OccuLogix, Inc.

OccuLogix, Inc.

March 07, 2005 16:00 ET

OccuLogix Reports Fourth Quarter and Year End 2004 Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: OCCULOGIX, INC.

NASDAQ SYMBOL: RHEO
TSX SYMBOL: RHE

MARCH 7, 2005 - 16:00 ET

OccuLogix Reports Fourth Quarter and Year End 2004
Financial Results

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - OccuLogix, Inc.
(NASDAQ:RHEO)(TSX:RHE) today reported its consolidated financial results
for the three months and year ended December 31, 2004. All dollar
amounts are expressed in U.S. currency, and results are reported in
accordance with United States generally accepted accounting principles
(U.S. GAAP).

Fourth Quarter 2004 Highlights

- OccuLogix successfully completed an initial public offering of its
common stock.

- The company's pivotal (phase III) trial for the dry form of
age-related macular degeneration (Dry AMD) exceeded its patient
recruitment goal. As of December 31, 2004, the company had enrolled 185
patients for participation in MIRA-1 using its RHEO System to treat Dry
AMD, exceeding its goal of 180 patients.

- OccuLogix filed modules 1, 2 and 3 of its Pre-Market Approval
Application (PMA) with the U.S. Food and Drug Administration (FDA).
These modules contained non-clinical results of bench tests and quality
assurance, and documented manufacturing processes on the components of
the RHEO System.

For the fourth quarter of 2004, net revenues were $780,000 compared to
$30,000 in the fourth quarter of 2003. The Q4-04 net loss was $14.0
million, or $0.99 per share, which included the full amortization of
$10.8 million of stock options issued in late 2003 and unamortized at
September 30, 2004, compared to a net loss of $1.4 million, or $0.32 per
share, in the 2003 fourth quarter.

For the full year ended December 31, 2004, OccuLogix's net revenues were
$970,000, compared with $390,000 for the full year 2003. Net loss for
2004 was $21.8 million, or $2.96 per share, which included the full
amortization of $15.4 million of stock options issued in late 2003 and
unamortized at December 31, 2003, compared with a net loss of $2.5
million, or $0.62 per share, for 2003.

Pro forma net loss per share was $0.33 and $0.52 for the fourth quarter
and full year 2004 respectively. Pro forma net loss per share gives
effect to the 41.8 million common shares that were outstanding following
the company's reorganization and initial public offering in December
2004.

As of December 31, 2004, the company had cash and cash equivalents of
$60.0 million, reflecting proceeds from the company's IPO completed in
December 2004.

Elias Vamvakas, OccuLogix's Chairman and CEO commented, "2004 was a year
of challenges met and milestones achieved for OccuLogix. We are excited
by what 2005 holds for us and anticipate that our first full year as a
public company will be characterized by increased awareness and
acceptance of our technology by eye doctors and their patients,
demonstrable sales traction with key Canadian service providers, and
continued clinical and regulatory progress as we work toward FDA
approval and successful commercialization in the U.S."

Conference Call and Webcast Information

OccuLogix will hold a conference call to discuss these results today,
March 7, at 4:05 p.m. Eastern Time at 1-800-404-8949. The call will also
be broadcast live and archived on the company's website at
www.occulogix.com under the "webcasts" link in the Investor Relations
section. For those wishing to listen to a recording of the call via
telephone, a replay will be made available as soon as possible after the
conclusion of the live call and will remain posted for a period of seven
days. To listen to the recording, simply telephone 416-626-4100 and
enter reservation # 21233186 when prompted.

About OccuLogix, Inc.

OccuLogix is an ophthalmic therapeutic company founded to commercialize
innovative evidence-based treatments for eye diseases, including
age-related macular degeneration. AMD is the leading cause of late onset
visual impairment and legal blindness in people over the age of 50.
OccuLogix's common shares trade on the NASDAQ National Market under the
symbol 'RHEO' and on the Toronto Stock Exchange under the symbol 'RHE'.

