BELLEVUE, WA, March 10 /PRNewswire-FirstCall/ - Oncothyreon Inc.
(Nasdaq: ONTY) (TSX: ONY) (the "Company") today reported financial results
for the year and quarter ended December 31, 2007. All results are in U.S.
dollars and prepared using U.S. GAAP.
Net loss for the year ended December 31, 2007, was $20.3 million or
$1.04 per basic and diluted share, compared with $36.4 million, or $2.38
per basic and diluted share in 2006. The substantial decrease in net loss
when compared with 2006 primarily reflects the charge of $24.9 million in
2006 related to the acquisition of ProlX Pharmaceuticals, Inc. General and
administrative expenses increased by $4.2 million for the year ended
December 31, 2007, compared with the year ended December 31, 2006,
primarily due to costs associated with the Company's reincorporation into
the United States and certain costs associated with a reduction in
administrative staff. Revenue from operations for the year ended December
31, 2007, was $3.8 million, compared to $4.0 million in the prior year.
Net loss for the quarter ended December 31, 2007, was $5.2 million or
$0.26 per basic and diluted share, compared with $27.1 million or $1.58 per
basic and diluted share for the comparable period in 2006. Revenue from
operations was $1.9 million, compared to $1.1 million for the same period
in 2006. Expenses for the quarter were $7.1 million, compared with $28.7
million for the comparable period in 2006, which included charges of $24.9
million relating to the October 2006 acquisition of ProlX.
As of December 31, 2007, Oncothyreon's cash, cash equivalents and
short-term investments were $24.2 million, compared to $28.4 million at the
end of 2006, a decrease of $4.2 million, or 14.8 percent. The net decrease
reflects operating expenditures of $22.8 million in 2007 offset by $15.8
million in cash received under the Company's collaborative and contract
manufacturing agreements. The decrease was also offset by the favorable
effect of exchange rate fluctuations on cash and cash equivalents of $1.7
million and short-term investments of $1.9 million.
Financial Guidance
Oncothyreon believes the following financial guidance to be correct as
of the date provided. The Company is providing this guidance as a
convenience to investors and assumes no obligation to update it.
For 2008, Oncothyreon expects expenses to increase over 2007 as a
result of increased manufacturing and process development activities for
Stimuvax(R) and more advanced clinical development activity for the
Company's small molecule drugs. The Company expects these expenses to be
partially offset by increased revenue related to the purchase of Stimuvax
clinical supplies by Merck KGaA. As a result, Oncothyreon anticipates that
operating cash requirements for 2008 will be between $17 million and $19
million. The Company estimates that it currently has sufficient cash
resources to last into the second quarter of 2009.
Business Update
Key achievements for Oncothyreon in 2007 included:
- Initiating a Phase 2 trial of PX-12 in patients with advanced
pancreatic cancer.
- Initiating the START trial, a Phase 3 trial of Stimuvax in patients
with Stage III non-small cell lung cancer, in partnership with
Merck KGaA.
- Successfully manufacturing Stimuvax vaccine and placebo for the START
trial.
- Filing an IND and initiating a Phase 1 trial of PX-478 in patients
with advanced solid tumors or lymphomas.
- Signing amended and restated collaboration and supply agreements with
Merck KGaA for Stimuvax, providing for new, near-term milestones, the
first of which was received in December 2007.
- Completing the reincorporation of Biomira into the United States as
Oncothyreon.
Conference Call and Webcast
Oncothyreon's management will discuss the Company's fourth quarter and
full year 2007 financial results as well as general business updates during
a conference call beginning at 1:30 p.m. PT/ 4:30 p.m. ET today, Monday,
March 10, 2008. To listen to a webcast of the discussion, visit
http://www.oncothyreon.com.
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
http://www.oncothyreon.com.
Forward-Looking Statements
In order to provide our investors with an understanding of our current
results and future prospects, this release may contain 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 expenses related to
manufacturing and process development activities and clinical development
activities, revenues resulting from Merck's purchase of Stimuvax supplies,
and the use and adequacy of cash resources.
