Oncothyreon Reports Full Year and Fourth Quarter 2012 Financial Results

   Oncothyreon Reports Full Year and Fourth Quarter 2012 Financial Results

PR Newswire

SEATTLE, WA, March 14, 2013

Company to Hold Conference Call at 8:30 a.m. EST Today

SEATTLE, WA, March 14, 2013 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY)
today reported financial results for the year and quarter ending December 31,
2012.

Loss from operations for the year  ended December 31, 2012 was $28.5  million, 
compared with $24.7 million for the year ended December 31, 2011. The increase
in loss from operations  primarily resulted from an  increase in research  and 
development expenses to $22.0 million from $17.9 million, partially offset  by 
a decrease in general  and administrative expenses to  $6.5 million from  $6.9 
million. The increase in research  and development expenses in 2012  compared 
to 2011  was  primarily  the  result of  increased  development  activity  for 
Oncothyreon's  product  candidate,  PX-866.  The  decrease  in  general   and 
administrative expenses in 2012 compared to 2011 was primarily the result of a
non-cash reduction in share-based compensation related to the decrease in fair
value of the restricted share unit liability, whose value was affected by  the 
change in  our stock  price. The  reduction in  share-based compensation  was 
partly offset  by  higher  salaries  and benefits  expense  due  to  increased 
headcount and  higher legal  and accounting  expenses related  to patents  and 
regulatory compliance.

Net loss for the year  ended December 31, 2012 was  $3.4 million or $0.06  per 
basic and $0.53 per diluted share, compared with net loss of $42.7 million, or
$1.12 per basic and diluted share, for the year ended December 31, 2011.  The 
decrease in net loss  was primarily attributable to  non-cash income of  $25.5 
million as a result of the change  in fair value of warrant liability for  the 
year ended December 31, 2012 compared  to a non-cash expense of $17.6  million 
for the  year ended  December 31,  2011, partially  offset by  an increase  in 
operating expenses to $28.5 million in 2012 from $24.8 million in 2011.

Loss from operations for the quarter ended December 31, 2012 was $7.0  million 
compared with  $6.6 million  for  the quarter  ended  December 31,  2011.  The 
increase in loss  from operations resulted  from an increase  in research  and 
development expenses to $5.7 million from $4.2 million, partially offset by  a 
decrease in  general and  administrative expenses  to $1.3  million from  $2.4 
million. The  increase in  research  and development  expenses in  the  fourth 
quarter of  2012 compared  to the  fourth quarter  of 2011  was primarily  the 
result of increased development activity for Oncothyreon's product  candidate, 
PX-866. The decrease  in general  and administrative expenses  in the  fourth 
quarter of  2012 compared  to the  fourth quarter  of 2011  was primarily  the 
result of a  non-cash reduction  of share  based compensation  related to  the 
decrease in fair value of the restricted share unit liability, whose value was
affected by the change in Oncothyreon's stock price.

Net income for the quarter ended December 31, 2012 was $4.3 million, or  $0.07 
per basic share and $0.12 net loss per diluted share, compared with a net loss
of $11.5  million or  $0.27 per  basic and  diluted share  for the  comparable 
period in 2011. The net  income in 2012 compared to  the net loss in 2011  was 
primarily the result of  $11.2 million in non-cash  income from the change  in 
fair value  of warrant  liability  for the  quarter  ended December  31,  2012 
compared to a non-cash expense of $4.8 million for the quarter ended  December 
31, 2011,  partially offset  by  an increase  in  operating expenses  to  $7.0 
million in the fourth quarter of 2012  compared to $6.6 million in the  fourth 
quarter of 2011.

As of December 31, 2012, Oncothyreon's cash, cash equivalents and  investments 
were $83.8  million,  compared to  $66.4  million  at December  31,  2011,  an 
increase of $17.4 million, or 26.2  percent. The increase was attributable  to 
the closing of  an underwritten public  offering in April  2012 of  13,512,500 
shares  of  Oncothyreon  common  stock,   which  generated  net  proceeds   of 
approximately $50.3 million. This increase was offset in part by $27.3 million
cash used in operations, $4.1 million cash used in repayment in full of a term
loan with General Electric Capital Corporation (GECC), $0.9 million cash  used 
for principal payments on notes payable, and $0.8 million cash used in capital
expenditures during the year ended December 31, 2012.

Financial Guidance

Oncothyreon believes the following financial guidance to be correct as of  the 
date provided. Oncothyreon  is providing  this guidance as  a convenience  to 
investors and assumes no obligation to update it.

Expenses in  2013  are  expected  to be  slightly  higher  compared  to  2012, 
primarily as a result of the continuing development of PX-866 and the  ongoing 
Phase 1 clinical trial of ONT-10.  Oncothyreon currently expects cash used  in 
operations in  2013 to  be approximately  $30 to  $33 million.  As a  result, 
Oncothyreon estimates that its existing cash, cash equivalents and investments
will be sufficient to fund operations for at least the next 12 months.

Conference Call and Webcast

Oncothyreon will conduct a conference call today, March 14, 2013 at 8:30  a.m. 
Eastern time (5:30  a.m. Pacific  time) to discuss  its full  year and  fourth 
quarter 2012  financial  results and  provide  a  review of  its  pipeline  of 
products in development. To participate in the call by telephone, please dial
(877)  280-7291  (United  States)  or  (707)  287-9361  (International).   In 
addition, the call will be  webcast live and can  be accessed on the  "Events" 
page  of   the  "News   &  Events"   section  of   Oncothyreon's  website   at 
www.oncothyreon.com. An  archive  of  the webcast  will  be  available  after 
completion of the discussion and will be posted on Oncothyreon's website.

