OXiGENE Reports First Quarter 2008 Results


OXiGENE Reports First Quarter 2008 Results


WALTHAM, Mass., May 5, 2008 (PRIME NEWSWIRE) -- OXiGENE, Inc. (Nasdaq:OXGN)
(XSSE:OXGN), a clinical-stage, biopharmaceutical company developing novel
therapeutics to treat cancer and eye diseases, reported financial results for
the quarter ended March 31, 2008 and presented an update on recent clinical and
corporate progress. 

Financial Results

The Company reported that the net loss for the first quarter of 2008 was $5.4
million, or $0.19 per share, compared with a net loss of $3.9 million, or $0.14
per share, for the same period in 2007. 

The increase in loss is driven primarily by a higher level of clinical
development activities, including the continued enrollment of the ZYBRESTAT(tm)
(fosbretabulin) pivotal registration trial in anaplastic thyroid cancer (ATC)
as well as the management of other ongoing clinical trials and drug development
activities. 

At March 31, 2008, OXiGENE had cash, cash equivalents and marketable securities
of approximately $23.1 million compared with approximately $28.4 million on
December 31, 2007. 

"In the first quarter of 2008, we achieved a milestone in our drug development
programs," commented Richard Chin, OXiGENE's President and CEO. "In the
ZYBRESTAT oncology program, we enrolled the first patient in our randomized and
controlled Phase II trial of ZYBRESTAT, bevacizumab and chemotherapy as a
first-line regimen for non-small cell lung cancer. This study, which we believe
is the first-ever controlled study evaluating the combination of a vascular
disrupting agent and antiangiogenic drug, builds upon the encouraging
soon-to-be-presented data generated in the Phase Ib combination clinical trial
of ZYBRESTAT and bevacizumab." 

Clinical Highlights / Update

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 * In March, the Company reported data from a primate ocular
   penetration study of topical ZYBRESTAT for ophthalmology which
   showed that applying either of two formulations of ZYBRESTAT
   topically to the surface of the eye resulted in concentrations of
   the drug in the target tissues (retina and choroid) that the
   Company believes may be sufficient for therapeutic activity. The
   Company currently anticipates that it will file an IND for the
   topical ZYBRESTAT ophthalmology program by year-end and has opted
   to undertake further preclinical studies to better understand the
   drug's therapeutic index and determine an optimal dosing regimen.

 * Also in March, the Company began dosing patients in a randomized,
   controlled Phase II clinical trial that will evaluate a regimen
   comprising ZYBRESTAT, bevacizumab, and standard chemotherapy
   (carboplatin and paclitaxel) versus bevacizumab and standard
   chemotherapy as first-line treatment for patients with Stage
   IIIB/IV non-small cell lung cancer (NSCLC). The anticipated
   duration of the trial is 24 months, and the Company expects to
   report initial top-line data from this trial in the second half
   of 2009.
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Corporate Highlights

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 * In February, OXiGENE announced that it had established a
   Committed Equity Financing Facility (CEFF) with Kingsbridge
   Capital Limited, which the Company believes has increased its
   financial flexibility. Under the terms of the CEFF, OXiGENE can
   access up to $40 million from Kingsbridge in exchange for
   newly-issued shares of OXiGENE common stock. Subject to certain
   restrictions, OXiGENE, at its discretion, may periodically sell
   and Kingsbridge is obligated to purchase common stock, up to a
   maximum total share amount (approximately 5.7 million total
   shares) or total capital amount ($40 million). OXiGENE may access
   the capital at any time for up to three years after the SEC
   declares effective a Registration Statement on Form S-1 filed by
   the Company on May 2, 2008 to register the securities issued and
   issuable to Kingsbridge under the CEFF.
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Upcoming Milestones / Events

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 * In May, at the 11th International Workshop on the Tumor
   Microenvironment, Hypoxia, Angiogenesis and Vasculature, the
   Company plans to present results from topical-route, ocular
   penetration studies in primates and rabbits. This will be the
   first formal presentation of the previously-announced data from
   these studies.

 * In June, at the annual meeting of the American Society of
   Clinical Oncology (ASCO), the Company plans to present data from
   the recently-completed Phase Ib clinical trial that evaluated the
   combination of ZYBRESTAT and bevacizumab in patients with
   advanced solid tumors. Data from the ongoing Phase I clinical
   trial of OXi4503 in patients with advanced solid tumors will also
   be presented at ASCO.
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Members of OXiGENE's management team will review first quarter results via a
webcast and conference call today at 2:00 p.m. EDT (11:00 a.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 "Investor Center" tab, select the
link to "Presentations & Conference Calls." 

