Oncothyreon Reports Full Year and Fourth Quarter 2011 Financial Results
Mar 06, 2012, 08:00 ET
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.
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.
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.
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 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
| ONCOTHYREON INC.
Condensed Consolidated Statement of Operations Data
(in thousands except share and per share amounts)
| Three Months
|Revenue from collaborative and license agreements||$||-||$||5||$||145||$||18|
|Research and development||4,151||3,452||17,915||11,601|
|General and administrative||2,407||1,545||6,929||7,901|
|Total operating expenses||6,558||4,997||24,844||19,502|
|Loss from operations||(6,558)||(4,992)||(24,699)||(19,484)|
|Other income (expense)|
|Investment and other income (expense), net||15||536||305||636|
|Change in fair value of warrant liability||(4,783)||(1,698)||(17,631)||3,030|
|Total other income (expense), net||(4,946)||(1,162)||(17,957)||3,666|
|Loss before income taxes||(11,504)||(6,154)||(42,656)||(15,818)|
|Income tax benefit||-||-||-||200|
|Net loss per share - basic||$||(0.27)||$||(0.20)||$||(1.12)||$||(0.58)|
|Net loss per share - diluted||$||(0.27)||$||(0.20)||$||(1.12)||$||(0.58)|
|Shares used to compute basic loss per share||43,154,697||30,062,101||38,197,666||26,888,588|
|Shares used to compute diluted loss per share||43,154,697||30,062,101||38,197,666||26,888,588|
| ONCOTHYREON INC.
Consolidated Balance Sheet data
(in thousands except share amounts)
|| As of December 31,
|Cash, cash equivalents and investments||$||66,407||$||28,877|
|Long term liabilities||$||33,236||$||13,727|
|Common shares outstanding||43,613,107||30,088,628|
SOURCE Oncothyreon Inc.
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