Oncothyreon Reports Third Quarter 2013 Financial Results

           Oncothyreon Reports Third Quarter 2013 Financial Results

PR Newswire

SEATTLE, WA, Nov. 12, 2013

Company to Hold Conference Call at 4:30 p.m. EST Today

SEATTLE, WA,  Nov. 12,  2013 /PRNewswire/  - Oncothyreon  Inc. (NASDAQ:  ONTY) 
today reported financial results  for the third  quarter ending September  30, 
2013.

Loss from operations was $7.6 million for the three months ended September 30,
2013 compared  with  $7.7 million  for  the  comparable period  in  2012,  and 
increased to  $33.6 million  for  the nine  months  ended September  30,  2013 
compared with $21.5 million for the comparable period in 2012. The increase in
loss from operations for the nine months ended September 30, 2013 compared  to 
the prior  year  period  was  primarily  due  to  increases  in  research  and 
development expenses, which included a $10.0 million upfront payment to  Array 
BioPharma Inc.  (Array) upon  execution of  the collaboration  agreement  with 
Array in May 2013. In addition, the increase in loss from operations was also
due to increases in general and administrative expenses.

Net loss for the three  months ended September 30,  2013 was $7.7 million,  or 
$0.12 loss  per  basic and  diluted  share, compared  with  net loss  of  $8.6 
million, or $0.15 loss per basic and diluted share, for the comparable  period 
in 2012. Net  loss for  the nine  months ended  September 30,  2013 was  $32.4 
million, or $0.54 loss per basic and  diluted share, compared with a net  loss 
of $7.7 million, or $0.15 loss per basic and $0.41 loss per diluted share, for
the comparable period in 2012. The decrease  in net loss for the three  months 
ended September  30, 2013  compared to  the prior  year period  was  primarily 
attributable to the  difference in  the change in  the fair  value of  warrant 
liability. The increase in  net loss for the  nine months ended September  30, 
2013 compared to the prior year  period was attributable to the difference  in 
the change  in  the fair  value  of the  warrant  liability and  increases  in 
research and development expenses, primarily the $10.0 million upfront payment
to Array and increased  activity related to  the development of  Oncothyreon's 
product candidates  ONT-10 and  ONT-380. The  increase in  loss was  also  the 
result of increased general and administrative expenses.

As of September 30, 2013, Oncothyreon's cash, cash equivalents and investments
were $71.9 million, compared to $83.8 million at December 31, 2012, a decrease
of $11.9 million, or 14.2 percent. The decrease was primarily attributable  to 
$30.8 million  of  cash  used  in operations  during  the  nine  months  ended 
September 30, 2013. This decrease was offset in part by net proceeds from the
sale of  5,791,697 shares  of Oncothyreon  common stock  through the  "at  the 
market" equity  offering  program  with  Cowen  and  Company,  LLC.  Of  these 
proceeds, $9.8 million were received by September 30, 2013 and are included in
the $71.9 million total, while $1.4  million were pending settlement and  were 
received in October 2013. In addition, Oncothyreon closed a registered direct
offering of  5,000,000 shares  of  Oncothyreon common  stock and  warrants  to 
purchase 5,000,000 shares  of common stock  in June 2013  for net proceeds  of 
approximately $9.9 million.

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.

Exclusive of the  one-time, upfront  payment to  Array, Oncothyreon  currently 
expects operating expenses  in 2013 to  be similar  to 2012 and  cash used  in 
operations in  2013 to  be approximately  $28  to $30  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, November  12, 2013 at  4:30 
p.m. Eastern time (1:30 p.m. Pacific  time) to discuss its third quarter  2013 
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  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 product  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.
                Condensed Consolidated Statements of Operations
               (In thousands except share and per share amounts)
                                  (Unaudited)
                                                         
                        Three months ended             Nine months ended
                           September30,                   September30,
                        2013         2012         2013         2012
                                                                  
Expenses                                                           
   Research and    $      5,517  $     5,783  $     27,374       16,348
    development
   General and            2,085        1,902       6,266        5,181
    administrative
 Total                  7,602        7,685      33,640      21,529
    operating
    expenses
 Loss from            (7,602)      (7,685)    (33,640)     (21,529)
    operations
Other income                                                       
(expense)
   Investment and           66           32         118        (167)
    other income
    (expense), net
   Interest                   —            —           —        (309)
    expense
   Change in fair         (174)        (972)        1,126       14,336
    value of
    warrant
    liability
 Total other            (108)        (940)        1,244       13,860
    income
    (expense), net
Net loss            $    (7,710)  $    (8,625)  $   (32,396)  $    (7,669)
Net loss per share  $     (0.12)  $     (0.15)  $     (0.54)  $     (0.15)
- basic
Net loss per share  $     (0.12)  $     (0.15)  $     (0.54)  $     (0.41)
- diluted
Shares used to        63,886,874   57,186,749   59,962,328   52,564,914
compute basic net
loss per share
Shares used to        63,886,874   57,186,749   59,962,328   53,899,276
compute diluted
net loss per
share

                               ONCOTHYREON INC.
                       Consolidated Balance Sheet Data
                     (In thousands except share amounts)
                                 (Unaudited)
                                                                    
                                                  As of 
                                   September 30,    December 31, 2012 
                                          2013
Cash, cash equivalents and       $            71,916  $              83,756
investments
                                                     
Total assets                     $            79,231   $              89,435
                                                     
Long term liabilities            $             2,604   $               4,041
                                                     
Stockholders' equity             $            72,506   $              82,323
                                                     
Common shares outstanding                68,060,844             57,216,237
                                                                    
                                                                    





SOURCE Oncothyreon Inc.

Contact:

Investor and Media Relations Contact:

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