April 1, 2010

AVEO Pharmaceuticals, Inc. Announces Exercise of Over-Allotment Option for Recent Initial Public Offering

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CAMBRIDGE, Mass., April 1, 2010 –(BUSINESS WIRE)–AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO – News), a biopharmaceutical company focused on discovering, developing and commercializing cancer therapeutics, today announced that the underwriters of its recently completed initial public offering of common stock have exercised their option to purchase an additional 968,539 shares of common stock to cover over-allotments. The sale of the additional shares is anticipated to close on April 6, 2010. Including proceeds from the sale of the additional shares, the aggregate net proceeds to AVEO from the initial public offering, after deducting underwriting discounts and commissions and estimated offering expenses, are approximately $80.7 million.

J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated acted as joint book-running managers for the offering. Leerink Swann LLC acted as lead co-manager and Canaccord Adams Inc. acted as co-manager of the offering.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on March 11, 2010. The public offering was made by means of a written prospectus, copies of which may be obtained from J.P. Morgan Securities Inc. c/o Broadridge Financial Solutions at 1155 Long Island Avenue, Edgewood, NY 11717, or by calling 866-803-9204; or from Morgan Stanley & Co. Incorporated at 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, by calling 866-718-1649 or by emailing prospectus@morganstanley.com.

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

About AVEO

AVEO is a biopharmaceutical company focused on discovering, developing and commercializing cancer therapeutics. Its product candidates are targeted against important mechanisms known or believed to be involved in cancer.

Any statements in this press release about our future expectations, plans and prospects, including statements about the anticipated closing of the sale of additional shares of our common stock pursuant to the underwriters’ exercise of their over-allotment option and our discovery, development and commercialization activities, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to: our ability to successfully research, develop and obtain and maintain regulatory approvals for our product candidates; general economic and industry conditions; and other factors discussed in the “Risk Factors” section of the final prospectus relating to our initial public offering filed with the Securities and Exchange Commission, and in other filings that we periodically make with the SEC. 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.

SOURCE: AVEO Pharmaceuticals, Inc.

AVEO Pharmaceuticals, Inc.
David Johnston,Chief Financial Officer, 617-299-5810
Pure Communications
Caton Lovett, 910-232-7166