OncoGenex Pharmaceuticals, Inc. Provides Update on Clinical Development Program and Reports Financial Results for Fourth Quarter

   OncoGenex Pharmaceuticals, Inc. Provides Update on Clinical Development
  Program and Reports Financial Results for Fourth Quarter and Year End 2012

Conference call to be held on Thursday, March 7, 2013 at 4:30 p.m. Eastern
Time

PR Newswire

BOTHELL, Wash. and VANCOUVER, British Columbia, March 7, 2013

BOTHELL, Wash. and VANCOUVER, British Columbia, March 7, 2013 /PRNewswire/
--OncoGenex Pharmaceuticals, Inc. (NASDAQ: OGXI) today highlighted key
clinical development activities for its two product candidates, custirsen and
OGX-427, and announced its fourth quarter and year end 2012 financial results.

Custirsen Clinical Development Highlights

  oThe Company announced completion of patient enrollment of more than 1,000
    men in the primary registration Phase 3 SYNERGY study in the fourth
    quarter of 2012. The SYNERGY study is designed to evaluate a survival
    benefit for custirsen, in combination with first-line docetaxel
    chemotherapy, in men with metastatic castrate-resistant prostate cancer
    (CRPC). The expected timing of results is based on a pre-specified number
    of death events that is projected to occur in the fourth quarter of 2013,
    with data results expected to be announced in the first half of 2014.
  oPatient enrollment began in the third quarter of 2012 in the Phase 3
    AFFINITY study, evaluating a survival benefit for custirsen in combination
    with Jevtana® (cabazitaxel) as second-line chemotherapy. AFFINITY aims to
    enroll approximately 630 men with CRPC and is being conducted at sites
    throughout North America, Europe and Australia.
  oPatient enrollment began in the third quarter of 2012 in the Phase 3
    ENSPIRIT trial, a randomized Phase 3 study in approximately 1,100 patients
    with advanced or metastatic non-small cell lung cancer (NSCLC). ENSPIRIT
    will evaluate the potential survival benefit of combining custirsen with
    docetaxel as second-line chemotherapy. Custirsen has also recently
    received Fast Track designation from the FDA for the second-line treatment
    of advanced NSCLCwhen combined with docetaxel in patients with disease
    progression following treatment with a first-line, platinum-based
    chemotherapy doublet regimen. 

OGX-427 Clinical Development Highlights

  oIn December 2012, the Company announced the initiation of the Pacific
    trial, an investigator-sponsored, randomized Phase 2 study evaluating
    OGX-427 in approximately 80 men with CRPC who are experiencing a rising
    prostate-specific antigen (PSA) while receiving Zytiga® (abiraterone
    acetate). The study is currently enrolling at sites in the United States
    and Canada.
  oThe company-sponsored, randomized Phase 2 clinical trial of OGX-427 in
    combination with gemcitabine and cisplatin in patients with metastatic
    bladder cancer, Borealis-1, continues to enroll patients throughout the
    United States, Canada and Europe. The study aims to enroll approximately
    180 patients and is expected to complete patient accrual in the second
    half of 2013.
  oThe Company also recently announced plans for the initiation of an
    investigator-sponsored, randomized Phase 2 study evaluating OGX-427 in
    patients with advanced or metastatic bladder cancer who have disease
    progression following initial platinum-based chemotherapy. The trial,
    Borealis-2, will seek to enroll approximately 200 patients to receive
    either OGX-427 plus docetaxel treatment or docetaxel treatment alone and
    is expected to begin in the first half of 2013.
  oPacific, Borealis-1 and Borealis-2 are part of the "ORCA" (On-going
    studies evaluating treatment Resistance in CAncer) program that
    encompasses clinical studies of OGX-427 across multiple cancer
    indications. Plans to initiate additional studies as part of the ORCA
    program will be announced in the coming months.

Financial Update and Results

  oRevenue for the fourth quarter and year ended December 31, 2012 increased
    to $9.8 million and $20.1 million, respectively. This compares with $1.2
    million and $5.5 million, respectively, in the same periods in 2011. The
    increase in 2012 compared to 2011 was due to an increase in revenue earned
    through the Company's strategic collaboration with Teva, as a result of
    the clinical development activities associated with the AFFINITY trial
    which was initiated in August 2012. Revenue for 2012 included recognition
    of $18.3 million from the $30.0 million upfront payment, as well as
    $1.8million earned through collaborative research.
  oAt December 31, 2012, the $30.0 million advanced reimbursement received
    from Teva in December 2009 was fully expended resulting in a Current
    Deferred Collaboration Revenue balance of zero. Teva is required to fund
    all additional expenses under the Amended Clinical Development Plan.
  oTotal operating expenses for the fourth quarter and year ended December
    31, 2012 increased to $16.0 million and $46.0 million, respectively,
    compared with $9.2 million and $27.8 million, respectively, in the same
    periods in 2011. The increase in 2012 as compared to 2011 was due
    primarily to higher clinical study expenses associated with the start-up
    of the AFFINITY trial, increased patient enrollment in the Borealis-1
    trial, OGX-427 manufacturing costs and increased employee expenses,
    including stock-based compensation expense. These increases were
    partially offset by lower preclinical expenses. Included in operating
    expenses for the fourth quarter and year ended December 31, 2012 was a
    $1.7 million restructuring gain related to revised assumptions used to
    estimate the value of the Company's excess lease liability.
  oNet loss for the fourth quarter and year ended December 31, 2012 was $4.1
    million, or $0.28 per diluted common share, and $21.1 million, or $1.56
    per diluted common share, respectively. Net loss for the fourth quarter
    and year ended December 31, 2011 was $9.6 million, or $0.98 per diluted
    common share, and $14.7 million, or $1.51 per diluted common share,
    respectively. The net loss in the years ended December 31, 2012 and 2011
    included a non-cash gain on revaluation of our warrant liability of $4.5
    million and $7.4 million, respectively.
  oWe had $75.4 million in cash, cash equivalents and short-term investments
    as of December 31, 2012, compared to $64.9 million as of December 31,
    2011.
  o2013 cash guidance:

       oNet cash requirements are expected to be in the range of $40 million
         to $50 million.
       oYear-end cash, cash equivalents and investments are expected to be in
         the range of $25 million to $35 million.

  oBased on our current expectations, we believe our capital resources as of
    December 31, 2012 will be sufficient to fund our currently planned
    operations into 2015.
  oAt March 7, 2013, we had 14,658,766 shares outstanding.



