Oncothyreon Announces $10 Million Registered Direct Offering to BVF Partners L.P.

 Oncothyreon Announces $10 Million Registered Direct Offering to BVF Partners
                                     L.P.

PR Newswire

SEATTLE, May 30, 2013

SEATTLE, May 30, 2013 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY) today
announced that it has agreed to sell 5,000,000 shares of its common stock and
warrants to purchase 5,000,000 shares of common stock for gross proceeds of
approximately $10million. The common stock and warrants are being sold in
units, with each unit consisting of one share of common stock and a warrant to
purchase one share of common stock at an exercise price of $5.00 per share.
Each unit is being sold at a price of $2.00. The warrants will be exercisable
at any time on or after the six-month and one-day anniversary of the issuance
date of the warrants and until the fifth anniversary of the date the warrants
first became exercisable.

The shares were offered and are  being sold to Biotechnology Value Fund,  L.P. 
and other affiliates  of BVF  Partners L.P.  in a  registered direct  offering 
conducted without an underwriter or placement agent. The net proceeds from the
offering, after deducting estimated  offering expenses, will be  approximately 
$9.8 million. The offering is expected to close on or about June 4, 2013.

Oncothyreon intends to use the net proceeds of the offering to fund a  portion 
of  the  $10   million  upfront   fee  payable  under   its  development   and 
commercialization  agreement  with  Array  BioPharma  Inc.  and  for   general 
corporate purposes,  including  research  and  product  development,  such  as 
funding pre-clinical studies and clinical trials and otherwise moving  product 
candidates towards commercialization and the possible acquisition or licensing
of new product candidates or technology.

The securities were offered by means of a prospectus supplement dated May  30, 
2013 and accompanying prospectus dated January 10, 2012, forming a part of the
Company's  effective  shelf  registration   statement  (File  #   333-178726). 
Oncothyreon has filed a registration  statement (including a prospectus)  with 
the Securities and Exchange Commission, or SEC, for the offering to which this
communication relates. Before you  invest, you should  read the prospectus  in 
that registration statement and other documents Oncothyreon has filed with the
SEC for more complete information about Oncothyreon and this offering. You may
get these  documents  for free  by  visiting EDGAR  on  the SEC  web  site  at 
www.sec.gov.  Alternatively,  Oncothyreon  will   arrange  to  send  you   the 
prospectus if you request it by calling Oncothyreon at 206-801-2100.

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 the offering announced
today and the use of proceeds thereof.

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  those predicting  the timing,  duration 
and results of clinical trials, the timing and results of regulatory  reviews, 
the safety and  efficacy of our  product candidates, and  the indications  for 
which our product  candidates might be  developed. There can  be no  guarantee 
that the results of preclinical studies or clinical trials will be  predictive 
of either safety or efficacy  in future clinical trials. 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.

SOURCE Oncothyreon Inc.

Contact:

Investor and Media Relations Contact:

Julie Rathbun
Rathbun Communications
206-769-9219
ir@oncothyreon.com
 
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