OncoGenex Pharmaceuticals, Inc. Reports Financial Results for Fourth Quarter and Year End 2013

 OncoGenex Pharmaceuticals, Inc. Reports Financial Results for Fourth Quarter
                              and Year End 2013

Conference call to be held on Tuesday, March 11, 2014 at 4:30 p.m. Eastern
Time

PR Newswire

BOTHELL, Wash. and VANCOUVER, British Columbia, March 11, 2014

BOTHELL, Wash. and VANCOUVER, British Columbia, March 11, 2014 /PRNewswire/
--OncoGenex Pharmaceuticals, Inc. (NASDAQ: OGXI) today provided a summary of
clinical developments and anticipated near-term milestones and announced
fourth quarter and year end 2013 financial results.

Clinical Developments and Anticipated Near-term Milestones

  oCustirsen

       oThe SYNERGY Phase 3 trial is designed to evaluate a survival benefit
         for custirsen, in combination with first-line docetaxel chemotherapy,
         in men with metastatic castrate-resistant prostate cancer, or CRPC.
         OncoGenex recently announced that the pre-specified number of events
         required for final analysis of the Phase 3 SYNERGY trial were
         reached. Overall survival results will remain blinded until all study
         data have been thoroughly reviewed and prepared for final analysis,
         and final results are expected by mid-year 2014.
       oThe AFFINITY Phase 3 trial is designed to evaluate a survival benefit
         for custirsen in combination with cabazitaxel treatment as
         second-line chemotherapy in patients with CRPC. Enrollment of
         approximately 630 patients is ongoing and expected to be completed by
         the end of 2014.
       oThe ENSPIRIT Phase 3 trial is evaluating a survival benefit for
         custirsen in combination with docetaxel treatment as second-line
         chemotherapy in patients with non-small cell lung cancer (NSCLC).
         Enrollment of approximately 1,100 patients is ongoing.

  oApatorsen

       oOncoGenex and collaborating investigators are in the process of
         conducting seven randomized Phase 2 clinical trials to evaluate
         apatorsen's ability to inhibit heat shock protein 27 (Hsp27) and
         improve treatment outcomes in bladder, lung, pancreatic and prostate
         cancer patients. Patient enrollment in the Borealis-1™ Phase 2 trial
         of apatorsen in combination with gemcitabine and cisplatin in
         patients with metastatic bladder cancer was fully enrolled in July
         2013 and data are expected to be available in the second half of
         2014.

Financial Update and Results

  oRevenue for the fourth quarter and year ended December 31, 2013 was $8.6
    million and $29.9 million, respectively. This compares with $9.8 million
    and $20.1 million, respectively, in the same periods in 2012. Revenue
    earned in 2013 consists of reimbursable clinical trial, manufacturing and
    preclinical costs incurred by OncoGenex under the Amended Clinical
    Development Plan with Teva.
  oThe Company has fulfilled its obligation of funding $30.0 million towards
    the development of custirsen. 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, 2013 were $15.6 million and $65.2 million, respectively, compared with
    $16.0 million and $46.1 million, respectively, in the same periods in
    2012. The increase in 2013 as compared to 2012 was predominantly the
    result of higher clinical trial expenses associated with patient
    enrollment and treatment in the AFFINITY and Borealis-1 trials, increased
    costs related to our investigator-sponsored apatorsen trials, toxicology
    expenses related to apatorsen and OGX-225 and increased employee expenses,
    including stock-based compensation, due to an increase in the average
    number of employees to support our clinical development activities.
  oNet loss for the fourth quarter and year ended December 31, 2013 was $6.7
    million, or $0.45 per diluted common share, and $31.8 million, or $2.17
    per diluted common share, respectively. Comparatively, net 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.
  oThe company had $39.2 million in cash, cash equivalents and short-term
    investments as of December 31, 2013, compared to $75.4 million as of
    December 31, 2012.
  oBased on current expectations, the company believes its capital resources
    as of December 31, 2013 will be sufficient to fund its currently-planned
    operations beyond the first quarter of 2015, and through:

       othe expected release of final survival results from the SYNERGY trial
         by mid-2014;
       othe expected release of final survival results from the Borealis-1
         trial in the second-half of 2014; and
       othe completion of enrollment in the AFFINITY and Spruce trials by the
         end of 2014.

  oAt March 11, 2014, OncoGenex had 14,718,610 shares outstanding.

Consolidated Statements of Loss
(In thousands, except per share and share data)
                      Three months ended December   Twelve months ended
                      31,                           December 31,
                      2013           2012           2013          2012
Collaboration         $        $        $        $     
revenue                  8,604      9,780                
                                                    29,882       20,095
Operating expenses:
 Research and        13,195         15,645         55,317        39,948
development
 General and         2,446          2,042          9,892         7,791
administrative
 Restructuring       -              (1,657)        -             (1,657)
gain
 Total operating   15,641         16,030         65,209        46,082
expenses
Loss from             (7,037)        (6,250)        (35,327)      (25,987)
operations
 Other income        359            2,147          3,478         4,889
Net loss              $        $        $        $     
                        (6,678)     (4,103)     (31,849)    (21,098)
Basic and diluted     $        $        $        $     
net loss per share       (0.45)     (0.28)               
                                                    (2.17)       (1.56)
Weighted average
number of basic and   14,707,558     14,656,793     14,683,389    13,522,723
diluted common
shares
Consolidated Balance Sheets
(In thousands)
                                                    December     December
                                                    31,          31,
                                                    2013          2012
Assets:
 Cash, cash                                        $        $     
equivalents, short                                               
term investments                                    39,536       75,697
and restricted cash
 Interest                                          218           327
receivable
 Amounts                                           8,657         714
receivable
 Prepaid expenses
and other current                                   5,770         3,755
assets
 Property,
equipment and other                                 1,508         1,523
assets
                                                    $        $     
Total assets                                                     
                                                    55,689       82,016
Liabilities and
stockholders'
equity:
 Accounts payable                                  $        $     
and accrued                                                       
liabilities                                         13,628       7,050
 Current portion
of long-term                                        1,092         1,084
obligations
 Warrant liability                                 214           3,422
 Long term                                         3,544         4,253
liabilities
 Stockholders'                                     37,211        66,207
equity
Total liabilities                                   $        $     
and stockholders'                                                
equity                                              55,689       82,016



Conference Call Details
OncoGenex will host a conference call at 4:30 p.m. Eastern Time today,
Tuesday, March 11, 2014, to provide a business update and discuss the fourth
quarter and year end 2013 results. A live event will be available on the
Investor Relations section of the OncoGenex website 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. OncoGenex and Teva 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. Apatorsen is
currently being evaluated in seven randomized Phase 2 trials for a variety of
cancers and OGX-225 is currently in pre-clinical development. More information
is available at www.OncoGenex.com and at the company's Twitter account:
https://twitter.com/OncoGenex_IR.

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.

SOURCE OncoGenex Pharmaceuticals, Inc.

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