Aastrom Biosciences Reports Fourth-Quarter and Year-End 2012 Financial Results

Mon Mar 18, 2013 4:00pm EDT

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ANN ARBOR, Mich., March 18, 2013 (GLOBE NEWSWIRE) -- Aastrom Biosciences, Inc. (Nasdaq:ASTM), the
leading developer of patient-specific expanded multicellular therapies for the treatment of severe
chronic cardiovascular diseases, today reported financial results for the fourth quarter and year
ended December 31, 2012.

Aastrom reported a net loss attributable to common shareholders of $7.9 million, or $0.18 per
share, for the fourth quarter and $33.5 million, or $0.81 per share, for the year ended December
31, 2012 compared to a net loss of $2.8 million, or $0.07 per share, and $19.7 million, or $0.51
per share, for the same periods in 2011. The increase in net loss for both periods is primarily
due to the non-cash change in the fair value of warrants, the non-cash accretion of our
convertible preferred stock and increases in research and development expenses.

Research and development expenses for the quarter and year ended December 31, 2012 were $6.0
million and $26.0 million, respectively, versus $5.9 million and $21.3 million for the same
periods in 2011. The increase in R&D expenses for both periods was primarily attributable to the
launch of the Phase 2b ixCELL-DCM clinical study and the ongoing Phase 3 REVIVE clinical program
for ixmyelocel-T, as well as an increase in non-cash stock-based compensation expenses.

General and administrative expenses for the quarter and year ended December 31, 2012 were $1.6
million and $7.8 million, respectively, compared to $1.9 million and $7.7 million for the same
periods in 2011. The fourth quarter of 2012 includes a reversal of nearly $1 million in non-cash
stock based compensation expense related to stock option forfeitures. This was offset by an
increase in non-cash stock based compensation expense before the forfeiture adjustment and
slightly higher legal and consulting costs.

Other income for the quarter and year ended December 31, 2012 was $1.0 million and $4.3 million,
respectively, compared to $5.0 million and $9.4 million for the same periods a year ago. The
fluctuations are due to non-cash changes in the fair value of the company's outstanding warrants,
primarily driven by the change in the fair market value of the company's common stock in these
periods.

As of December 31, 2012, the company had $13.6 million in cash and cash equivalents, compared to
$5.5 million in cash and cash equivalents at December 31, 2011. For the quarter and year ended
December 31, 2012, cash used for operations was $7.3 million and $29.5 million, respectively.

Recent Business Highlights

During and since the fourth quarter of 2012, the company has:

* Appointed Nick Colangelo as president and chief executive officer;
* Initiated patient enrollment in the Phase 2b ixCELL-DCM clinical study of ixmyelocel-T in
patients with ischemic dilated cardiomyopathy;
* Increased the number of clinical investigators and sites participating in the Phase 3 REVIVE
clinical study of ixmyelocel-T in patients with critical limb ischemia; and
* Appointed Joyce Frey-Vasconcells, Ph.D., to the company's scientific advisory board.

Nick Colangelo, Aastrom's president and chief executive officer, stated: "I am honored to have
joined Aastrom at a time when we are making important progress in advancing our ixmyelocel-T
clinical programs for patients with severe cardiovascular diseases who have poor or no treatment
options. In the year ahead, we will be focused on completing enrollment in the Phase 2b ixCELL-DCM
study, accelerating the rate of enrollment in the Phase 3 REVIVE study, addressing our capital
requirements and managing our programs and resources as efficiently as possible. I am excited
about the opportunities before us and look forward to reporting on our progress throughout 2013."

Conference Call Information

Aastrom's management will host a conference call to discuss these results at 4:30 p.m. Eastern
time today. Interested parties should call toll-free (877) 312-5881, or from outside the U.S.
(253) 237-1173 and use conference ID 92135677. The call will be available live in the Investors
section of Aastrom's website at http://investors.aastrom.com/investors.cfm
http://www.globenewswire.com/newsroom/ctr?d=10025559&l=11&u=http%3A%2F%2Finvestors.aastrom.com%2Finvestors.cfm
. A replay of the call will be available until March 22, 2013 by calling (855) 859-2056, or from
outside the U.S. at (404) 537-3406 and using conference ID 92135677. A podcast will also be
available after the live event at http://investors.aastrom.com/events.cfm
http://www.globenewswire.com/newsroom/ctr?d=10025559&l=11&u=http%3A%2F%2Finvestors.aastrom.com%2Fevents.cfm
.