Forward Looking Statements

This press release may contain forward-looking statements. These
statements relate to future events and are subject to risks,
uncertainties and assumptions about the company. These statements are
only predictions based on our current expectations and projections about
future events. You should not place undue reliance on these statements.
Actual events or results may differ materially. Many factors may cause
our actual results to differ materially from any forward-looking
statement, including the factors detailed in our filings with the
Securities and Exchange Commission and Canadian regulatory authorities,
including our Registration Statement on Form S-1. We do not undertake to
update any forward-looking statements.



OCCULOGIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share amounts)

Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003

Revenues $ 780 $ 30 $ 969 $ 390
---------------------------------------------------------------------
Cost of Sales
Cost of goods sold 638 24 822 374
Royalty Costs 55 25 135 109
---------------------------------------------------------------------
693 49 957 483

Gross margin (loss) 87 (19) 12 (93)
Operating Expenses
General and
administrative 11,747 884 17,424 1,564
Clinical and
regulatory 1,902 411 3,995 731
Sales and marketing 197 0 220 0
Amortization of
intangibles 106 0 106 0
---------------------------------------------------------------------
13,952 1,295 21,745 2,295

Other income
(expenses) (82) (47) (110) (82)
---------------------------------------------------------------------

Net income (loss)
for the period
before income
taxes (13,947) (1,361) (21,843) (2,470)
Income Tax Benefit 24 0 24

---------------------------------------------------------------------
Net income (loss)
for the period $ (13,923) $ (1,361) $ (21,819) (2,470)
---------------------------------------------------------------------
---------------------------------------------------------------------

Net loss per share $ (0.99) $ (0.32) $ (2.96) (0.62)

Weighted average
number of common
shares outstanding 14,078 4,193 7,370 3,977


OCCULOGIX, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31
-------------------------
2004 2003
$ $
---------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents 60,031 1,237
Due from related parties 8 14
Accounts receivable 472 -
Deferred cost of sales 150 -
Inventory 936 188
Prepaid expenses 481 157
Deposit 9 -
---------------------------------------------------------------------
Total current assets 62,087 1,596
---------------------------------------------------------------------
Fixed assets, net 368 191
Patents and trademarks, net 105 81
Deferred share issue costs - -
Intangible asset, net 25,644 -
Goodwill 213,397 -
---------------------------------------------------------------------
301,601 1,868
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIENCY)
Current
Accounts payable 221 194
Accrued liabilities 2,791 245
Deferred revenue and rent 485 -
Due to stockholders 517 1,044
Convertible debentures
due to stockholders - 2,650
---------------------------------------------------------------------
Total current liabilities 4,014 4,133
---------------------------------------------------------------------
Deferred tax liability 9,488 -
Long-term convertible debentures - -
---------------------------------------------------------------------
Total liabilities 13,502 4,133
---------------------------------------------------------------------

Stockholders' equity (deficiency)
Capital stock
Common stock 42 5
Par value of $0.001 per share;
Authorized: 75,000,000;
Issued and outstanding:
December 31, 2004 - 41,806,768;
December 31, 2003 - 5,032,906
Preferred stock - -
Par value of $0.001 per share;
Authorized: 10,000,000;
Issued and outstanding:
December 31, 2004 and 2003 - nil
Series A convertible preferred stock - 2
Non-cumulative, convertible par value of
$0.001 per share
Authorized: December 31, 2004 - nil;
December 31, 2003 - 2,500,000;
Issued and outstanding:
December 31, 2004 - nil;
December 31, 2003 - 1,767,740
Series B convertible preferred stock - 1
Non-cumulative, convertible par value of
$0.001 per share
Authorized: December 31, 2004 - nil;
December 31, 2003 - 2,000,000;
Issued and outstanding
December 31, 2004, December 31, 2003 -
620,112
Additional paid-in
capital 336,064 23,915
Accumulated deficit (48,007) (26,188)
---------------------------------------------------------------------
Total stockholders'
equity (deficiency) 288,099 (2,265)
---------------------------------------------------------------------
Total liabilities and
stockholders' equity 301,601 1,868
---------------------------------------------------------------------
---------------------------------------------------------------------



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    OccuLogix, Inc.
    Stephen Kilmer
    VP, Corporate Affairs
    (905) 602-0887 ext. 3904
    stephen.kilmer@occulogix.com