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Tekmira Provides Corporate Update and Announces Year-End Audited 2012 Results



Tekmira Provides Corporate Update and Announces Year-End Audited 2012 Results

Conference Call at 4:30 pm Eastern Time Today

VANCOUVER, British Columbia, March 27, 2013 (GLOBE NEWSWIRE) -- Tekmira
Pharmaceuticals Corporation (Nasdaq:TKMR) (TSX:TKM), a leading developer of
RNA interference (RNAi) therapeutics, today announced its 2012 audited
financial results and provided a corporate update.

"Over the last year, Tekmira has contributed to significant advancements in
the field of RNAi. Our LNP technology has enabled promising clinical data sets
in a number of different clinical indications. Looking ahead, in order to
bring innovative new therapeutics to patients and maximize value for our
shareholders, we must continue to focus on developing our proprietary pipeline
of RNAi products in a range of therapeutically important, commercially
attractive markets," said Dr. Mark J. Murray, Tekmira's President and CEO.

Results from our Phase I clinical trial with TKM-PLK1, our lead cancer
program, will be presented at the upcoming American Association for Cancer
Research meeting in April, and we intend to initiate a TKM-PLK1 Phase II
clinical trial later this year. In collaboration with the U.S. Department of
Defense's TMT program, we will continue to advance our TKM-Ebola product. And,
we expect to nominate and move forward with our next target for product
development later this year.

Looking at upcoming catalysts from our partners, Alnylam has guided that it
expects to complete its ALN-TTR02 Phase II trial and report results in
mid-2013, and expects to start a Phase III trial for ALN-TTR02 by the end of
2013. In 2013, we expect to receive $10 million in milestone payments from
Alnylam. In addition, we are entitled to future royalty payments from Talon
based on sales of Marqibo, which was approved by the FDA last year. With our
LNP technology platform, which is considered the 'gold-standard' in RNAi
delivery, we continue to collaborate with a number of pharmaceutical,
biotechnology and agricultural companies, and we are actively working to grow
the number of companies using our technology," added Dr. Murray.

Corporate Update and Highlights

Tekmira's Products

TKM-PLK1, Tekmira's Lead Oncology Therapeutic

Tekmira's lead oncology product candidate, TKM-PLK1, targets PLK1 (polo-like
kinase 1), a protein required for tumor cell proliferation and a validated
oncology target. Inhibition of PLK1 expression prevents the tumor cell from
completing cell division, resulting in cell cycle arrest and death of the
cancer cell.

Results from the dose escalation portion of a Phase I clinical trial will be
presented at the upcoming American Association for Cancer Research Annual
Meeting held from April 6-10, 2013 in Washington, DC. Tekmira intends to
initiate a Phase II clinical trial in 2013. Patient enrollment is continuing
in an expansion cohort of the TKM-PLK1 Phase 1 clinical trial at the maximum
tolerated dose.

TKM-Ebola, Tekmira's Collaboration with the U.S. Department of Defense

Tekmira is developing an anti-Ebola virus product called TKM-Ebola under a
$140 million contract with the U.S. Department of Defense's Transformational
Medical Technologies (TMT) Program. Tekmira has submitted a modification
request to the existing contract in order to integrate recent advancements in
LNP formulation technology that are 10 times more potent than previous
formulations and more potent than all other LNP formulations currently being
evaluated in clinical trials. It is expected that the LNP formulation work
will be completed and submitted to the FDA in the second half of 2013 in order
to initiate a new Phase 1 clinical trial.

Other Preclinical Candidates

Tekmira has a number of other preclinical candidates in its pipeline with the
potential to address a variety of therapeutic needs. The research team at
Tekmira will continue to generate data to support the advancement of the most
promising of these targets and expects to be in a position to nominate the
next product candidate for development in 2013.

Partners' Products

Tekmira has granted a license to Alnylam Pharmaceuticals, Inc. to use
Tekmira's LNP technology to enable RNAi therapeutic products. Tekmira will
receive milestone and royalty payments as these LNP-enabled products are
developed and commercialized.

ALN-TTR

Alnylam has guided that results from a Phase II clinical trial with ALN-TTR02
– an RNAi therapeutic for the treatment of ATTR that is enabled by Tekmira's
LNP technology – are anticipated to be reported in mid-2013. Tekmira is
entitled to receive a $5 million milestone payment when ALN-TTR02 enters a
pivotal or Phase III clinical trial, which Alnylam has guided will occur by
the end of 2013. Tekmira is eligible to receive royalty payments based on
commercial sales of ALN-TTR.

