Oncothyreon reports first quarter 2009 financial results

    SEATTLE, May 14 /CNW/ - Oncothyreon Inc. (NASDAQ:   ONTY) (TSX: ONY) (the
"Company") today reported a net loss of $2.5 million or $0.13 per basic and
diluted share for the quarter ended March 31, 2009, compared with a net loss
of $5.1 million or $0.26 per basic and diluted share for the comparable period
in 2008. The decrease in net loss is primarily the result of the transfer of
manufacturing activities for Stimuvax(R) to Merck KGaA in December 2008,
resulting in a decrease of combined research and development and manufacturing
expenses partly offset by a decrease in both contract manufacturing revenue
and licensing revenue from collaborative agreements.
    Total revenue was $4,000 in the first quarter of 2009, compared to $2.0
million for the same period in 2008. The decrease of $1.7 million in contract
manufacturing revenue is the result of the transfer of manufacturing of
Stimuvax to Merck KGaA in December 2008. The decrease of $0.3 million in
licensing revenue resulted from the recognition of all deferred revenue under
our agreements with Merck KGaA in December 2008, as the Company no longer has
any performance obligations under these agreements.
    Expenses for the quarter ended March 31, 2009, were $2.5 million,
compared with $7.1 million for the comparable period in 2008. Combined
research and development and manufacturing expenses decreased to $0.7 million
in the 2009 first quarter from $4.4 million in the 2008 first quarter,
primarily as the result of the cessation of manufacturing activities for
Stimuvax and the transfer of our Edmonton, Alberta facility to Merck KGaA.
General and administrative expenses decreased to $1.8 million in the 2009
first quarter from $2.7 million in the 2008 first quarter, primarily as a
result of expenses in 2008 which related to the Company's reincorporation in
the United States and of fewer personnel in 2009.
    As of March 31, 2009, Oncothyreon's cash and cash equivalents were $15.4
million, compared to $19.2 million at the end of 2008, a decrease of $3.8
million, or 19.8 percent. Major contributors to the net change included $2.1
million used in operations in the quarter and a decrease in accounts payable
and accrued liabilities of $1.7 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.
    Expenses in 2009 are expected to be substantially less than in 2008,
primarily as a result of transferring manufacturing and process development
activities for Stimuvax to Merck KGaA and of the previously announced plan to
restrict development activities to PX-478 and PX-866. Oncothyreon currently
expects cash used in operations in 2009 to be approximately $12 million. As a
result, Oncothyreon estimates that the Company's existing cash, together with
a milestone payment from Merck KGaA expected at year end, will be sufficient
to fund operations for at least the next twelve (12) months.

    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 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 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 reserves on hand,
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.

    Consolidated Statements of Operations and Other Comprehensive Loss Data
                   (in thousands except per share amounts)

                                                       Three Months Ended
                                                             March 31
                                                          2009          2008
                                                   ------------  ------------
      Contract manufacturing                       $         -   $     1,718
      Licensing revenue from collaborative
       agreements                                            4           302
                                                   ------------  ------------
                                                             4         2,020
                                                   ------------  ------------

      Research and development                             680         2,308
      Manufacturing                                          -         2,080
      General and administrative                         1,751         2,703
      Depreciation                                          65           103
      Investment and other income, net                     (20)          (60)
                                                   ------------  ------------
                                                         2,476         7,134
                                                   ------------  ------------
    Net loss                                            (2,472)       (5,114)
    Other comprehensive loss                                 -          (103)
                                                   ------------  ------------
    Comprehensive net loss                         $    (2,472)  $    (5,217)
                                                   ------------  ------------
                                                   ------------  ------------
    Basic and diluted loss per share               $     (0.13)  $     (0.26)
                                                   ------------  ------------
    Weighted average number of common shares
     outstanding (in thousands)                         19,492        19,486
                                                   ------------  ------------

                               Oncothyreon Inc.

                       Consolidated Balance Sheets Data
                               (in thousands)

                                                      March 31,  December 31,
                                                          2009          2008
    Cash, cash equivalents and short term
     investments.................................  $    15,430   $    19,166
    Total assets.................................  $    21,207   $    24,971
    Total long-term liabilities..................  $       389   $       393
    Stockholders' equity.........................  $    18,661   $    20,717
    Common shares outstanding (in thousands).....       19,492        19,492

For further information:

For further information: Investor and Media Relations Contact: Julie
Rathbun, Rathbun Communications, (206) 769-9219, ir@oncothyreon.com

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