Consolidated Statements of Loss
(In thousands, except per share and share data)
(unaudited)
                          Three months ended     Year ended December 31,
                          December 31,
                          2012        2011       2012             2011
Collaboration revenue     $        $       $   20,095     $   5,496
                          9,780      1,236
Operating expenses:
 Research and            15,645      7,477      39,948           21,553
development
 General and             2,042       1,731      7,791            6,230
administrative
 Restructuring gain      (1,657)     -          (1,657)          -
 Total operating       16,030      9,208      46,082           27,783
expenses
Loss from operations      6,250       7,972      25,987           22,287
 Other income (expense)  2,147       (1,596)    4,889            7,614
Loss for the period       (4,103)     (9,568)    (21,098)         (14,673)
before income taxes
 Income taxes            -           -          -                -
Net loss                  $         $        $  (21,098)     $ (14,673)
                          (4,103)    (9,568)
Basic and diluted net     $        $       $    (1.56)   $  
loss per share            (0.28)     (0.98)                      (1.51)
Weighted average number
of basic and diluted      14,656,793  9,748,639  13,522,723       9,729,340
common shares
Consolidated Balance Sheets
(In thousands)
                                                 December 31,   December
                                                                  31,
                                                 2012             2011
                                                 (unaudited)
Assets:
 Cash, cash
equivalents, short term                          $    75,697   $   
investments and                                                   65,304
restricted cash
 Interest receivable                            327              363
 Amounts receivable                             714              449
 Prepaid and other                              3,755            1,210
current assets
 Property, equipment                            1,523            689
and other assets
Total assets                                     $    82,016   $   
                                                                  68,015
Liabilities and
stockholders' equity:
 Accounts payable and                           $     7,050  $    
accrued liabilities                                               3,217
 Deferred collaboration                         -                18,271
revenue
 Current portion of                             1,084            1,417
long-term obligations
 Warrant liability                              3,422            7,881
 Long term liabilities                          4,253            6,339
 Stockholders' equity                           66,207           30,890
Total liabilities and                            $    82,016   $   
stockholders' equity                                              68,015



Conference Call Details

OncoGenex will host a conference call at 4:30 p.m. Eastern Time today,
Thursday, March 7, 2013, to provide a business update and discuss the fourth
quarter and year end 2012 results.

A live event will be available on the Investor Relations section of the
OncoGenex Web site at www.OncoGenex.com. Alternatively, you may access the
live conference call by dialing 877-606-1416 (U.S. & Canada) or 707-287-9313
(International). A replay of the webcast will be available approximately two
hours after the call and will be archived for 90 days.

ABOUT ONCOGENEX
OncoGenex is a biopharmaceutical company committed to the development and
commercialization of new therapies that address treatment resistance in cancer
patients. OncoGenex has a diverse oncology pipeline, with each product
candidate having a distinct mechanism of action and representing a unique
opportunity for cancer drug development.OncoGenexandTeva Pharmaceutical
Industries Ltd.(NYSE:TEVA) have entered a global collaboration and license
agreement to develop and commercialize OncoGenex' lead drug candidate,
custirsen. Custirsen is currently in Phase 3 clinical development as a
treatment in men with metastatic castrate-resistant prostate cancer and in
patients with advanced, unresectable non-small cell lung cancer. OGX-427 is in
Phase 2 clinical development and OGX-225 is currently in pre-clinical
development. More information is available at www.OncoGenex.com.

OncoGenex' Forward Looking Statements
This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, statements concerning our anticipated
product development activities, such as expected clinical trial completion and
design, statements regarding the potential benefits and potential development
of our product candidates and statements regarding our expected financial
results and expected cash requirements. All statements other than statements
of historical fact are statements that could be deemed forward-looking
statements. These statements are based on management's current expectations
and beliefs and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially from those
described in the forward-looking statements. Such forward-looking statements
are subject to risks and uncertainties, including, among others, the risk that
our product candidates will not demonstrate the hypothesized or expected
benefits, the risk of delays in our expected clinical trials, the risk that
new developments in the rapidly evolving cancer therapy landscape require
changes in our clinical trial plans or limit the potential benefits of our
product, the risk that our cash resources are insufficient to fund our planned
activities for the time period expected and the other factors described in our
risk factors set forth in our filings with the Securities and Exchange
Commission from time to time, including the Company's Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation
to update the forward-looking statements contained herein or to reflect events
or circumstances occurring after the date hereof, other than as may be
required by applicable law.

JEVTANA® is a registered trademark of sanofi-aventis
Zytiga® is a registered trademark of the Johnson & Johnson Corporation

SOURCE OncoGenex Pharmaceuticals, Inc.

Website: http://www.oncogenex.com
Contact: Jaime Welch, jwelch@oncogenex.com, +1-604-630-5403, or Investor
Relations Contact: Susan Specht, sspecht@oncogenex.com, +1-425-686-1535