South San Francisco-based OXiGENE says auditors have expressed doubts about the company's ability to continue as a going concern.
"We will be required to raise additional funds to finance our operations and remain a going concern; we may not be able to do so when necessary, and/or the terms of any financings may not be advantageous to us," according to the March 16 filing with the SEC.
The company also notes in the March filing that it has experienced net losses every year since its inception, and, as of Dec. 31, 2009, had amassed a deficit of about $183.9 million. And it anticipates incurring "substantial additional losses" over the next several years.
Last month, OXiGENE announced restructuring plans days after shareholders at VaxGen snubbed a buyout offer. The merger deal with VaxGen would have given OXiGENE the $33 million on VaxGen's books. But after winning support from shareholders with only 40 percent of VaxGen's shares, OXiGENE declined VaxGen's offer to regroup and seek more support.
As a result, OXiGENE said it was cutting its 41-person workforce by 20 and halting further enrollment for a Phase II/III trial on thyroid cancer. The developer added it will concentrate its efforts on a mid-stage study of Zybresta for non-small cell lung cancer.
Shares of the company fell 3 percent to $1.16 in premarket trade. They closed at $1.20 Thursday on NASDAQ, Reuters notes.