Contact: Richard W. Krawiec, Ph.D.,
Vice President, Investor Relations, Corporate Communications
Cytogen Corporation
(609) 750-8289
CYTOGEN ANNOUNCES $70 MILLION EQUITY FINANCING FACILITY
PRINCETON, N.J. - October 10, 2000 - Cytogen Corporation (Nasdaq: CYTO)
announced today that it has entered into an equity financing facility from Acqua
Wellington North American Equities Fund, Ltd. ("Aqua Wellington") for up to $70
million. Over the next 20 months, Cytogen may, at its discretion, sell
additional shares of its common stock to Acqua Wellington pursuant to this
financing facility at a small discount to market to be determined before each
sale. This financing facility is not subject to any minimum takedown
requirements, nor did the Company pay any fees or other compensation in
connection with this transaction. Recently, Cytogen also received $6 million in
net proceeds from an equity placement of 902,601 shares of registered common
stock with Acqua Wellington. Cytogen plans to use the proceeds of this
transaction to accelerate its proteomic and drug development programs as well as
for general corporate purposes.
"This financing facility will give Cytogen the ability to access capital as
needed to accelerate development of our proteomics program and to continue our
focus on strategies that will enhance shareholder value," said Lawrence R.
Hoffman, Cytogen's Vice President and Chief Financial Officer. "With increased
financial resources, including the anticipated sale of tax benefits this year
through the State of New Jersey, Cytogen will be in a stronger position to move
its products through development, to acquire or to in-license additional
products that complement our business objectives in proteomics and prostate
cancer, and to pursue additional strategic partnerships."
Acqua Wellington Asset Management, LLC acts as the advisor to the Acqua
Wellington Family of Funds, which is targeted at investment opportunities among
mid-cap and small-cap publicly traded companies in domestic and global markets.
Their primary focus is in the technology and life science sectors.
Cytogen Corporation is a biopharmaceutical company in Princeton, NJ, whose
mission is setting new standards in cancer care. Its two principal lines of
business, proteomics and oncology, are built upon its expertise in antibodies
and molecular recognition and are directed principally to development of novel
products for the diagnosis, imaging, staging and treatment of prostate cancer
and a proteomics-driven drug discovery platform. The Company's cancer management
franchise currently comprises three FDA-approved products: ProstaScint(R), used
to image the extent and spread of prostate cancer;
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OncoScint CR/OV(R), a diagnostic imaging agent for colorectal and ovarian
cancer; and Quadramet(R), for the relief of cancer-related bone pain. The
Company has established a pipeline of product candidates based on its
proprietary antibody and prostate specific membrane antigen, or PSMA,
technologies, and holds worldwide exclusive license to PSMA. Cytogen and its
joint venture partner, Progenics Pharmaceuticals, are developing in-vivo
immunotherapies for prostate cancer based on PSMA. The Company also has U.S.
marketing rights to the late-stage product candidate Combidex(R), a magnetic
resonance imaging agent being developed by Advanced Magnetics for the detection
of lymph node metastases. The Company's subsidiary, AxCell Biosciences
Corporation, is developing a proprietary protein pathway database as a drug
discovery and development tool for the pharmaceutical and biotechnology
industries. For additional information on Cytogen, visit the Company's web sites
at www.cytogen.com and www.axcellbio.com
This press release contains certain "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Information in
this press release, which is not historical, is forward looking and involves a
number of risks and uncertainties. Investors are cautioned not to put any undue
reliance on any forward-looking statement. The Company's actual results may
differ materially from the Company's historical results of operations and those
discussed in the forward-looking statements for various reasons, including, but
not limited to the Company's ability to successfully complete the sale of its
New Jersey tax benefits under the State of New Jersey's tax loss sale program,
to carry out its business plan, successful development and commercial acceptance
of its products, ability to fund development necessary for existing products and
for the pursuit of new product opportunities, the risk of whether products
result from development activities, protection of its intellectual property
portfolio, ability to integrate in-licensed products, ability to establish and
successfully complete clinical trials where required for product approval, the
risk associated with obtaining the necessary regulatory approvals, dependence on
its partners for development of certain projects, the ability to obtain foreign
regulatory approvals for products and to establish marketing arrangements in
countries where approval is obtained, and other factors discussed in the
Company's 1999 Form 10-K and from time-to-time the Company's other filings with
the Securities and Exchange Commission.
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