OXiGENE's earnings conference call can also be heard live by dialing (888)
656-7434 in the United States and Canada, and (913) 312-0659 for international
callers, five minutes prior to the beginning of the call. A replay will be
available starting at 5:00 p.m. EDT, (2:00 p.m. PDT) on May 5, 2008 and ending
at 5:00 p.m. EDT (2:00 p.m. PDT) on Monday, May 12, 2008. To access the replay,
please dial (888) 203-1112 if calling from the United States or Canada, or
(719) 457-0820 from international locations. Please refer to replay pass code
1450115. 

About ZYBRESTAT (fosbretabulin)

ZYBRESTAT is currently being evaluated in a pivotal registration study in ATC
under a Special Protocol Assessment agreement with the U.S. Food and Drug
Administration (FDA). OXiGENE believes that ZYBRESTAT is poised to become the
first therapeutic 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 studies 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. In clinical studies in patients with forms of macular degeneration,
intravenously-administered ZYBRESTAT has demonstrated clinical activity, and
the Company is working to develop a convenient and patient-friendly topical 
 formulation of ZYBRESTAT for ophthalmological indications.

About OXi4503

OXi4503 (combretastatin A1 di-phosphate / CA1P) is a dual-mechanism VDA that is
being developed in clinical studies for the treatment of solid and liquid
tumors. Like its structural analog, ZYBRESTAT(tm) (fosbretabulin / CA4P),
OXi4503 has been observed to block and destroy tumor vasculature, resulting in
extensive tumor cell death and necrosis. In addition, preclinical data
indicates 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 I dose-escalation clinical trial in
patients with advanced solid tumors. 

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 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 -enhancing medicines to patients. 

The OXiGENE, Inc. logo is available at
http://www.primenewswire.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 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, enrollment rate for patients in the ZYBRESTAT pivotal trial for
anaplastic thyroid cancer, interim analysis of the same, timing of the IND
filing and Phase I trial initiation for topical ZYBRESTAT, timing of a Phase II
clinical trial of ZYBRESTAT and bevacizumab in NSCLC, timing or execution of a
strategic collaboration on any product or indication, and cash utilization rate
for 2008. 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 Commi 
 ssion, 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, 2007. 

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 OXiGENE, Inc.
 Condensed Balance Sheets
 (All amounts in 000's)
 (Unaudited)

                                               March 31,   December 31,
                                                 2008          2007
                                                -------      -------
 Assets                                                     
                                                            
   Cash, cash equivalents and marketable                    
    securities                                  $23,113      $28,438
   Licensing agreement                              654          679
   Other assets                                   1,013          947
                                                -------      -------
                                                            
   Total assets                                 $24,780      $30,064
                                                =======      =======
                                                            
 Liabilities and stockholders' equity                       
                                                            
   Accounts payable and accrued liabilities     $ 5,067      $ 5,207
   Total stockholders' equity                    19,713       24,857
                                                -------      -------

   Total liabilities and stockholders' equity   $24,780      $30,064
                                                =======      =======

 OXiGENE, Inc.
 Condensed Statements of Operations
 (All amounts in 000's except per share amounts)
 (Unaudited)
                                                 Three months ended
                                               ---------------------
                                                      March 31,
                                               ---------------------
                                                 2008          2007
                                               --------     --------
 Costs and expenses:

   Research and development                    $  3,689     $  2,389
   General and administrative                     2,048        2,124
                                               --------     --------

 Total costs and expenses:                        5,737        4,513

 Operating loss                                  (5,737)      (4,513)
                                               --------     --------

   Investment income                                287          572
   Other (expense) income, net                        5           (7)
                                               --------     --------

  Net loss                                     $ (5,445)    $ (3,948)
                                               ========     ========

  Basic and diluted net loss per 
   common share                                $  (0.19)    $  (0.14)

  Weighted average number of common 
   shares outstanding                            28,070       27,875
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CONTACT:  OXiGENE, Inc.
          Investor and Media Contact:
          Investor Relations
          Michelle Edwards
          415-315-9413
          medwards@oxigene.com