About Oncothyreon

Oncothyreon is  a biotechnology  company specializing  in the  development  of 
innovative therapeutic  products for  the treatment  of cancer.  Oncothyreon's 
goal is to  develop and  commercialize novel synthetic  vaccines and  targeted 
small molecules that have the potential  to improve the lives and outcomes  of 
cancer patients. For more information, visit www.oncothyreon.com.

Forward-Looking Statements

In order  to provide  Oncothyreon's  investors with  an understanding  of  its 
current results and  future prospects, this  release contains statements  that 
are forward-looking. Any statements contained  in this press release that  are 
not statements  of  historical  fact  may  be  deemed  to  be  forward-looking 
statements. Words  such  as  "believes,"  "anticipates,"  "plans,"  "expects," 
"will,"  "intends,"  "potential,"  "possible"  and  similar  expressions   are 
intended  to  identify   forward-looking  statements.  These   forward-looking 
statements  include  Oncothyreon's  expectations  regarding  future  expenses, 
clinical development activities and the use and adequacy of cash resources.

Forward-looking  statements  involve  risks   and  uncertainties  related   to 
Oncothyreon's business and the general economic environment, many of which are
beyond its control. These risks,  uncertainties and other factors could  cause 
Oncothyreon's actual  results to  differ materially  from those  projected  in 
forward-looking statements, including the risks associated with the costs  and 
expenses of developing its product  candidates, the adequacy of financing  and 
cash,  cash  equivalents  and  investments,  changes  in  general   accounting 
policies, general economic factors, achievement of the results it  anticipates 
from its  clinical  trials of  its  products  candidates and  its  ability  to 
adequately obtain  and  protect  its intellectual  property  rights.  Although 
Oncothyreon believes that the forward-looking statements contained herein  are 
reasonable, it can give  no assurance that its  expectations are correct.  All 
forward-looking statements are expressly qualified  in their entirety by  this 
cautionary statement. For  a detailed description  of Oncothyreon's risks  and 
uncertainties, you  are encouraged  to  review the  documents filed  with  the 
securities regulators in the  United States on EDGAR  and in Canada on  SEDAR. 
Oncothyreon  does  not  undertake  any  obligation  to  publicly  update   its 
forward-looking statements based  on events  or circumstances  after the  date 
hereof.

Additional Information

Additional information relating to Oncothyreon can be found on EDGAR at
www.sec.gov and on SEDAR at www.sedar.com.


                                       ONCOTHYREON INC.

                             Consolidated Statements of Operations

                       (In thousands except share and per share amounts)

                                          (Unaudited)

                           Three months ended                        Year ended
                                December31,                           December31,
                       2012           2011             2012           2011    
                                                                          
Revenue                                                                    
 Licensing                                                                 
  revenue from
  collaborative &
  licensing
  agreements       $           —    $           —      $           —     $          145 
Expenses                                                                   
 Research and                                                              
  development            5,653         4,151            22,001            17,915 
 General and                                                               
  administrative         1,317          2,407             6,498            6,929 
 Total operating                                                           
  expenses               6,970          6,558           28,499           24,844 
 Loss from                                                                 
  operations           (6,970)         (6,558)          (28,499)         (24,699) 
Other income                                                             
(expense)                                                                         
 Investment and                                                           
  other income
  (expense), net             40              15             (127)               305 
 Interest                                                                
  expense                     —           (178)             (309)             (631) 
 Change in fair                                                           
  value of
  warrant
  liability              11,184         (4,783)           25,520          (17,631) 
 Total other                                                             
  income
  (expense), net         11,224        (4,946)            25,084         (17,957) 
Net income         $                 $                   $                  $
(loss)                     4,254         (11,504)            (3,415)        (42,656) 
Net income (loss)  $                 $                   $                  $
per share -
basic                       0.07           (0.27)             (0.06)          (1.12) 
Net income (loss)  $                 $                   $                  $
per share -
diluted                   (0.12)           (0.27)           (0.53)          (1.12) 
Shares used to                                                           
compute basic net
income (loss)
per share             57,194,654       43,154,697       53,728,672      38,197,666 
Shares used to                                                           
compute diluted
net income(loss)
per share             57,786,081       43,154,697        54,899,955      38,197,666 
                                                                         

                               ONCOTHYREON INC.
                       Consolidated Balance Sheet Data
                     (In thousands except share amounts)
                                 (Unaudited)

                                                                   
                                          As of December 31, 
                                      2012                 2011
    Cash, cash equivalents and   $        83,756   $      66,407 
                    investments
                                                                
 Total assets                    $        89,435   $      71,539 
                                                                
 Long term liabilities           $         4,041   $      33,236 
                                                                
 Stockholders' equity            $        82,323   $      33,433 
                                                                
 Common shares outstanding         57,216,237       43,613,107 
                                                                

SOURCE Oncothyreon Inc.

Contact:

Investor and Media Relations Contact:
Julie Rathbun
Rathbun Communications
206-769-9219
ir@oncothyreon.com
 
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