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OncoGenex increases economic interest in lead cancer drug OGX-011
Date:7/3/2008

le allowing Isis to continue to benefit as future milestones and commercial revenues are realized. By working closely with OncoGenex during the development of OGX-011, we have confidence that OncoGenex will independently maximize the value of OGX-011."

"The contributions of Isis have been instrumental in the development of OGX-011 to date and we anticipate that our positive interactions will continue with this amended relationship," added Cormack.

Under the terms of the original co-development agreement, OncoGenex paid 65% of the development costs and would receive 65% of any economic benefit resulting from the development of OGX-011. Under the terms of the amended agreement, Isis' funding commitment for 35% of the OGX-011 program ends, and OncoGenex will be responsible for all future development costs of OGX-011. These expenses have already been factored into OncoGenex' previously announced disclosures regarding anticipated development costs. Isis will receive royalties for OGX-011 ranging from 5.5% to 7% of net sales. In addition, OncoGenex will pay Isis 30% of the upfront fees and milestone payments OncoGenex receives if OncoGenex licenses OGX-011 prior to initiation of registration trials, 25% if OGX-011 is licensed before 20% of patients have been enrolled in a registration trial, 20% if OGX-011 is licensed prior to marketing approval and 15% thereafter.

OncoGenex recently announced preliminary Phase 2 data of OGX-011 in patients with hormone refractory prostate cancer at the 2008 Annual Meeting of the American Society of Clinical Oncology (ASCO). Investigators found that, in this patient population, OGX-011 continues to show better than expected survival results when compared to published results. OGX-011, also referred to as custirsen sodium, is a second-generation antisense oligonucleotide designed to facilitate tumor cell death induced by chemotherapy by decreasing production of clusterin, a cell survival protein linked to treatment res
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SOURCE OncoGenex Technologies Inc.
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