AVEO Pharmaceuticals Announces Closing and Exercise of Over-Allotment Option for Recent Public Offering

AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO) today announced that it has closed its previously announced underwritten public offering of common stock. The total number of shares sold was 6,352,119, comprised of 5,750,000 shares of common stock initially offered and an additional 602,119 shares of common stock sold pursuant to the underwriters' exercise of their over-allotment option. Net proceeds are approximately $104.3 million, after deducting underwriting discounts and commissions and transactional fees, at a price of $17.50 per share to the public.

J.P. Morgan Securities LLC and Jefferies & Company, Inc. acted as joint book-running managers and underwriters for the offering, with Canaccord Genuity Inc. acting as co-lead manager.

The shares were sold by means of AVEO’s existing shelf registration statement on Form S-3, a prospectus and related prospectus supplement, all as filed with the Securities and Exchange Commission (the “SEC”). Copies of the prospectus supplement may be obtained from the offices of J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Telephone number 866-803-9204) or the offices of Jefferies & Company, Inc., Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022 (Telephone number 877-547-6340).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About AVEO

AVEO Pharmaceuticals (NASDAQ: AVEO) is a cancer therapeutics company committed to discovering, developing and commercializing targeted therapies to impact patients' lives.

Forward-looking Statements

Certain of the statements made in this press release are forward-looking. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to whether or not AVEO will be able to raise capital through the sale of shares of common stock, market and other conditions, and the impact of general economic, industry or political conditions in the United States or internationally. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Additional risks and uncertainties relating to the offering, AVEO and our business can be found under the heading "Risk Factors" in our most recent Form 10-Q filed with the Securities and Exchange Commission, in other filings that we periodically make with the SEC, and in the prospectus supplement related to the offering that AVEO filed with the SEC on June 15, 2011. In addition, the forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.