ALN-VSP

ALN-VSP, which is a systemically delivered RNAi therapeutic for the treatment
of advanced solid tumors with liver involvement, is enabled by Tekmira's LNP
technology. Complete results from the ALN-VSP Phase I clinical trial and
extension study were published in January 2013 in the journal Cancer
Discovery. Tekmira is entitled to receive a US$5 million milestone payment for
enabling ALN-VSP to enter a clinical trial in China, which is expected to
occur in 2013. Tekmira is eligible to receive royalty payments based on
commercial sales of ALN-VSP.

ALN-PCS

ALN-PCS, which is an RNAi therapeutic to treat hypercholesterolemia or high
levels of cholesterol in the blood, is enabled by Tekmira's LNP technology. In
February 2013, Alnylam disclosed an exclusive global alliance with The
Medicines Company to advance ALN-PCS. Tekmira is eligible to receive royalty
payments based on commercial sales of ALN-PCS.

Partnerships

In November 2012, Tekmira obtained a worldwide, non-exclusive license to a
novel RNAi payload technology, called Unlocked Nucleobase Analog (UNA), for
the development of RNAi therapeutics from Marina Biotech, Inc. UNA technology
can be used in the development of RNAi therapeutics, which treat disease by
silencing specific disease causing genes. UNAs can be incorporated into RNAi
drugs and have the potential to improve them by increasing their stability and
reducing off-target effects. Marina will receive milestone and royalty
payments on products developed by Tekmira that use UNA technology.

Marqibo, which is a liposomal formulation of the chemotherapy drug vincristine
– along with two other liposomal chemotherapy products, Alocrest and Brakiva –
were licensed from Tekmira to Talon Therapeutics, Inc. in 2006. Talon is
responsible for all future development of these products. On August 9, 2012,
Tekmira disclosed that Talon received accelerated approval from the FDA for
Marqibo® (vinCRIStine sulfate LIPOSOME injection) for the treatment of adult
patients with Philadelphia chromosome negative (Ph-) acute lymphoblastic
leukemia (ALL) in second or greater relapse or whose disease has progressed
following two or more anti-leukemia therapies. Tekmira received a US$1 million
milestone payment based on the FDA approval of Marqibo and is eligible to
receive royalty payments based on Marqibo's commercial sales.

Tekmira continues to foster its partnerships with pharmaceutical and
biotechnology companies, including the team at Bristol Myers Squibb, which
continues to use our LNP technology to validate targets of interest, along
with one of the major agricultural companies that is evaluating plant-based
RNAi applications. With clarity around the intellectual property protecting
its LNP technology platform, Tekmira is well-positioned to pursue product,
platform and strategic partnering deals and will provide updates throughout
this year.

Financial Results

Net income/loss

For the fiscal year ended December 31, 2012, net income was $29.8 million
($2.17 basic income per common share, $2.08 diluted income per common share)
as compared to a net loss of $9.9 million ($0.88 basic and fully diluted loss
per common share) for 2011. The income was primarily the result of the US$65.0
million licensing settlement payment received from Alnylam in November 2012.

Revenue

Revenue was $14.1 million for 2012 as compared to $16.6 million in 2011.

Over the past two years, Tekmira's principal sources of revenue have been a
contract with the U.S. Government to develop TKM-Ebola which began in July
2010 and an Alnylam partnership entered into in March 2006.

Under its U.S. Government contract to develop TKM-Ebola, Tekmira is being
reimbursed for costs incurred, including an allocation of overheads, and is
being paid an incentive fee. For this contract, Tekmira recorded $11.5 million
in revenue in 2012 as compared to $11.4 million in 2011.

In Q2 2012, Tekmira earned a US$1.0 million milestone from Alnylam following
their initiation of a Phase 2 human clinical trial for their product candidate
ALN-TTR02. ALN-TTR02 utilizes Tekmira's LNP technology. In Q3 2012, Tekmira
earned a US$1.0 million milestone payment from Talon based on the FDA's
approval of Marqibo and will receive royalty payments based on Marqibo's
commercial sales.

Research, development, collaborations and contracts expenses

Research, development, collaborations and contracts expenses were $18.0
million in 2012 as compared to $19.9 million in 2011. Spending on internal
earlier-stage research programs was reduced as the Company focused on
TKM-Ebola, TKM-PLK1 and litigation against Alnylam and AlCana Technologies,
Inc.

