OncoGenex Pharmaceuticals to Raise $9.5 Million Through Sale of Common Stock

    BOTHELL, WA and VANCOUVER, July 20 /CNW/ - OncoGenex Pharmaceuticals,
Inc. (NASDAQ: OGXI) announced today it has entered into purchase agreements
with certain institutional investors for the sale of 475,000 shares of its
common stock at a price of $20 per share through a registered direct offering.
The transaction is expected to provide gross proceeds of $9.5 million to
OncoGenex before deducting costs associated with the offering, and will be
used primarily for manufacturing activities and general corporate purposes.
The parties expect to close the transaction on or about July 24, 2009.
    The shares of common stock offered by OncoGenex in this transaction will
be issued pursuant to the Company's existing shelf registration statement on
Form S-3, which was declared effective by the Securities and Exchange
Commission on July 17, 2009. There was no placement agent in this transaction.
    "These funds strengthen our balance sheet, substantially extending our
runway and assisting our advancement toward our primary objective to secure a
co-development and commercialization partner for our OGX-011 program," said
Scott Cormack, President and CEO of OncoGenex. "It also allows us to continue
our planned manufacturing readiness activities to ensure that our phase 3
trials initiate as planned once a partnership for OGX-011 is secured."

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any state or jurisdiction.

    About OncoGenex Pharmaceuticals

    OncoGenex is a biopharmaceutical company committed to the development and
commercialization of new therapies that address unmet needs in the treatment
of cancer. OncoGenex has a deep oncology pipeline, with each product candidate
having a distinct mechanism of action and representing a unique opportunity
for cancer drug development. OGX-011, the lead candidate that has completed
five Phase 2 clinical trials in prostate, lung and breast cancers, is designed
to inhibit the production of a specific protein associated with treatment
resistance; OGX-427 is in Phase 1 clinical development; SN2310 has completed
the Phase 1 clinical trial; and CSP-9222 and OGX-225 are currently in
pre-clinical development.
    OGX-011, OGX-427 and OGX-225 utilize second-generation antisense
technology, licensed from Isis Pharmaceuticals (NASDAQ: ISIS), to effectively
target and inhibit production of specific proteins in tumor cells. OncoGenex
and Isis partnered in the successful discovery of OGX-011, OGX-427 and OGX-225
and with respect to OGX-011, in its initial development. In 2008, OncoGenex
and Isis amended their OGX-011 agreement to provide OncoGenex with sole rights
to OGX-011 and sole responsibility for development and related costs and
partnering decisions, subject to financial obligations to Isis. OncoGenex is
also solely responsible for development and related costs and partnering
decisions regarding OGX-427 and OGX-225. Key intellectual property related to
OGX-011, OGX-427 and OGX-225 were discovered by the University of British
Columbia and the Vancouver Prostate Centre, and were exclusively licensed to
OncoGenex.
    More information about OncoGenex is available at www.oncogenex.com.

    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 regarding the proposed
financing and the company's manufacturing readiness, prospects for securing a
co-development and commercialization partner and planned phase 3 trials. Such
forward-looking statements are subject to risks and uncertainties, including,
among others: the satisfaction of certain closing conditions in respect of the
financing; 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 2008. 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.

For further information: OncoGenex Contact: Scott Cormack, President &
CEO, [phone], [e-mail]; Media and Investor Contact: Jason
Spark, Porter Novelli Life Sciences, [phone],
[e-mail]