Oncothyreon announces development plans and personnel changes and updates financial guidance

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[{"type":"text","content":"\n\n\n\n- Conference Call Scheduled for 1:30 p.m. Pacific Time Today -\n\n\nSEATTLE, Dec. 18 /CNW/ - Oncothyreon Inc. (Nasdaq: ONTY) (TSX:ONY) (the\n"Company") today announced that, in conjunction with the transfer of\nresponsibility for the manufacture of Stimuvax(R) to Merck KGaA of Darmstadt,\nGermany announced previously today, the Company intends to restructure and to\nfocus its near term efforts on the clinical development of its small molecule\nproduct candidates in oncology, PX-478 and PX-866. PX-478 is an inhibitor of\nhypoxia inducible factor-1 alpha that is currently in a Phase 1 trial in\npatients with advanced metastatic cancer and lymphoma. PX-866 is an inhibitor\nof PI-3 kinase that is also in a Phase 1 trial in patients with advanced\ncancer.\n\n\n"We believe that an intense focus on these exciting product candidates is\nthe best means to create value with our available resources," said Robert L.\nKirkman, M.D., President and Chief Executive Officer of Oncothyreon. "We\ncurrently expect to complete the Phase 1 trials for each of these products\nand, if the data are supportive, to move each of them into Phase 2 trials in\n2009. We believe the approximately $13 we received from the sale of\nmanufacturing rights for Stimuvax and certain assets to Merck KGaA, together\nwith existing cash, will be sufficient to fund these objectives."\n\n\nOncothyreon also announced today that it will be reducing the size of its\nworkforce and of its senior management team. Approximately 8 employees in the\nCompany's Edmonton facility, primarily engaged in preclinical work and\nadministrative functions, will be leaving the Company. In addition, Edward\nTaylor, Vice-President and Chief Financial Officer, and Rao Koganty, Ph.D.,\nVice-President and Head of Synthetic Biologics, will be retiring, effective\nDecember 31, 2008. The resignation of Lynn Kirkpatrick, Ph.D., as Chief\nScientific Officer effective December 31, 2008 was previously announced.\nOncothyreon also intends to close its Tucson facility in 2009 and to transfer\nto Seattle or outsource activities in support of PX-478 and PX-866 that are\ncurrently conducted in Tucson.\n\n\n"Our goal with these changes is to create a sustainable team intensely\nfocused on our clinical development activities," added Dr. Kirkman. "By\nconcentratin...

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