BOTHELL, Wash. and VANCOUVER, British Columbia, Feb. 23, 2017 /PRNewswire/ -- OncoGenex Pharmaceuticals, Inc. (NASDAQ: OGXI) today announced its year end
2016 financial results.
Recent Events
- In January 2017, OncoGenex, and Achieve Life Science, Inc., a privately held specialty
pharmaceutical company, announced that they have entered into a definitive merger agreement under which OncoGenex will acquire
Achieve in an all-stock transaction. Upon completion of the proposed merger, Achieve's stockholders are expected to own 75% of
the combined company's outstanding shares and current equityholders of OncoGenex are expected to own the remaining 25% of the
combined company's outstanding shares. Following completion of the merger, OncoGenex Pharmaceuticals, Inc. will
be renamed Achieve Life Sciences, Inc. The proposed merger is expected to close by mid-2017, subject to customary closing
conditions.
- In October 2016, the company announced positive survival results from the final analysis of
the Phase 2 Borealis-2™ trial of apatorsen in combination with docetaxel treatment that enrolled 200 patients with metastatic
bladder cancer whose disease had progressed following first-line platinum-based chemotherapy. Patients who received
apatorsen treatment experienced a 20% reduction in risk of death, compared to patients receiving docetaxel alone.
- In February 2017, results from the Pacific Trial were presented at the American Society of
Clinical Oncology 2017 Genitourinary Cancers Symposium. The trial randomized 72 patients who were experiencing a rising PSA
while receiving Zytiga® (abiraterone acetate ). Apatorsen was well tolerated in combination with Zytiga with the median
treatment duration of 106 days for apatorsen plus Zytiga compared to 75 days for continuing Zytiga alone. The proportion of
patients who were progression free at Day 60 was 33% when apatorsen was added to Zytiga, compared to 17% with Zytiga
alone.
- OncoGenex discontinued the development of its custirsen and OGX-225 programs and is currently seeking a collaboration
partnership to further develop apatorsen.
Financial Results
As of December 31, 2016, the company's cash, cash equivalents, and short-term
investments decreased to $25.5 million from $55.2 million as of
December 31, 2015. Based on current expectations, OncoGenex believes that its cash, cash
equivalents, and short-term investments will be sufficient to fund its currently planned operations for at least the next 12
months.
Revenue for the fourth quarter and year ended December 31, 2016 was zero and $5.1 million,
respectively. The advanced reimbursement payment made by Teva, as part of the Termination Agreement, was deferred and
recognized as collaboration revenue on a dollar for dollar basis as costs were incurred as part of the continuing research and
development activities related to custirsen. The decrease in collaboration revenue in 2016 as compared to 2015 was due to the
full recognition of the remaining amounts of deferred revenue in the first half of 2016.
Total operating expenses for the fourth quarter and year ended December 31, 2016 were
$6.0 million and $26.3 million, respectively. Net loss for the fourth
quarter and year ended December 31, 2016 was $5.8 million and
$20.1 million, respectively.
As of Feb 23, 2017 OncoGenex had 30,086,106 shares outstanding.
Important Additional Information about the Proposed Merger
This communication is being made in respect of the proposed merger involving OncoGenex Pharmaceuticals,
Inc. and Achieve Life Science, Inc. OncoGenex intends to file a registration statement on Form S-4 with
the SEC, which will contain a joint proxy statement/prospectus and other relevant materials, and plans to file with
the SEC other documents regarding the proposed transaction. The final joint proxy statement/prospectus will be sent to
the stockholders of OncoGenex and Achieve. The joint proxy statement/prospectus will contain information about OncoGenex,
Achieve, the proposed merger and related matters. STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS) AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING A DECISION ABOUT THE MERGER
AND RELATED MATTERS. In addition to receiving the joint proxy statement/prospectus and proxy card by mail, stockholders
will also be able to obtain the joint proxy statement/prospectus, as well as other filings containing information about
OncoGenex, without charge, from the SEC's website (http://www.sec.gov) or, without charge, by directing a written request to: OncoGenex Pharmaceuticals,
Inc., 19820 North Creek Parkway, Suite 201, Bothell, WA 98011, Attention:
Investor Relations or to Achieve Life Science, Inc., 30 Sunnyside Avenue, Mill Valley, CA 94941,
Attention: Rick Stewart.
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of
securities in connection with the proposed merger shall be made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended.
Participants in Solicitation
OncoGenex and its executive officers and directors may be deemed to be participants in the solicitation of proxies
from OncoGenex's stockholders with respect to the matters relating to the proposed merger. Achieve and its officers and directors
may also be deemed a participant in such solicitation. Information regarding OncoGenex's executive officers and directors is
available in OncoGenex's proxy statement on Schedule 14A, filed with the SEC on April 21, 2016. Information
regarding any interest that OncoGenex, Achieve or any of the executive officers or directors of OncoGenex or Achieve may have in
the transaction with Achieve will be set forth in the joint proxy statement/prospectus that OncoGenex intends to file with
the SEC in connection with its stockholder vote on matters relating to the proposed merger. Stockholders will be able
to obtain this information by reading the joint proxy statement/prospectus when it becomes available.
