OncoGenex Announces Completion of $12.8 Million Venture Financing

VANCOUVER, Aug. 16 /CNW/ - OncoGenex Technologies Inc., a clinical-stage biotechnology company developing targeted therapeutics for the treatment of cancer, announced the completion of a $12.8 million (U.S.) oversubscribed series B2 round of private equity financing with participation from several leading venture capital firms. Existing investors participating in the round include Ventures West, H.I.G. Ventures, the Working Opportunity Fund managed by GrowthWorks Capital, and Business Development Bank of Canada. New investors include WHI Morula Fund, LLC, managed by William Harris Investors, and BC
Advantage Funds. Proceeds of the financing will support the development of the Company's lead compound OGX-011 in multiple cancer indications, as well as support the advancement of OncoGenex' second product candidate, OGX-427, into clinical development.

"This financing will provide OncoGenex with cash to fund operations into 2008," said Scott Cormack, President and CEO of OncoGenex. "The funds will allow us to build a robust data package for OGX-011 that will help to further define the clinical profile of the product in the eyes of oncologists and potential commercial development partners. We also have the opportunity to bolster the value of our oncology portfolio with the clinical development of OGX-427, which has shown in preclinical studies that it has the potential to restore sensitivity to standard chemotherapy regimes in both solid and hematologic tumor types."

OGX-011 inhibits production of clusterin, a cellular stress protein that is associated with resistance to standard cancer therapies. In a Phase 1 trial of OGX-011 in prostate cancer patients, once weekly dosing with OGX-011 produced a greater than 90 percent reduction in clusterin expression in prostate cancer cells and enhanced apoptosis associated with hormone ablation
therapy. Two Phase 2 trials for OGX-011 are currently ongoing in prostate and non-small cell lung cancers, and the Company expects to initiate two additional Phase 2 clinical studies in prostate and breast cancers later this year.

OGX-427 inhibits the production of heat shock protein 27 (Hsp27), a small heat shock protein that is over-expressed in numerous tumor types and is associated with treatment resistance through its ability to help cancer cells survive stress-induced injury. In preclinical single agent studies, OGX-427 demonstrated significant anti-tumour activity at very low concentrations. In addition, when combined with chemotherapy in preclinical prostate cancer studies, OGX-427 significantly enhanced the anti-tumour activity of the chemotherapeutic agent. OncoGenex expects clinical development of OGX-427 to
begin in 2006.

"OncoGenex has demonstrated its ability to build the value of its oncology portfolio through its focused approach to drug development," commented Nancy Harrison, Senior Vice President at Ventures West. "OncoGenex' efficient business model and clinical development expertise has allowed the Company to rapidly advance the clinical development of OGX-011. The current
financing will not only help to build on the existing clinical data package for OGX-011 but will also broaden the Company's portfolio of products."

About OncoGenex Technologies
OncoGenex Technologies Inc. (OncoGenex) is a clinical-stage biotechnology company dedicated to improving survival and quality of life of cancer patients by developing targeted therapeutics for treatment-resistant and metastatic cancer. The Company's lead drug candidate, OGX-011, has commenced Phase 2 studies in prostate cancer and non-small cell lung cancer, and two additional studies in prostate and breast cancer are slated to begin this year. OGX-427 is in preclinical development and is expected to enter clinical investigation in 2006. OncoGenex' ability to advance drugs quickly and efficiently results
from its ability to unite groups with a common interest in treating cancer: universities, hospitals, clinical networks, companies, granting agencies and investors. This efficient business model has enabled OncoGenex to add three products to its development program since 2001. Additional information about OncoGenex is available at www.oncogenex.ca.

For further information:
OncoGenex Contact:
Scott Cormack, President & CEO
604) 805-2274
scormack@oncogenex.ca