AVEO Announces Exercise of Over-Allotment Option for Recent Public Offering

  AVEO Announces Exercise of Over-Allotment Option for Recent Public Offering

Business Wire

CAMBRIDGE, Mass. -- January 22, 2013

AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO) today announced that the
underwriters of its recent public offering of common stock have exercised
their option to purchase an additional 1,000,050 shares, the full amount of
the option granted to the underwriters, at the public offering price of $7.50
per share. All of the shares are being sold by AVEO. As a result, the company
expects to issue a total of 7,667,050 shares upon the closing of the offering
and to receive aggregate net proceeds, after underwriting discounts and
commissions and other estimated offering expenses, of approximately $53.8
million. The offering is expected to close on or about January 23, 2013,
subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities LLC is acting as sole book-running manager for the
offering, with RBC Capital Markets, LLC and Canaccord Genuity Inc. acting as
co-lead managers.

A shelf registration statement on Form S-3 relating to the public offering of
the shares of common stock described above was filed with the Securities and
Exchange Commission (the "SEC") and is effective. The offering is being made
by means of a prospectus and related prospectus supplement. Copies of the
prospectus supplement may be obtained, when available, from the offices of
J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, NY 11717 (Telephone number 866-803-9204).

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy these securities, nor shall there be any sale of these
securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or other
jurisdiction.

About AVEO

AVEO (NASDAQ: AVEO) is a cancer therapeutics company committed to discovering,
developing and commercializing targeted therapies to impact patients' lives.
AVEO Pharmaceuticals, Inc. conducts business as AVEO Oncology.

Forward-looking Statements

Certain of the statements made in this press release are forward-looking, such
as those, among others, relating to our expectations regarding the completion
of the proposed public offering. Actual results or developments may differ
materially from those projected or implied in these forward-looking
statements. Factors that may cause such a difference include, without
limitation, risk and uncertainties related to whether or not we will be able
to raise capital through the sale of shares of common stock, market and other
conditions, the satisfaction of customary closing conditions related to the
proposed public offering and the impact of general economic, industry or
political conditions in the United States or internationally. There can be no
assurance that we will be able to complete the proposed public offering on the
anticipated terms, or at all. You should not place undue reliance on these
forward-looking statements, which apply only as of the date of this press
release. Additional risks and uncertainties relating to the proposed offering,
AVEO and our business can be found under the heading “Risk Factors” included
in AVEO’s current report on Form 8-K filed with the SEC on January 16, 2013
and in the prospectus supplement related to the proposed offering filed with
the SEC on January 17, 2013, and in other filings that AVEO periodically makes
with the SEC. In addition, the forward-looking statements included in this
press release represent our views as of the date of this press release. We
anticipate that subsequent events and developments will cause our views to
change. However, while we may elect to update these forward-looking statements
at some point in the future, we specifically disclaim any obligation to do so.
These forward-looking statements should not be relied upon as representing our
views as of any date subsequent to the date of this press release.

Contact:

AVEO Oncology
Investor Relations:
Monique Allaire, 617-299-5810
or
Media Relations:
Rob Kloppenburg, 617-299-5655