OncoGenex announces pricing of public offering

OncoGenex Pharmaceuticals, Inc. (NASDAQ: OGXI) today announced that it has priced a public offering of 3,174,602 units, with each unit consisting of one share of the Company's common stock and one-half (1/2) of one warrant, at a purchase price of $15.75 per unit for an aggreate offering amount of $50 million. The net proceeds to OncoGenex, after underwriting discounts and commissions and other offering expenses, from the sale of the units are expected to be approximately $46.7 million. The Company intends to use the net proceeds from the offering primarily to advance its product pipeline, including its lead program, custirsen, and OGX-427, which is currently in clinical development as a treatment for prostate cancer and bladder cancer, as well as for general corporate purposes. 

Each whole warrant will be exercisable at any time on or after the date of issuance until the fifth anniversary of the date of issuance at an exercise price of $20. The shares of common stock and warrants are immediately separable and will be issued separately. The offering is expected to close on October 22, 2010, subject to customary closing conditions.

Stifel Nicolaus Weisel is acting as sole book-running manager and Needham & Company, LLC, Rodman & Renshaw, LLC and Wedbush PacGrow Life Sciences are acting as co-managers.

SOURCE OncoGenex Pharmaceuticals, Inc.