Full Press Release Details
OncoGenex Pharmaceuticals, Inc. Reports Financial Results for Fourth Quarter and Year
Provides Update on Custirsen Clinical Development Program
BOTHELL, WA., and VANCOUVER, British Columbia, Mar. 10, 2011 OncoGenex Pharmaceuticals, Inc.
(NASDAQ: OGXI) today announced its fourth quarter and year end 2010 financial results, reviewed
updates to the Company s development programs and provided an outlook for 2011.
Over the course of the last twelve months we ve delivered on our corporate objectives to initiate
two Phase 3 clinical trials evaluating custirsen in castrate-resistant prostate cancer and a
randomized Phase 2 clinical trial evaluating OGX-427 in chemo-therapy na ve advanced prostate
cancer, creating a solid foundation for future success, says Scott Cormack, president and CEO of
OncoGenex. We ve entered 2011 with a diverse portfolio of novel cancer therapies, and the
financial strength to enable us to achieve our objectives over the next several years.
2010 Accomplishments and Clinical Updates:
Revenue for the fourth quarter and year ended December 31, 2010 decreased to $2.3 million and $13.6
million, respectively, compared with $25.5 million in both the fourth quarter and year ended
December 31, 2009. The decrease in 2010 as compared to 2009 was due to lower revenue earned through
our strategic collaboration with Teva for the development of custirsen that was entered into in
December 2009. At December 31, 2010, $21.6 million of the upfront payment received from Teva in
December 2009 was included in our Balance Sheet as Deferred Collaboration Revenue, which we are
amortizing over the expected performance period of our deliverables under the agreement. We
currently expect this performance period to end in the fourth quarter of 2012.
Total operating expenses for the fourth quarter and year ended December 31, 2010 were $4.2 million
and $28.4 million, respectively, compared with $18.7 million and $28.1 million in the fourth
quarter and year ended 2009. The decrease in operating expenses for the fourth quarter of 2010 was
primarily due to 2009 milestones owed to Isis and the University of British Columbia resulting from
the Collaboration Agreement with Teva. This decrease in milestone expense was offset by higher
manufacturing costs, employee costs and clinical trial costs associated with the custirsen Phase 3
Net loss for the fourth quarter and year ended December 31, 2010 increased to $2.8 million, or
$0.31 per diluted common share, and $12.6 million, or $1.79 per diluted common share, respectively,
compared to net income in the fourth quarter of 2009 of $3.9 million, or $0.64 per diluted common
share, and a net loss of $5.5 million, or $0.95 per diluted common share, in the year ended 2009.
The increase in net loss was primarily due to lower revenue recognized in the fourth quarter of
2009 in connection with the Collaboration Agreement with Teva.
We had $85.1 million in cash, cash equivalents and short-term investments as of December 31, 2010,
compared to $64.6 million as of December 31, 2009.
2011 Outlook and Financial Guidance
In addition to our continued efforts to drive accrual for the ongoing custirsen and OGX-427
clinical trials, we have the following key objectives for 2011:
Based on our current forecast, and excluding any proceeds from potential new partnerships or
financings we expect that our existing capital resources will support our operations into 2014. As
at March 8, 2011, we had 9,714,501 shares outstanding.
Conference Call Details
OncoGenex will host a conference call at 4:30 p.m. Eastern Time today, Thursday, March 10, 2011, to
provide a business update and discuss the fourth quarter and year ended 2010 results. A live event
will be available through the Events and Presentations Web page found in the Investor Relations
section of the OncoGenex Web site 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
webcast replay will be available approximately two hours after the call and will be archived at the
same Web location for 90 days.
About OncoGenex Pharmaceuticals
OncoGenex is a biopharmaceutical company committed to the development and commercialization of new
cancer 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. (NASDAQ: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. The
companies plan to begin Phase 3 development of custirsen in first-line treatment of advanced,
unresectable non-small cell lung cancer in 2011. OGX-427 is in Phase 2 clinical development; SN2310
has completed a Phase 1 clinical trial; and CSP-9222 and OGX-225 are currently in pre-clinical
More information about OncoGenex is available at www.oncogenex.com.
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, the timing and costs of these
activities, the potential benefits of our product candidates, our key 2011 objectives, and our
anticipated future expenses, capital and sufficiency of capital. 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, uncertainties regarding our future operating
results, the risk that our product candidates will not obtain the requisite regulatory approvals to
commercialize or that the future sales of our product candidates may be less than expected, and the
risk factors set forth in the Company s filings with the Securities and Exchange Commission,
including the Company s Annual Report on Form 10-K for fiscal year 2010. 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.
Condensed Statements of Operations
(in thousands except share and per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Collaboration revenue | $ | 2,334 | $ | 25,539 | $ | 13,616 | $ | 25,539 | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | $ | 2,301 | $ | 13,908 | $ | 18,483 | $ | 20,209 | ||||||||
| General and administrative | 1,948 | 1,291 | 5,840 | 3,961 | ||||||||||||
| Restructuring expense | 3,457 | 4,038 | 3,951 | |||||||||||||
| Total operating expenses | 4,249 | 18,656 | 28,361 | 28,121 | ||||||||||||
| Other income (expense) | (885 | ) | (3 | ) | (839 | ) | 117 | |||||||||
| Loss (income) for the period before taxes | 2,800 | (6,880 | ) | 15,584 | 2,465 | |||||||||||
| Income tax expense (recovery) | 2,999 | (3,000 | ) | 3,011 | ||||||||||||
| Net loss (income) | 2,800 | (3,881 | ) | 12,584 | 5,476 | |||||||||||
| Basic and diluted loss (income) per common shares | $ | 0.31 | $ | (0.64 | ) | $ | 1.79 | $ | 0.95 | |||||||
| Weighted average number of common shares | 8,914,287 | 6,057,476 | 7,030,903 | 5,766,850 |
Condensed Balance Sheets
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Assets: | ||||||||
| Cash, cash equivalents and short term investments | $ | 85,107 | $ | 64,568 | ||||
| Amounts receivable | 1,224 | 3,109 | ||||||
| Prepaid and other current assets | 2,987 | 722 | ||||||
| Property, equipment and other assets | 600 | 581 | ||||||
| Total assets | $ | 89,918 | $ | 68,980 | ||||
| Liabilities and stockholders equity: | ||||||||
| Accounts payable and accrued liabilities | $ | 893 | $ | 14,453 | ||||
| Deferred Collaboration Revenue | 10,000 | 10,000 | ||||||
| Current portion of long term obligations | 1,314 | 1,328 | ||||||
| Warrant liability | 15,269 | |||||||
| Long term liabilities | 18,317 | 20,240 | ||||||
| Stockholders equity | $ | 44,125 | $ | 22,959 | ||||
| Total liabilities and stockholders equity | $ | 89,918 | $ | 68,980 |