OXiGENE Reports Fourth Quarter and Year-End 2009 Results

SOUTH SAN FRANCISCO, Calif., Feb. 25, 2010 (GLOBE NEWSWIRE) -- OXiGENE, Inc.
(Nasdaq:OXGN) (Stockholm:OXGN), a clinical-stage, biopharmaceutical company
developing novel therapeutics to treat cancer and eye diseases, reported
financial results for the quarter and year ending December 31, 2009. The
Company also provided an update on recent clinical and corporate progress and
outlook for 2010. 

Financial Results

The Company reported a consolidated net loss for the fourth quarter of 2009 of
$7.5 million, compared with a consolidated net loss of $2.3 million for the
same period in 2008. The consolidated net loss for the quarter ended December
31, 2009 was impacted primarily by an increase in operating expenses of
approximately $2.8 million and a reduction in the non-cash gain attributable to
changes in the fair value of warrants and other financial instruments of
approximately $2.2 million. 

For year ended December 31, 2009, the consolidated net loss was $28.9 million,
compared to a consolidated net loss of $21.9 million for 2008. The consolidated
net loss for the year ended December 31, 2009 was impacted primarily by an
increase in operating expenses of approximately $5.2 million, a reduction in
the non-cash gain attributable to changes in the fair value of warrants and
other financial instruments of approximately $1.2 million and a decrease in
investment income of approximately $0.5 million. 

The increases in operating expenses for the three- and twelve-month periods
ended December 31, 2009 over the same periods in 2008 were significantly
impacted by an increase in the average headcount of our research and
development group to enable the management of several international clinical
studies, costs associated with the attempted merger with VaxGen, Inc. in the
fourth quarter of 2009 and expenses associated with the departure of senior
executives in the 2009 periods. 

The net loss applicable to common stock was $0.12 per share for the three-month
period ended December 31, 2009, compared to a net loss of $0.05 per share for
the same three-month period of 2008. The net loss applicable to common stock
was $0.66 per share for the year ended December 31, 2009, compared to a net
loss of $0.70 per share for 2008. 

In fiscal 2009, OXiGENE recorded the acquisition of the Symphony ViDA variable
interest entity as a capital transaction, and the $10.4 million excess of the
fair market value of the shares of common stock issued by OXiGENE ($15.6
million) over the carrying value of the non-controlling interest at the time of
the acquisition ($5.2 million) is reflected as an increase in the loss
applicable to common stock within the calculation of basic and diluted earnings
per share for the year ended December 31, 2009. 

At December 31, 2009, OXiGENE had cash, cash equivalents, restricted cash and
marketable securities of approximately $14.1 million. This compared with
approximately $33.6 million at December 31, 2008, of which $14.7 million was
held by Symphony ViDA. 

"OXiGENE today is focused on maximizing the potential of our highest priority
clinical programs, streamlining our operations and operating efficiently and
cost-effectively," said Peter Langecker, M.D., Ph.D., OXiGENE's Chief Executive
Officer. "We believe that our ZYBRESTAT clinical program in non-small cell lung
cancer is our most valuable near-term product opportunity, and we are looking
forward to presenting updated safety and efficacy data from this trial at the
American Society for Clinical Oncology meeting in early June. Even though we
have curtailed enrollment in the FACT trial, our ZYBRESTAT clinical program in
anaplastic thyroid cancer is expected to yield important data later this year
or -- because the data analysis is event driven -- early in 2011. The program
remains a valuable asset not as a registration study under a special protocol
assessment, but rather as a potential proof-of-concept study for the antitumor
activity of ZYBRESTAT. Similarly, we see significant future value and
opportunity in our second-generation vascular disrupting agent OXi4503, which
is showing promise in acute myelogenous leukemia models and in solid tumors. We
believe that our ophthalmology program is a monetizeable asset for which we
intend to find an outlicensing partner. In the near term, we anticipate
implementing a plan that is designed to position OXiGENE to realize its goals
for 2010 and advance key programs toward important inflection and decision
points this year." 

Fourth Quarter 2009 and Recent Highlights

Oncology

-- In November, OXiGENE announced interim safety data from the FALCON trial, a
Phase 2 study of ZYBRESTAT plus bevacizumab and chemotherapy in patients with
non-small cell lung cancer (NSCLC). The data presented showed that the
combination appeared to be well-tolerated, with no overlapping toxicities, and
that of the 6 patients to date that have died, 5 were on the control arm of the
study while only one was on the treatment (ZYBRESTAT) arm. 
  
-- In December, OXiGENE announced that studies conducted in mouse xenograft and
orthotopic models of acute myelogenous leukemia (AML) showed that OXi4503, a
second-generation, dual-action vascular disrupting agent (VDA), demonstrated a
higher level of anti-leukemic activity when administered as a single agent or
in combination with bevacizumab, an anti-VEGF antibody, than when bevacizumab
was used alone. The data were presented at the 2009 American Society of
Hematology (ASH) meeting and results showed that OXi4503 alone and in
combination with bevacizumab showed more effectiveness in inducing regression
of leukemic cells in bone marrow than bevacizumab alone or placebo. 

Business Highlights

-- In October, Peter Langecker, M.D., Ph. D., was appointed interim Chief
Executive Officer. The OXiGENE Board of Directors has since appointed Dr.
Langecker as Chief Executive Officer. 

Financial Outlook for 2010

Statements concerning OXiGENE's financial outlook for 2010 are forward-looking
and are based on current expectations. These statements do not include the
potential impact of new business collaborations, equity offerings or other
transactions that may be closed or entered into after February 25, 2010. 

