Oncothyreon reports decreased net operating loss in Q2 2014

Oncothyreon Inc. (NASDAQ: ONTY) today reported financial results for the second quarter ended June 30, 2014.

Loss from operations decreased to $7.8 million for the three months ended June 30, 2014 compared with $18.0 million for the comparable period in 2013, and decreased to $15.0 million for the six months ended June 30, 2014 compared with $26.0 million for the comparable period in 2013. The decrease in loss from operations for the three and six month periods ended June 30, 2014 compared to the prior year periods was due to lower research and development expenses primarily attributable to a $10.0 million upfront payment to Array BioPharma Inc. (Array) in June 2013. The decrease was partly offset by a slight increase in general and administrative expenses.

Net loss for the three months ended June 30, 2014 was $6.0 million, or $0.09 per basic and diluted share, compared with a net loss of $16.4 million, or $0.28 per basic and diluted share, for the comparable period in 2013. Net loss for the six months ended June 30, 2014 was $15.6 million, or $0.22 per basic and diluted share, compared with a net loss of $24.7 million, or $0.43 per basic and diluted share, for the comparable period in 2013. The decrease in net loss for the three months ended June 30, 2014 compared to the prior year period was due to lower research and development expenses primarily attributable to an upfront payment of $10.0 million to Array in June 2013, partially offset by a slight increase in general and administrative expenses. The decrease in net loss for the six months ended June 30, 2014 compared to the prior year period was due to lower research and development expenses primarily attributable to the upfront payment of $10.0 million to Array in June 2013, partially offset by $0.7 million of non-cash expense from the change in fair value of warrant liability for the six months ended June 30, 2014 compared to $1.3 million of non-cash income from the change in fair value of warrant liability for the six months ended June 30, 2013, and a slight increase in general and administrative expenses.

As of June 30, 2014, Oncothyreon's cash, cash equivalents and investments were $58.5 million, compared to $72.6 million at December 31, 2013, a decrease of $14.1 million, or 19.4 percent. The decrease was primarily attributable to $13.7 million of cash used in operations during the six months ended June 30, 2014.

Financial Guidance

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.

Oncothyreon currently expects operating expenses in 2014 to be lower than in 2013, which included the one-time upfront payment to Array. Oncothyreon currently expects cash used in operations in 2014 to be approximately $30 to $33 million, including expenses associated with the acquisition of Alpine Biosciences, Inc. This guidance remains unchanged from that given in the prior quarter. 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

Oncothyreon will conduct a conference call today, August 11, 2014 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its second quarter 2014 financial results and provide a review of its pipeline of products in development.