About OncoGenex and Apatorsen
OncoGenex is a biopharmaceutical company committed to the development and commercialization of new therapies that
address treatment resistance in cancer patients. The company's product candidate, apatorsen (OGX-427), is designed to inhibit
production of Hsp27, disable cancer cells' defenses and overcome treatment resistance. Hsp27 is an intracellular protein that
protects cancer cells by helping them survive, leading to resistance and more aggressive cancer phenotypes. Both the potential
single-agent activity and synergistic activity of apatorsen with cancer treatments may increase the overall benefit of existing
therapies and augment the durability of treatment outcomes, which could lead to increased patient survival. More information is
available at www.OncoGenex.com and at the
company's Twitter account: https://twitter.com/OncoGenex_IR.
OncoGenex' Forward Looking Statements
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 terms, timing, conditions to
and anticipated completion of the proposed merger with Achieve Life Science; the expected ownership of the combined company;
the potential benefits and potential development of apatorsen; and the adequacy of cash reserves. All statements
other than statements of historical fact are statements that could be deemed forward-looking statements. OncoGenex and/or Achieve
may not actually achieve the proposed merger, or any plans or product development goals in a timely manner, if at all, or
otherwise carry out the intentions or meet the expectations or projections disclosed in these forward-looking statements. These
statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially from those described in the forward-looking statements,
including, among others, the failure of the OncoGenex or Achieve stockholders to approve the transaction; the failure of either
party to meet the closing conditions of the transaction; delays in completing the transaction and the risk that the transaction
may not be completed at all; the failure to realize the anticipated benefits from the transaction or delay in realization
thereof; the success of the combined businesses; operating costs and business disruption during the pendency of and following the
proposed merger; the risk that apatorsen will not receive regulatory approval or be successfully commercialized; the risk
that new developments in the rapidly evolving cancer therapy landscape require changes in business strategy or clinical
development plans; the risk that apatorsen may not demonstrate the hypothesized or expected benefits; general
business and economic conditions; and the other factors described in our risk factors set forth in OncoGenex's filings with
the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. OncoGenex 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.
Borealis-2™ is a registered trademark of OncoGenex Pharmaceuticals, Inc.
Consolidated Statements of Loss
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(In thousands, except per share and share data)
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(unaudited)
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Three months ended December 31
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Twelve months ended December 31,
|
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2016
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2015
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2016
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2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Collaboration revenue
|
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$ —
|
|
$ 6,024
|
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$ 5,062
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$ 18,160
|
|
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|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
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Research and development
|
|
1,702
|
|
6,587
|
|
14,788
|
|
25,108
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General and administrative
|
|
2,295
|
|
2,915
|
|
8,933
|
|
11,805
|
Restructuring costs (recovery)
|
|
1,814
|
|
—
|
|
2,206
|
|
—
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Recovery of lease termination loss
|
|
—
|
|
—
|
|
(1,250)
|
|
—
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Litigation settlement
|
|
—
|
|
—
|
|
1,375
|
|
—
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Asset impairment charge
|
|
202
|
|
—
|
|
202
|
|
—
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Total operating expenses
|
|
6,013
|
|
9,502
|
|
26,254
|
|
36,913
|
Loss from operations
|
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(6,013)
|
|
(3,478)
|
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(21,192)
|
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(18,753)
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Other income (expense)
|
|
170
|
|
1,756
|
|
1,063
|
|
1,952
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Net loss
|
|
$ (5,843)
|
|
$ (1,722)
|
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$ (20,129)
|
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$ (16,801)
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|
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Basic and diluted net loss per share
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$ (0.19)
|
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$ 0.06
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$ (0.67)
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$ (0.64)
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|
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Weighted average number of basic and diluted common shares
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30,021,544
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29,804,655
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29,949,432
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26,147,344
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Consolidated Balance Sheets
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(In thousands)
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December 31,
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December 31,
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2016
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2015
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Assets:
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Cash, cash equivalents, short term investments and restricted
cash
|
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$ 25,735
|
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$ 55,458
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Interest receivable
|
|
32
|
|
111
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Amounts receivable
|
|
478
|
|
14
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Prepaid expenses and other current assets
|
|
954
|
|
1,987
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Property, equipment and other assets
|
|
271
|
|
639
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Total assets
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$ 27,470
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$ 58,209
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Liabilities and stockholders' equity:
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|
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Accounts payable and accrued liabilities
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$ 8,166
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$ 13,217
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Current portion of long-term obligations
|
|
57
|
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52
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Warrant liability
|
|
232
|
|
1,105
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Lease termination liability
|
|
—
|
|
1,250
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Deferred collaboration revenue
|
|
—
|
|
5,040
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Long term liabilities
|
|
49
|
|
105
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Stockholders' equity
|
|
18,966
|
|
37,440
|
Total liabilities and stockholders' equity
|
|
$ 27,470
|
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$ 58,209
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oncogenex-pharmaceuticals-inc-reports-financial-results-for-year-end-2016-300411302.html
SOURCE OncoGenex Pharmaceuticals, Inc.