BOTHELL, WA and VANCOUVER Nov. 5 /CNW/ -- OncoGenex Pharmaceuticals, Inc. ("OncoGenex" or the "Company") (NASDAQ: OGXI) today reported unaudited financial results for the third quarter and nine months ended September 30, 2009 and reviewed the Company's highlights for the third quarter of 2009.

The following consolidated results reflect the operations of OncoGenex Technologies Inc. ("OncoGenex Technologies") prior to the August 21, 2008 reverse takeover of Sonus Pharmaceuticals, Inc. ("Sonus"), and the consolidated results of OncoGenex thereafter.

Research and development expenses for the third quarter of 2009 decreased to $1.5 million from $1.6 million in 2008, due mainly to lower costs associated with OGX-427. For the nine months ended September 30, 2009 research and development expenses increased to $6.8 million from $3.6 million in 2008. The increase was primarily due to OGX-011 and OGX-427 manufacturing-related costs incurred in the first nine months of 2009, an increase in employee expenses and higher facility costs resulting from the reverse takeover of Sonus. Reducing the expenses in the first nine months of 2008 was a Scientific Research and Development (SRED) claim, which offset R&D expenses in that period. The SRED program is a Canadian federal tax incentive program that encourages Canadian businesses to conduct research and development in Canada. As OncoGenex Technologies became an affiliate of a public company as a result of the reverse takeover, SRED claims can now only be applied against taxes payable.

General and administrative expenses for the third quarter decreased to $0.9 million from $1.0 million in 2008, due mainly to lower legal and accounting fees incurred in 2009. For the nine months ended September 30, 2009 general and administrative expenses increased to $2.7 million from $2.2 million in 2008. The increase in 2009 was primarily due to increased employee expenses and increased costs associated with operating as a public company.

The net loss for the third quarter increased to $2.4 million from $4.6 million in income in 2008. For the nine months ended September 30, 2009 the net loss increased to $9.4 million from $0.8 million in income in 2008. The net income recognized in both 2008 periods was primarily due to the impact of an extraordinary gain on the reverse takeover of Sonus and a reversal of tax expense associated with the change in capital structure of OncoGenex Technologies, both non-cash items.

The third quarter and nine months ended September 30, 2008 also included $0.4 million and $2.0 million, respectively, in preferred share accretion, a non-cash item, which did not recur in the third quarter or nine months ended September 30, 2009, as subsequent to the reverse takeover there are no preferred shares outstanding.

The Company had $12.5 million in cash, cash equivalents and short-term investments as of September 30, 2009, compared to $12.4 million in cash, cash equivalents and short-term investments as of December 31, 2008.

The Company had 6,034,959 shares outstanding as of November 1, 2009. The Company believes that its cash, cash equivalents and short-term investments will be sufficient to fund its currently planned operations through at least the third quarter of 2010, including:

-   completing partnering discussions related to OGX-011;
-   completing follow-up monitoring visits related to completed phase 2
clinical trials of OGX-011;
-   completing follow-up monitoring visits related to the Phase 1
clinical trial evaluating OGX-427 as a monotherapy in patients with
solid tumors and continuing evaluation of OGX-427 in combination with
docetaxel in patients with solid tumors;
-   continuing an investigator-sponsored Phase 1 clinical trial
evaluating OGX-427 treatment in patients with bladder cancer;
-   continuing critical path initiatives including manufacturing and
clinical trial readiness activities in anticipation of OGX-011
Phase 3 clinical trials; and
-   meeting working capital needs, capital expenditures and general
corporate purposes.

"We have continued to make solid progress in advancing our product pipeline, most recently with the receipt of Fast Track Designation from the U.S.