Oncothyreon prices underwritten public offering of common stock

Oncothyreon Inc. (NASDAQ: ONTY) today announced that it has priced an underwritten public offering of 10,000,000 shares of its common stock at a price to the public of $4.00 per share for gross proceeds of $40.0 million. The net proceeds from the sale of the shares, after deducting the underwriters' discounts and other estimated offering expenses payable by Oncothyreon, will be approximately $37.4 million. Oncothyreon has also granted the underwriters a 30-day option to purchase up to an additional 15 percent of the shares of common stock offered in the public offering to cover over-allotments, if any, which would result in additional gross proceeds of approximately $6.0 million if exercised in full.

Oncothyreon currently intends to use the net proceeds of the offering to fund the development of PX-866, Oncothyreon's PI-3 Pan-isoform irreversible Kinase inhibitor, and ONT-10, Oncothyreon's proprietary follow-on vaccine to Stimuvax.  Stimuvax, currently in a Phase 3 pivotal trial, is a vaccine for patients with non-small cell lung cancer and is partnered with Merck KGaA.  The offering proceeds may also be used for general corporate purposes. The offering is expected to close on or about May 4, 2011, subject to the satisfaction of customary closing conditions.

Cowen and Company, LLC is acting as sole book-running manager for the offering, and Wedbush PacGrow Life Sciences is acting as co-manager.