Company to Hold Conference Call at 4:30 p.m. Eastern Today
SEATTLE, WA, March 6, 2012 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY) today
reported financial results for the year and quarter ending December 31,
2011.
Net loss from operations for the year ended December 31, 2011 was $24.7
million, compared with $19.5 million for the year ended December 31,
2010. The increase in net loss from operations resulted from an
increase in research and development expenses to $17.9 million from
$11.6 million, offset by a decrease in general and administrative
expenses to $6.9 million from $7.9 million. The increase in research
and development expenses in 2011 compared to 2010 was primarily the
result of increased development activity for Oncothyreon's product
candidates, PX-866 and ONT-10, and the upfront payment related to the
license for ONT-701. The decrease in general and administrative
expenses was primarily the result of lower legal, accounting and
consulting expenses related to regulatory compliance.
Net loss for the year ended December 31, 2011 was $42.7 million, or
$1.12 per basic and diluted share, compared with net loss of $15.6
million, or $0.58 per basic and diluted share for the year ended
December 31, 2010. The increase in net loss was primarily due to $17.6
million in non-cash expense from the change in fair value of warrant
liability for the year ended December 31, 2011 versus $3.0 million in
non-cash income for the year ended December 31, 2010, and an increase
in operating expenses to $24.8 million in 2011 from $19.5 million in
2010.
Net loss from operations for the quarter ended December 31, 2011 was
$6.6 million compared with $5.0 million for the quarter ended December
31, 2010. The increase in net loss from operations resulted from an
increase in research and development expenses to $4.2 million from $3.5
million and an increase in general and administrative expenses to $2.4
million from $1.5 million. The increase in research and development
expenses in the 2011 fourth quarter compared to the 2010 fourth quarter
was primarily the result of increased development activity for
Oncothyreon's product candidates, PX-866 and ONT-10. The increase in
general and administrative expenses was primarily the result of
non-cash stock based compensation related to the change in valuation of
restricted share units.
Net loss for the quarter ended December 31, 2011 was $11.5 million, or
$0.27 per basic and diluted share, compared with net loss of $6.2
million or $0.20 per basic and diluted share for the comparable period
in 2010. The increase in net loss was primarily the result of $4.8
million in non-cash expense from the change in fair value of warrant
liability for the quarter ended December 31, 2011 versus $1.7 million
in non-cash expense for the quarter ended December 31, 2010, and an
increase in operating expenses to $6.6 million in the 2011 fourth
quarter from $5.0 million in the 2010 fourth quarter.
As of December 31, 2011, Oncothyreon's cash, cash equivalents and
investments were $66.4 million, compared to $28.9 million at the end of
2010, an increase of $37.5 million, or 129.8%. The increase was
primarily attributable to the closing of an underwritten public
offering of 11,500,000 shares of common stock completed on May 4, 2011
for net proceeds of $43.1 million, $9.0 million in net proceeds
received from sale of common stock pursuant to Oncothyreon's equity
line financing facility, $4.8 million received from a term loan with
General Electric Capital Corporation and approximately $1.9 million
received from warrant exercises. These proceeds were offset by $21.1
million cash used in operations and capital expenditures in 2011.
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.
Expenses in 2012 are expected to be higher when compared to 2011,
primarily as a result of the more advanced clinical development of
PX-866 and the Phase 1 clinical trial of ONT-10. Oncothyreon currently
expects cash used in operations in 2012 to be between approximately
$30.0 and approximately $33.0 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
Management will discuss 2011 financial results and provide a review of
its pipeline of products in development during a conference call
beginning at 1:30 p.m. PT/ 4:30 p.m. ET today, March 6, 2012. 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 the 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 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
our expectations regarding future expenses, clinical development
activities 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
costs and expenses of developing our product candidates, the adequacy
of financing and cash, cash equivalents and investments, changes in
general accounting policies, 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 www.sec.gov and on SEDAR at www.sedar.com.
ONCOTHYREON INC. 2601 Fourth Avenue, Suite 500, Seattle, WA 98121
Tel: (206) 801-2100 Fax: (206) 801-2101
http://www.oncothyreon.com
ONCOTHYREON INC.
Condensed Consolidated Statement of Operations Data
(in thousands except share and per share amounts)
(Unaudited)
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Three Months
ended December
31,
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Years
ended December
31,
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2011
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2010
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2011
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2010
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Revenue
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Revenue from collaborative and license agreements
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$
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-
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$
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5
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$
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145
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$
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18
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Operating expenses
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Research and development
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4,151
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3,452
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17,915
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11,601
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General and administrative
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2,407
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1,545
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6,929
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7,901
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Total operating expenses
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6,558
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4,997
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24,844
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19,502
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Loss from operations
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(6,558)
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(4,992)
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(24,699)
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(19,484)
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Other income (expense)
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Investment and other income (expense), net
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15
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536
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305
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636
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Interest expense
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(178)
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-
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(631)
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-
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Change in fair value of warrant liability
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(4,783)
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(1,698)
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(17,631)
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3,030
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Total other income (expense), net
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(4,946)
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(1,162)
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(17,957)
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3,666
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Loss before income taxes
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(11,504)
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(6,154)
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(42,656)
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(15,818)
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Income tax benefit
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-
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-
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-
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200
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Net loss
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$
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(11,504)
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$
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(6,154)
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$
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(42,656)
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$
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(15,618)
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Net loss per share - basic
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$
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(0.27)
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$
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(0.20)
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$
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(1.12)
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$
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(0.58)
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Net loss per share - diluted
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$
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(0.27)
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$
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(0.20)
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$
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(1.12)
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$
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(0.58)
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Shares used to compute basic loss per share
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43,154,697
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30,062,101
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38,197,666
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26,888,588
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Shares used to compute diluted loss per share
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43,154,697
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30,062,101
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38,197,666
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26,888,588
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ONCOTHYREON INC.
Consolidated Balance Sheet data
(in thousands except share amounts)
(unaudited)
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As of December 31,
2011
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2010
|
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Cash, cash equivalents and investments
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$
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66,407
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$
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28,877
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Total assets
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$
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71,351
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$
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34,445
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Long term liabilities
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$
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33,236
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$
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13,727
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Stockholder's equity
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$
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33,433
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$
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18,857
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Common shares outstanding
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43,613,107
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30,088,628
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SOURCE Oncothyreon Inc.