General and administrative

General and administrative expenses were $8.1 million in 2012 as compared to
$6.3 million in 2011. The increase in 2012 largely relates to legal fees
incurred in respect of the lawsuit with Alnylam and AlCana (excluding
contingent legal fees that have been recorded as other losses).

Other income (losses)

In November 2012 Tekmira settled all outstanding litigation against Alnylam
and AlCana. Tekmira received US$65.0 million in cash from Alnylam as a result
of signing a new license agreement. This includes US$30.0 million associated
with the termination of a manufacturing agreement and US$35.0 million
associated with the termination of the previous license agreements, as well as
a reduction of the milestone and royalty schedules associated with Alnylam's
ALN-VSP, ALN-PCS, and ALN-TTR programs. Of the US$65.0 million received from
Alnylam, US$18.7 million was subsequently paid by Tekmira to its lead legal
counsel, who represented Tekmira in the lawsuit against Alnylam and AlCana, in
satisfaction of a contingent obligation owed to that counsel.

2013 financial guidance

At December 31, 2012, Tekmira had cash and cash equivalents of approximately
$46.8 million.

Total revenues for 2013 are expected to increase over 2012 and to be in the
range of $20.0 to $25.0 million. This is based primarily on continued contract
revenue from the U.S. Government and US$10.0 million in milestone payments
expected from Alnylam.

Total research, development, collaborations and contracts expenses are
expected to increase to $24.0 to $29.0 million in 2013. TKM-PLK1 is expected
to enter a Phase 2 human clinical trial in 2013. Tekmira will continue to
incur costs developing TKM-Ebola (although these costs will be funded by
revenue earned from the U.S. Government) and the Company is working towards
nominating its next product candidate in 2013. Tekmira also expects its
workforce to grow in support of its expanded product pipeline.

Total general and administrative expenses are expected to decrease to $3.0 to
$5.0 million in 2013.

Tekmira believes that its current funds on hand, plus expected income,
including payments from current licensees, collaborative partners and the U.S.
Government will be sufficient to continue product development into 2015. Based
on assumptions discussed in the revenue and expense guidance above, Tekmira
expects to have an aggregate balance of cash and cash equivalents and
short-term investments of greater than $35.0 million at the end of 2013.

Conference Call Information

Tekmira will hold a conference call and webcast today (Wednesday, March 27,
2013) at 1:30 pm Pacific Time (4:30 pm Eastern Time) to discuss its 2012
results and provide a corporate update. A live webcast of the call can be
accessed through the Investor section of Tekmira's website at
www.tekmirapharm.com. Or, alternatively, to dial into the conference call,
please call 914-495-8556 or 1-866-393-1607.

An archived webcast of this conference call will be available on the Tekmira
website approximately two hours after the event. Or alternatively, you may
access a replay of the conference call by calling 404-537-3406 or
1-855-859-2056 and referencing conference ID 26000337.

About RNAi and Tekmira's LNP

RNAi therapeutics have the potential to treat a broad number of human diseases
by "silencing" disease causing genes. The discoverers of RNAi, a gene
silencing mechanism used by all cells, were awarded the 2006 Nobel Prize for
Physiology or Medicine. RNAi therapeutics, such as "siRNAs," require delivery
technology to be effective systemically. Tekmira believes its LNP technology
represents the most widely adopted delivery technology for the systemic
delivery of RNAi therapeutics. Tekmira's LNP platform is being utilized in
multiple clinical trials by both Tekmira and its partners. Tekmira's LNP
technology (formerly referred to as stable nucleic acid-lipid particles or
SNALP) encapsulates siRNAs with high efficiency in uniform lipid nanoparticles
that are effective in delivering RNAi therapeutics to disease sites in
numerous preclinical models. Tekmira's LNP formulations are manufactured by a
proprietary method which is robust, scalable and highly reproducible, and
LNP-based products have been reviewed by multiple FDA divisions for use in
clinical trials. LNP formulations comprise several lipid components that can
be adjusted to suit the specific application.

About Alnylam RNAi Technology

Tekmira has licenses to Alnylam RNAi intellectual property for certain siRNA
programs.

About Tekmira

Tekmira Pharmaceuticals Corporation is a biopharmaceutical company focused on
advancing novel RNAi therapeutics and providing its leading lipid nanoparticle
delivery technology to pharmaceutical partners. Tekmira has been working in
the field of nucleic acid delivery for over a decade and has broad
intellectual property covering LNPs. Further information about Tekmira can be
found at www.tekmirapharm.com. Tekmira is based in Vancouver, B.C.