About Aastrom Biosciences

Aastrom Biosciences is the leader in developing patient-specific, expanded multicellular therapies
for use in the treatment of patients with severe, chronic cardiovascular diseases. The company's
proprietary cell-processing technology enables the manufacture of ixmyelocel-T, a patient-specific
multicellular therapy expanded from a patient's own bone marrow and delivered directly to damaged
tissues. Aastrom has advanced ixmyelocel-T into late-stage clinical development, including a Phase
3 clinical program to study patients with critical limb ischemia and a Phase 2b clinical trial in
patients with ischemic dilated cardiomyopathy. For more information, please visit Aastrom's
website at www.aastrom.com
http://www.globenewswire.com/newsroom/ctr?d=10025559&l=13&a=www.aastrom.com&u=http%3A%2F%2Fwww.aastrom.com%2F
. For more information on the pivotal REVIVE Phase 3 clinical trial, please visit the trial
website at www.revivecli.com
http://www.globenewswire.com/newsroom/ctr?d=10025559&l=13&a=www.revivecli.com&u=http%3A%2F%2Fwww.revivecli.com%2F
.

The Aastrom Biosciences, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3663
http://www.globenewswire.com/newsroom/ctr?d=10015443&l=5&u=http%3A%2F%2Fwww.globenewswire.com%2Fnewsroom%2Fprs%2F%3Fpkgid%3D3663


This document contains forward-looking statements, including, without limitation, statements
concerning clinical trial plans and progress, objectives and expectations, clinical activity
timing, intended product development, the performance and contribution of certain individuals and
expected timing of collecting and analyzing treatment data, all of which involve certain risks and
uncertainties. These statements are often, but are not always, made through the use of words or
phrases such as "anticipates," "intends," "estimates," "plans," "expects," "we believe," "we
intend," and similar words or phrases, or future or conditional verbs such as "will," "would,"
"should," "potential," "could," "may," or similar expressions. Actual results may differ
significantly from the expectations contained in the forward-looking statements. Among the factors
that may result in differences are the inherent uncertainties associated with clinical trial and
product development activities, regulatory approval requirements, competitive developments, and
the availability of resources and the allocation of resources among different potential uses.
These and other significant factors are discussed in greater detail in Aastrom's Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange
Commission. These forward-looking statements reflect management's current views and Aastrom does
not undertake to update any of these forward-looking statements to reflect a change in its views
or events or circumstances that occur after the date of this release except as required by law.

                                                                                                         
 AASTROM BIOSCIENCES, INC.                                                                               
 (in thousands, except per share amounts)                                                                
                                                                                                         
 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)                                                       
                                                                                                       
                                                                           December 31,  December 31,  
                                                                           2011          2012          
 ASSETS                                                                                                
 Cash and cash equivalents                                                 $ 5,530       $ 13,638      
 Other current assets                                                      645           352           
 Property and equipment, net                                               1,564         1,118         
 Total assets                                                              $ 7,739       $ 15,178      
                                                                                                       
 LIABILITIES, CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS' DEFICIT                                    
 Warrant liabilities                                                       $ 16,625      $ 1,995       
 Other current liabilities                                                 4,045         3,664         
 Long-term debt                                                            40            6             
 Series B-1 non-voting convertible preferred stock                         --            3,923         
 Series B-2 voting convertible preferred stock                             --            37,690        
 Shareholders' deficit                                                     (12,971)      (32,100)      
 Total liabilities, convertible preferred stock and shareholders' deficit  $ 7,739       $ 15,178      


                                                                                                                                                
                                                                                                                                                    
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                                                                                        
                                                                                                                                                
                                                                             Quarter Ended                       Year Ended                       
                                                                             December 31,                        December 31,                     
                                                                             2011           2012                2011                2012        
                                                                                                                                                
 REVENUES                                                                    $ --           $ 19                $ 18                $ 21        
                                                                                                                                                
 COSTS AND EXPENSES                                                                                                                             
 Cost of product sales and rentals                                           --             4                   4                   6           
 Research and development                                                    5,904          6,013               21,330              26,025      
 Selling, general and administrative                                         1,930          1,619               7,724               7,750       
 Total costs and expenses                                                    7,834          7,636               29,058              33,781      
                                                                                                                                                
 LOSS FROM OPERATIONS                                                        (7,834)        (7,617)             (29,040)            (33,760)    
                                                                                                                                                
 OTHER INCOME (EXPENSE)                                                                                                                         
 Decrease in fair value of warrants                                          5,044          959                 9,329               4,248       
 Other income, net                                                           1              8                   43                  38          
 Total other income                                                          5,045          967                 9,372               4,286       
                                                                                                                                                
 NET LOSS                                                                    (2,789)        (6,650)             (19,668)            (29,474)    
                                                                                                                                                
 ACCRETION OF CONVERTIBLE PREFERRED STOCK                                    --             1,255        --                                     
                                                                                                                                                
 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS                                $ (2,789)      $ (7,905)           $ (19,668)          $ (33,467)  
                                                                                                                                                
 NET LOSS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Basic and Diluted)  $ (0.07)       $ (0.18)            $ (0.51)            $ (0.81)    
                                                                                                                                                
 Weighted average number of common shares outstanding (Basic and Diluted)    38,635         43,784              38,627              41,199      


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