BOTHELL, Wash. and VANCOUVER, British Columbia, Feb. 23, 2017 /CNW/ -- 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
|
(In thousands,
except per share and share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31
|
|
Twelve months
ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration
revenue
|
|
$
—
|
|
$
6,024
|
|
$
5,062
|
|
$
18,160
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,702
|
|
6,587
|
|
14,788
|
|
25,108
|
General and
administrative
|
|
2,295
|
|
2,915
|
|
8,933
|
|
11,805
|
Restructuring
costs (recovery)
|
|
1,814
|
|
—
|
|
2,206
|
|
—
|
Recovery of
lease termination loss
|
|
—
|
|
—
|
|
(1,250)
|
|
—
|
Litigation
settlement
|
|
—
|
|
—
|
|
1,375
|
|
—
|
Asset
impairment charge
|
|
202
|
|
—
|
|
202
|
|
—
|
Total operating expenses
|
|
6,013
|
|
9,502
|
|
26,254
|
|
36,913
|
Loss from
operations
|
|
(6,013)
|
|
(3,478)
|
|
(21,192)
|
|
(18,753)
|
Other income
(expense)
|
|
170
|
|
1,756
|
|
1,063
|
|
1,952
|
Net loss
|
|
$
(5,843)
|
|
$
(1,722)
|
|
$
(20,129)
|
|
$
(16,801)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
(0.19)
|
|
$
0.06
|
|
$
(0.67)
|
|
$
(0.64)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of basic and diluted common shares
|
|
30,021,544
|
|
29,804,655
|
|
29,949,432
|
|
26,147,344
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Assets:
|
|
|
|
|
Cash, cash
equivalents, short term investments and restricted
cash
|
|
$
25,735
|
|
$
55,458
|
Interest
receivable
|
|
32
|
|
111
|
Amounts
receivable
|
|
478
|
|
14
|
Prepaid
expenses and other current assets
|
|
954
|
|
1,987
|
Property,
equipment and other assets
|
|
271
|
|
639
|
Total
assets
|
|
$
27,470
|
|
$
58,209
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
8,166
|
|
$
13,217
|
Current
portion of long-term obligations
|
|
57
|
|
52
|
Warrant
liability
|
|
232
|
|
1,105
|
Lease
termination liability
|
|
—
|
|
1,250
|
Deferred
collaboration revenue
|
|
—
|
|
5,040
|
Long term
liabilities
|
|
49
|
|
105
|
Stockholders'
equity
|
|
18,966
|
|
37,440
|
Total liabilities and
stockholders' equity
|
|
$
27,470
|
|
$
58,209
|
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.