The Tekmira Pharmaceuticals logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8319

Forward-Looking Statements and Information

This news release contains "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws (collectively,
"forward-looking statements"). Forward-looking statements are generally
identifiable by use of the words "believes," "may," "plans," "will,"
"anticipates," "intends," "budgets," "could," "estimates," "expects,"
"forecasts," "projects" and similar expressions, and the negative of such
expressions. Forward-looking statements in this news release include
statements about include statements about the quantum and timing of Tekmira's
expected payments related to the settlement agreement and new licensing
agreement with Alnylam; statements about Tekmira's cash runway extending into
2015 and estimated cash and cash equivalents at the end of 2013; Tekmira's
plans to advance multiple products into human clinical trials; expected timing
of initiation of a Phase 2 clinical trial for TKM-PLK1; the development of
other product candidates in Tekmira's pipeline, including the expected timing
for the nomination of Tekmira's next product candidate; anticipated royalty
payments based on sales of Marqibo; the modification request to the existing
TKM-Ebola contract with the DoD to integrate recent advancements in LNP
formulation and manufacturing technology, including anticipated effects on the
value of the contract; expected timing of the completion and submission of the
LNP formulation work to the FDA and the initiation of a new Phase 1 clinical
trial for TKM-Ebola; the quantum and timing of funding that may be provided to
Tekmira pursuant to the TKM-Ebola contract with the DoD; the quantum and
timing of future milestone royalty payments expected from the ALN-TTR02,
ALN-VSP, ALN-PCS and other LNP-enabled product development programs of
Alnylam; the timing of an ALN-TTR02 pivotal or Phase 3 clinical trial; the
timing and initiation of ALN-VSP clinical trials in China; milestones and
royalty payments from Alnylam's LNP-enabled products; Tekmira's expectations
of entering into a separate cross license agreement with AlCana, which
includes anticipated milestone and royalty payments and an expected agreement
for AlCana not to compete in the RNAi field for five years; statements about
Tekmira's Unlocked Nucleobase Analog (UNA) license with Marina, as well as
milestone and royalty payments thereon; statements with respect to revenue and
expense fluctuation and guidance; licenses from Alnylam for the discovery,
development and commercialization of RNAi products directed to thirteen gene
targets; expected royalty payments from commercial sales of Tekmira's product
development partners; and Tekmira's strategy, future operations, clinical
trials, prospects and the plans of management; RNAi (ribonucleic acid
interference) product development programs; estimates of the number of
clinical development programs to be undertaken by Tekmira and its product
development partners; selection of additional product candidates; timing of
release of clinical data; the effects of Tekmira's products on the treatment
of cancer, infectious disease, and other diseases; statements and details of
the TKM-PLK1 and TKM-Ebola Phase 1 human clinical trials; the quantum and
timing of potential funding; use of lipid nanoparticle technology by Tekmira's
licensees; Tekmira's expectations with respect to existing and future
agreements with third parties; and estimates of the length of time Tekmira's
business will be funded by its anticipated financial resources.

With respect to the forward-looking statements contained in this news release,
Tekmira has made numerous assumptions regarding, among other things: LNP's
status as a leading RNAi delivery technology; the effectiveness of Tekmira's
products as a treatment for cancer, infectious disease, or other diseases; the
developmental milestones and approvals required to trigger funding for
TKM-Ebola from the TMT program; results in preclinical models are indicative
of the potential effect in humans; Tekmira's research and development
capabilities and resources; FDA approval with respect to commencing clinical
trials; the timing and obtaining of regulatory approvals for Tekmira's
products; the timing and results of clinical data releases and use of LNP
technology by Tekmira's development partners and licensees; the time required
to complete research and product development activities; the timing and
quantum of payments to be received under contracts with Tekmira's partners
including Alnylam, Talon, the DoD, and others; Tekmira's financial position
and its ability to execute on its business strategy; and Tekmira's ability to
protect its intellectual property rights and not to infringe on the
intellectual property rights of others. While Tekmira considers these
assumptions to be reasonable, these assumptions are inherently subject to
significant business, economic, competitive, market and social uncertainties
and contingencies.