Cash utilized for operations in fiscal 2009 was approximately $28.7 million.
Due to a recently implemented restructuring, OXiGENE expects a reduction in
cash utilized for operations in fiscal 2010 from a quarterly average in the
first two quarters of the year of approximately $7.5 million to a quarterly
average of approximately $4.5 million in the last two quarters of the year. 

Anticipated Milestones for 2010

Oncology

-- The company expects to present efficacy and safety data from the FALCON
study of ZYBRESTAT in patients with NSCLC at the American Society of Clinical
Oncology (ASCO) meeting in June. 
  
-- The company expects to present the final data from the Phase 1 study of
OXi4503 in patients with advanced solid tumors at the ASCO meeting in June. 
  
-- The company anticipates completion of enrollment in the ongoing study of
OXi4503 in patients with hepatic tumor burden, with final data from this study
to be reported by the end of the year. 
  
-- The company anticipates the initiation of a Phase 1 study of OXi4503 in
patients with AML. This investigator-sponsored study will be conducted in the
United States, and we expect it to build upon the exciting preclinical data
presented at 2009 ASH meeting. 

Ophthalmology 

-- The company anticipates the completion of enrollment in the FAVOR study, a
Phase 2 proof-of-mechanism study of ZYBRESTAT, administered intravenously, in
patients with polypoidal choroidal vasculopathy (PCV). Data from this study,
combined with the preclinical work done to date, will be used to further
partnering discussions. 

Conference Call Today

Members of OXiGENE's management team will review fourth quarter and full-year
2009 results via a webcast and conference call today at 4:30 p.m. ET (1:30 p.m.
PST). 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. A
replay will be available starting at 7:30 p.m. ET, (4:30 p.m. PST) on February
25, 2010 and ending at 7:30 p.m. ET (4:30 p.m. PST) on Wednesday, March 10,
2010. To access the replay, please dial (800) 642-1687 if calling from the
United States or Canada, or +1 (706) 645-9291 from international locations.
Please refer to replay pass code 58560383. 

About ZYBRESTAT (fosbretabulin)

ZYBRESTAT is being evaluated in a Phase 2 study of patients with non-small cell
lung cancer and other clinical trials. OXiGENE believes that ZYBRESTAT is
poised to become an important product in a novel class of small-molecule drug
candidates called vascular disrupting agents (VDAs). Through interaction with
vascular endothelial cell cytoskeletal proteins, ZYBRESTAT selectively targets
and collapses tumor vasculature, thereby depriving the tumor of oxygen and
causing death of tumor cells. In clinical trials in solid tumors, ZYBRESTAT has
demonstrated potent and selective activity against tumor vasculature, as well
as clinical activity against ATC, ovarian cancer and various other solid
tumors. 

About OXi4503

OXi4503 (combretastatin A1 di-phosphate / CA1P) is a dual-mechanism vascular
disrupting agent (VDA) that is being developed in clinical trials for the
treatment of solid tumors. Like its structural analog, ZYBRESTAT™
(fosbretabulin / CA4P), OXi4503 has been observed to block and destroy tumor
vasculature, resulting in extensive tumor cell death and necrosis. In addition,
preclinical data indicate that OXi4503 is metabolized by oxidative enzymes
(e.g., tyrosinase and peroxidases), which are elevated in many solid tumors and
tumor white blood cell infiltrates, to an orthoquinone chemical species that
has direct cytotoxic effects on tumor cells. Preclinical studies have shown
that OXi4503 has (i) single-agent activity against a range of xenograft tumor
models; and (ii) synergistic or additive effects when incorporated in various
combination regimens with chemotherapy, molecularly-targeted therapies
(including tumor-angiogenesis inhibitors), and radiation therapy. OXi4503 is
currently being evaluated as a monotherapy in a Phase 1 dose-escalation trial
in patients with advanced solid tumors and in patients with hepatic tumor
burden. 

About OXiGENE

OXiGENE is a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer and eye diseases. The Company's major focus is
developing vascular disrupting agents (VDAs) that selectively disrupt abnormal
blood vessels associated with solid tumor progression and visual impairment.
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 OXiGENE's
anticipated cash utilization, expected initiation, progress, conclusion and
reporting on clinical studies and availability of potential strategic
collaborations 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, timing of reporting
interim and final data from the Phase 2 clinical trial of ZYBRESTAT in NSCLC,
timing of reporting data from the Phase 2/3 clinical trial of ZYBRESTAT in
anaplastic thyroid cancer, the enrollment rate and reporting of final results
of a Phase 1b clinical trial of OXi4503 in patients with hepatic tumors,
initiation of a Phase 1 clinical trial of OXi4503 in acute myeloid leukemia,
timing of reporting final results from the ongoing Cancer Research United
Kingdom sponsored Phase 1 clinical trial of OXi4503 in patients with advanced
solid tumors, enrollment rate and timing of reporting final results from a
Phase 2 clinical trial of ZYBRESTAT for ophthalmology in polypoidal choroidal
vasculopathy, and timing or execution of a potential strategic collaboration on
any product or indication or any other strategic or financing transaction.
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, 2008. 

The entire release, including financial tables, is attached as a PDF file.

CONTACT:  OXiGENE, Inc.
          Investor and Media Contact:
          Michelle Edwards, Investor Relations
          650-635-7006
          medwards@oxigene.com