OccuLogix, Inc.
NASDAQ : RHEO
TSX : RHE

OccuLogix, Inc.

August 04, 2005 07:30 ET

OccuLogix Reports Q2-05 Financial Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2005) - OccuLogix, Inc. (TSX:RHE)(NASDAQ:RHEO) today reported its consolidated financial results for the three months ended June 30, 2005. 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).

For the second quarter of 2005, net revenues were $598,000 compared to $109,000 in the second quarter of 2004. The Q2-05 net loss was $3.2 million, or $0.08 per share, compared to a net loss of $2.5 million, or $0.50 per share, in the 2004 second quarter.

Second Quarter 2005 Highlights

- Gilbert S. Omenn, M.D., Ph.D., and Adrienne L. Graves, Ph.D. were appointed to OccuLogix's Board of Directors. Dr. Omenn is a Professor of Internal Medicine, Human Genetics, and Public Health at the University of Michigan. He is a longtime director of Amgen Inc. (NASDAQ:AMGN) and of Rohm & Haas Company (NYSE:ROH). Dr. Graves is President and CEO of Santen Inc., a wholly owned subsidiary of Japan's Santen Pharmaceutical Co., Ltd. (Tokyo Stock Exchange: 4536). Prior to joining Santen Inc., Dr. Graves spent nine years with Alcon Laboratories, Inc. (NYSE:ACL), where she last served as Director of International Ophthalmology.

- OccuLogix announced that Reinhard Klingel, M.D., Ph.D. of the Apheresis Research Institute, Cologne, Germany, presented updated RHEO™ treatment safety and efficacy data from the reference controlled RheoNet Registry at the Association for Research in Vision and Ophthalmology ("ARVO") Annual Meeting in Fort Lauderdale, Florida. Dr. Klingel's presentation at ARVO held that Rheopheresis™ can be regarded as a safe outpatient treatment for elderly patients with AMD and that the clinical outcomes recorded in the RheoNet Registry analysis have been consistent with other clinical trials.

- OccuLogix appointed John Y. Caloz as the company's Chief Financial Officer and Treasurer, effective June 1, 2005. Mr. Caloz succeeded William (Bill) G. Dumencu who remains with the company as VP, Finance. Mr. Caloz has an accomplished history of providing senior financial leadership in the life sciences sector.

- A peer-reviewed article entitled "Rheopheresis for Age-related Macular Degeneration: Clinical Results and Putative Mechanism of Action" was published in the June 2005 issue (Volume 40, No. 3) of the Canadian Journal of Ophthalmology ("CJO"). The CJO is the official journal of the Canadian Ophthalmological Society.

As of June 30, 2005, the company had cash and cash equivalents of $49.4 million and had accumulated a $4 million inventory of OctoNova pumps and Rheofilters.

Elias Vamvakas, OccuLogix's Chairman and CEO commented, "We continued to make considerable progress on all fronts in the second quarter. The shift in awareness and acceptance of our technology by scientists and clinicians is growing, sales traction with key Canadian service providers continues to build, and we are managing the clinical trial and regulatory processes effectively."

Conference Call and Webcast Information

OccuLogix will hold a conference call to discuss these results today, August 4, at 8:00 a.m. Eastern Time at 800-470-5906 (within the United States and Canada), or 416- 620-2417 (internationally). 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 # 21253166 when prompted.

About OccuLogix, Inc.

OccuLogix is a health care company that brings innovative and evidenced-based medical therapies to market. 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
(expressed in U.S. dollars)
(Unaudited)

Three months ended,
June 2005 June 2004
---------------------------------------------------------------------
Revenues
Sales to related parties $ 14,726 $ 108,880
Sales to unrelated parties 583,115 -
---------------------------------------------------------------------
Total revenues 597,841 108,880
---------------------------------------------------------------------
Cost of goods sold
Cost of goods sold to related parties 10,757 113,932
Cost of goods sold to unrelated parties 368,098 -
Royalty costs 25,000 27,394
---------------------------------------------------------------------
Total cost of goods sold 403,855 141,326
---------------------------------------------------------------------
Gross margin (loss) 193,986 (32,446)
---------------------------------------------------------------------
Operating expenses
General and administrative 2,199,372 1,812,872
Clinical and regulatory 1,309,989 667,086
Sales and marketing 380,061 -
---------------------------------------------------------------------
3,889,422 2,479,958
---------------------------------------------------------------------
Loss from operations (3,695,436) (2,512,404)
---------------------------------------------------------------------
Other income (expenses)
Interest income (expense) 420,980 (3,973)
Other (44,056) (465)
---------------------------------------------------------------------
376,923 (4,438)
---------------------------------------------------------------------
Loss before income taxes (3,318,512) (2,516,842)
Recovery of income taxes 158,792 -
---------------------------------------------------------------------
Net loss for the period $ (3,159,720) $ (2,516,842)
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted average number of shares outstanding
- basic and diluted 41,860,288 5,082,665
---------------------------------------------------------------------
---------------------------------------------------------------------
Basic and diluted net loss per share $ (0.08) $ (0.50)
---------------------------------------------------------------------
---------------------------------------------------------------------


OccuLogix, Inc.

CONSOLIDATED BALANCE SHEETS
(expressed in U.S. dollars)

(Unaudited)
June 30, December 31,
2005 2004
---------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 11,645,229 $ 17,530,552
Short term investments 37,784,513 42,500,000
Amounts receivable 1,202,735 472,156
Due from related parties - 8,226
Inventory 3,954,834 1,086,339
Prepaid expenses 556,327 480,813
Deposit 4,891 8,996
---------------------------------------------------------------------
Total current assets 55,148,529 62,087,082
---------------------------------------------------------------------
Fixed assets, net 422,707 367,589
Patents and trademarks, net 143,396 104,654
Intangible asset, net 24,785,529 25,643,862
Goodwill 213,397,444 213,397,444
---------------------------------------------------------------------
Total assets $ 293,897,605 $ 301,600,631
---------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable $ 377,082 $ 221,063
Accrued liabilities 1,947,631 2,791,291
Deferred revenue and rent inducement 2,865 485,047
Due to related parties 103,386 -
Due to stockholders 243,016 516,756
---------------------------------------------------------------------
Total current liabilities 2,673,980 4,014,157
---------------------------------------------------------------------
Deferred tax liability 9,170,646 9,488,229
---------------------------------------------------------------------
Total liabilities 11,844,626 13,502,386
---------------------------------------------------------------------
Stockholders' equity
Capital stock
Common stock 41,868 41,807
Par value of $0.001 per share;
Authorized: 75,000,000; Issued
and outstanding:
June 30, 2005 - 41,867,318;
December 31, 2004 - 41,806,768
Additional paid-in capital 336,459,318 336,063,557
Accumulated deficit (54,448,207) (48,007,119)
---------------------------------------------------------------------
Total stockholders' equity 282,052,979 288,098,245
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $293,897,605 $301,600,631
---------------------------------------------------------------------
---------------------------------------------------------------------



Contact Information