Additionally, there are known and unknown risk factors which could cause
Tekmira's actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements contained herein. Known risk factors
include, among others: expected payments related to the settlement and
licensing agreement between Tekmira and Alnylam may not be received in the
quantum and on the timing currently anticipated, or at all; payments received
from third parties may not be sufficient to fund Tekmira's continued business
plan as currently anticipated; TKM-PLK1 may never enter into Phase 2 clinical
trials; Tekmira may never receive milestones or royalty payments from Alnylam;
Tekmira may not receive any additional non-exclusive licenses from Alnylam;
the possibility that Tekmira does not enter into a separate cross license
agreement with AlCana on the terms currently anticipated, or at all; Tekmira's
ability to obtain and protect intellectual property rights, and operate
without infringing on the intellectual property rights of others; Tekmira's
research and development capabilities and resources will not meet current or
expected demand; Tekmira's development partners and licensees conducting
clinical trial, development programs and joint venture strategic alliances
will not result in expected results on a timely basis, or at all; anticipated
payments under contracts with Tekmira's collaborative partners may not be
received by Tekmira on a timely basis, or at all, or in the quantum expected
by Tekmira; Tekmira's products may not prove to be effective in the treatment
of cancer and infectious disease or other diseases; the possibility that other
organizations have made advancements in RNAi delivery technology that Tekmira
is not aware of; the FDA will not approve the commencement of Tekmira's
planned clinical trials or approve the use of Tekmira's products and
generally, difficulties or delays in the progress, timing and results of
clinical trials; the FDA may determine that the design and planned analysis of
Tekmira's clinical trials do not adequately address the trial objectives in
support of Tekmira's regulatory submissions; future operating results are
uncertain and likely to fluctuate; competition from other pharmaceutical or
biotechnology companies; Tekmira's ability to raise additional financing
required to fund further research and development, clinical studies, and
obtain regulatory approvals, on commercially acceptable terms or at all;
economic and capital market conditions; a Phase 3 or pivotal trial for
ALN-TTR02 may not start as currently anticipated, or at all; clinical trials
for ALN-VSP may not commence as anticipated, or at all; anticipated payments
under contracts with Tekmira's collaborative partners including the U.S.
Government, Alnylam, and Talon will not be received by Tekmira on a timely
basis, or at all, or in the quantum expected by Tekmira; the U.S. Government
may reduce or cancel certain defense spending, including Tekmira's contract to
develop TKM-Ebola; FDA may decide that TKM-Ebola "Animal Rule" data is
insufficient for approval and require additional pre-clinical, clinical or
other studies, refuse to approve TKM-Ebola, or place restrictions on our
ability to commercialize TKM-Ebola; the release of data from the TKM-Ebola and
TKM-PLK1 Phase 1 human clinical trials may not occur in the expected
timeframe, or at all; the DoD may not accept the modification request to the
existing TKM-Ebola to integrate recent advancements in LNP formulation and
manufacturing technology; we may not complete the work necessary for the
submission of the new LNP formulation to the FDA in the anticipated timeframe,
or at all; we may not initiate a new TKM-Ebola Phase 1 clinical trial in the
anticipated timeframe, or at all; UNAs may not have the effect of increasing
stability or reducing off-target effects when incorporated into RNAi drugs;
Tekmira may never develop a commercially viable product that uses UNA
technology, or at all; pre-clinical and clinical trials may be more costly or
take longer to complete than anticipated; pre-clinical or clinical trials may
not generate results that warrant future development of the tested drug
candidate; Tekmira's products may not prove to be effective in the treatment
of cancer or infectious disease or other diseases; Tekmira may become subject
to product liability or other legal claims for which Tekmira has made no
accrual in its financial statements; Tekmira's cash runway may not extend as
far as anticipated, and may be substantially less than required to continue
current operations; and the possibility that Tekmira has not sufficiently
budgeted for expenditures necessary to carry out planned activities.

A more complete discussion of the risks and uncertainties facing Tekmira
appears in Tekmira's annual report on Form 20-F for the year ended December
31, 2012 (Annual Report), which is available at www.sedar.com or at
www.sec.gov/edgar.shtml. All forward-looking statements herein are qualified
in their entirety by this cautionary statement, and Tekmira disclaims any
obligation to revise or update any such forward-looking statements or to
publicly announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future results, events or developments,
except as required by law.

Marqibo is a U.S. registered trademark of Talon Therapeutics, Inc.

CONTACT: Investors
         Jodi Regts
         Director, Investor Relations
         Phone: 604-419-3234
         Email: jregts@tekmirapharm.com
        
         Media
         David Ryan
         Longview Communications Inc.
         Phone: 416-649-8007
         Email: dryan@longviewcomms.ca

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