BELLEVUE, WA, March 10 /PRNewswire-FirstCall/ - Oncothyreon Inc. (the “Company”) today reported financial results for the year and quarter ended December 31, 2007. All results are in U.S. dollars and prepared using U.S. GAAP.
Net loss for the year ended December 31, 2007, was $20.3 million or $1.04 per basic and diluted share, compared with $36.4 million, or $2.38 per basic and diluted share in 2006. The substantial decrease in net loss when compared with 2006 primarily reflects the charge of $24.9 million in 2006 related to the acquisition of ProlX Pharmaceuticals, Inc. General and administrative expenses increased by $4.2 million for the year ended December 31, 2007, compared with the year ended December 31, 2006, primarily due to costs associated with the Company’s reincorporation into the United States and certain costs associated with a reduction in administrative staff. Revenue from operations for the year ended December 31, 2007, was $3.8 million, compared to $4.0 million in the prior year.
Net loss for the quarter ended December 31, 2007, was $5.2 million or $0.26 per basic and diluted share, compared with $27.1 million or $1.58 per basic and diluted share for the comparable period in 2006. Revenue from operations was $1.9 million, compared to $1.1 million for the same period in 2006. Expenses for the quarter were $7.1 million, compared with $28.7 million for the comparable period in 2006, which included charges of $24.9 million relating to the October 2006 acquisition of ProlX.
As of December 31, 2007, Oncothyreon’s cash, cash equivalents and short-term investments were $24.2 million, compared to $28.4 million at the end of 2006, a decrease of $4.2 million, or 14.8 percent. The net decrease reflects operating expenditures of $22.8 million in 2007 offset by $15.8 million in cash received under the Company’s collaborative and contract manufacturing agreements. The decrease was also offset by the favorable effect of exchange rate fluctuations on cash and cash equivalents of $1.7 million and short-term investments of $1.9 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.
For 2008, Oncothyreon expects expenses to increase over 2007 as a result of increased manufacturing and process development activities for Stimuvax(R) and more advanced clinical development activity for the Company’s small molecule drugs. The Company expects these expenses to be partially offset by increased revenue related to the purchase of Stimuvax clinical supplies by Merck KGaA. As a result, Oncothyreon anticipates that operating cash requirements for 2008 will be between $17 million and $19 million. The Company estimates that it currently has sufficient cash resources to last into the second quarter of 2009.
Oncothyreon’s management will discuss the Company’s fourth quarter and full year 2007 financial results as well as general business updates during a conference call beginning at 1:30 p.m. PT/ 4:30 p.m. ET today, Monday, March 10, 2008. To listen to a webcast of the discussion, visit www.oncothyreon.com.
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 expenses related to 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.
CONTACT: Investor and Media Relations Contact: Julie Rathbun, Rathbun
Communications, (206) 769-9219, ir@oncothyreon.com