Forward-looking statements involve risks and uncertainties related to
our business and the general economic environment, many beyond our control.
These risks, uncertainties and other factors could cause our actual results
to differ materially from those projected in forward-looking statements,
including the risks associated with the adequacy of financing and reserves
on hand, currency exchange rate fluctuations, changes in general accounting
policies, our ability to remediate an identified material weakness in our
internal controls, general economic factors, achievement of the results we
anticipate from our clinical trials with our products and our ability to
adequately obtain and protect our intellectual property rights. Although we
believe that the forward-looking statements contained herein are
reasonable, we can give no assurance that our expectations are correct. All
forward-looking statements are expressly qualified in their entirety by
this cautionary statement. For a detailed description of our risks and
uncertainties, you are encouraged to review the official corporate
documents filed with the securities regulators in the United States on U.S.
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 U.S.
EDGAR at http://www.sec.gov and on SEDAR at http://www.sedar.com.
Oncothyreon Inc.(1)
Consolidated Statements of Operations Data
(in thousands of U.S. dollars, except share and per share data)
(unaudited)
Three Months Ended Year Ended
December 31 December 31
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue
Contract research and
development............ $ 29 $ 1,028 $ 631 $ 3,678
Contract manufacturing.. 1,617 - 2,536 -
Licensing revenue from
collaborative
agreements............. 212 43 528 182
Licensing, royalties
and other revenue...... 80 38 103 119
--------- ---------- ---------- ----------
1,938 1,109 3,798 3,979
--------- ---------- ---------- ----------
Expenses
Research and
development............ 2,278 2,885 10,011 12,200
Manufacturing........... 1,396 - 2,564 -
General and
administrative......... 3,567 2,298 11,797 7,636
Marketing and business
development............ 26 134 565 587
Depreciation............ 84 56 246 247
In-process research and
development............ - 24,920 - 24,920
Investment and other
loss (income).......... (22) (373) 371 (916)
Interest expense........ 3 2 5 10
Change in fair value of
warrant liability...... (242) (1,238) (1,421) (3,849)
--------- ---------- ---------- ----------
(7,090) (28,684) (24,138) (40,835)
--------- ---------- ---------- ----------
Loss before income taxes.. (5,152) (27,575) (20,340) (36,856)
Income tax recovery
Current................. - 462 - 462
--------- ---------- ---------- ----------
Net loss.................. $ (5,152) $ (27,113) $ (20,340) $ (36,394)
--------- ---------- ---------- ----------
--------- ---------- ---------- ----------
Basic and diluted loss
per share................ $ (0.26) $ (1.58) $ (1.04) $ (2.38)
--------- ---------- ---------- ----------
--------- ---------- ---------- ----------
Weighted average number of
common shares outstanding
(in thousands)........... 19,486 17,133 19,486 15,317
--------- ---------- ---------- ----------
--------- ---------- ---------- ----------
Oncothyreon Inc.(1)
Consolidated Balance Sheets Data
(in thousands of U.S. dollars, except share data)
(unaudited)
December 31, December 31,
2007 2006
Cash, cash equivalents and short term
investments.................................. $ 24,186 $ 28,395
Total assets.................................. $ 36,218 $ 33,456
Total long-term liabilities................... $ 12,526 $ 2,328
Shareholders' equity.......................... $ 12,019 $ 27,435
Common shares outstanding..................... 19,485,889 19,485,889
(1) On December 10, 2007, Oncothyreon became the successor corporation to
Biomira Inc. by way of a plan of arrangement effected pursuant to
Canadian law. These financial statements reflect the historical
accounts of Biomira up to December 10, 2007, with the exception of
basic and diluted loss per share and common shares outstanding, which
have been recast to reflect the 6 for 1 common share exchange
effected by the plan of arrangement.
SOURCE Oncothyreon Inc.
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CONTACT:
Investor and Media Relations Contact: Julie
Rathbun, Rathbun Communications, (206) 769-9219,
ir@oncothyreon.com
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