,107) 2,341 (7,766) Gain on sale of Joint Venture 1,325 - 1,325 Other income (expense), net 207 - 207 Net loss $(8,575) $ 2,341 $(6,234) Net loss per common share: Basic $ (0.72) $ 0.20 $ (0.52) Diluted $ (0.72) $ 0.20 $ (0.52) Shares used to compute net loss per share: Basic 11,987 11,987 11,987 Diluted 11,987 11,987 11,987 (4) Adjustments exclude stock compensation of $2,341 CONTACT: Sharon Merrill Associates, Inc. David Calusdian (Investors), 617-542-5300 dcalusdian@investorrelations.com or Scott Solomon (Media), 617-542-5300 ssolomon@investorrelations.com