Oncothyreon reports second quarter 2008 financial results

    BELLEVUE, WA, Aug. 7 /CNW/ - Oncothyreon Inc. (NASDAQ:   ONTY) (TSX: ONY)
(the "Company") today reported financial results for the quarter and six
months ending June 30, 2008.
    Total revenue was $1.2 million and $3.2 million for the three and six
month periods ended June 30, 2008, compared to $0.6 million and $0.8 million
for the comparable periods in 2007. The increase in total revenue reflects
increased sales of clinical trial material to Merck KGaA to support the Phase
3 trial of Stimuvax(R).
    Net loss was $4.9 million, or $0.25 per basic and diluted share, for the
three months ended June 30, 2008, and a net loss of $10.0 million, or $0.51
basic and diluted share, for the six months ended June 30, 2008, compared with
$5.0 million and $9.6 million, or $0.25 and $0.49 per basic and diluted share,
for the comparable periods in 2007.
    Expenses for the three and six month periods ended June 30, 2008, were
$6.1 million and $13.2 million, compared with $5.6 million and $10.4 for the
comparable periods in 2007. The increase in operating expenses is primarily
attributable to the manufacturing costs associated with the increase in sales
of Stimuvax clinical trial material to Merck KGaA and increased legal,
accounting and investor communication costs associated with the preparation of
statutory filings in the United States with the Securities and Exchange
    As of June 30, 2008, Oncothyreon's cash, cash equivalents and short term
investments were $14.2 million, compared to $24.2 million at the end of 2007,
a decrease of $10.0 million. The decrease was primarily the result of the use
of cash to fund operations.

    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 the balance of 2008, Oncothyreon expects expenses to remain
approximately the same as in the first half of the year. Manufacturing and
process development activities for Stimuvax are expected to continue at the
same level for the balance of the year. The Company increased its inventory of
Stimuvax in the first half of 2008 to support the ongoing Phase 3 trial and an
anticipated additional trial. Oncothyreon expects revenue related to the
purchase of this inventory by Merck KGaA later in 2008. As a result, the
Company anticipates that operating cash requirements for the balance of 2008
will be between $10 million and $12 million. Oncothyreon estimates that,
taking into account anticipated revenue, the Company currently has sufficient
cash resources to fund planned operations into the first quarter of 2009.

    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 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 future expenses, 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 www.sec.gov and on SEDAR at www.sedar.com.

                               Oncothyreon Inc.

    Consolidated Statements of Operations and Other Comprehensive Loss Data
     (in thousands of U.S. dollars, except share and per share amounts)

                                    Three Months Ended      Six Months Ended
                                           June 30               June 30
                                   --------------------  --------------------
                                       2008       2007       2008       2007
                                   ---------  ---------  ---------  ---------

      Contract research and
       development...............  $      -   $    473   $      -   $    572
      Contract manufacturing.....       802          -      2,520          -
      Licensing revenue from
       collaborative agreements..       350        105        652        168
      Licensing, royalties
       and other revenue.........         -         12          -         21
                                   ---------  ---------  ---------  ---------
                                      1,152        590      3,172        761
                                   ---------  ---------  ---------  ---------

      Research and development...     2,726      3,355      5,034      6,327
      Manufacturing..............       646          -      2,726          -
      General and administrative.     2,661      2,214      5,364      4,125
      Marketing and business
       development...............         -         34          -        512
      Amortization...............       103         45        206        102
      Investment and other income       (68)       305       (128)         -
      Change in fair value
       of warrant liability......         -       (402)         -       (668)
                                   ---------  ---------  ---------  ---------
                                      6,068      5,551     13,202     10,398
                                   ---------  ---------  ---------  ---------
    Net loss.....................    (4,916)    (4,961)   (10,030)    (9,637)
    Other comprehensive loss.....        72        763        (31)     1,990
                                   ---------  ---------  ---------  ---------
                                   ---------  ---------  ---------  ---------
    Comprehensive net loss.......  $ (4,844)  $ (4,198)  $(10,061)  $ (7,647)
                                   ---------  ---------  ---------  ---------
                                   ---------  ---------  ---------  ---------
    Basic and diluted loss
     per share...................  $  (0.25)  $  (0.25)  $  (0.51)  $  (0.49)
                                   ---------  ---------  ---------  ---------
    Weighted average number
     of common shares
     outstanding (in thousands)..    19,492     19,486     19,489     19,486
                                   ---------  ---------  ---------  ---------

                               Oncothyreon Inc.

                       Consolidated Balance Sheets Data
             (in thousands of U.S. dollars, except share amounts)
                                                       June 30,  December 31,
                                                          2008          2007

    Cash, cash equivalents and short
     term investments............................. $    14,187   $    24,186
    Total assets.................................. $    27,791   $    36,218
    Total long-term liabilities................... $    14,201   $    12,526
    Stockholders' equity.......................... $     2,766   $    12,019
    Common shares outstanding (in thousands)......      19,492        19,486

For further information:

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

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890