Press Release

Cranbury, NJ – May 18, 2016 — Oncobiologics, Inc. (NASDAQ: ONSIU), a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics, today announced that it successfully closed its previously announced initial public offering of 5,833,334 units at a price to the public of $6.00 per unit. Each unit consists of one share of common stock, one-half of a Series A warrant and one-half of a Series B warrant. Each whole Series A warrant entitles the holder to purchase one share of Oncobiologics' common stock at an initial exercise price of $6.60, subject to adjustment. Each whole Series B warrant entitles the holder to purchase one share of Oncobiologics' common stock at an initial exercise price of $8.50, subject to adjustment.  Oncobiologics, Inc. also has granted the underwriters a 30-day option to purchase up to an additional 875,000 units at the initial public offering price per unit to cover over-allotments, if any. All of the units are being offered by Oncobiologics, Inc. Concurrently with the offering, Oncobiologics, Inc. is also selling, through a separate private placement, 833,332 units to Sabby Healthcare Master Fund Ltd., or Sabby, an existing stockholder, at the initial public offering price. The units began trading on May 13, 2016, on the Nasdaq Global Market under the ticker symbol "ONSIU."  

Total net proceeds to the company from the offering, after deducting underwriter discounts and commissions and estimated offering expenses, were approximately $29.8 million. The company intends to use the net proceeds from the offering to advance ONS-3010 through Phase 3 clinical trials, to fund its other ongoing research and development activities, including advancing development of ONS-1045 to be ready to enter a Phase 3 clinical trial, and advancing development of ONS-1050 and ONS-4010 to be ready to enter Phase 1 clinical trials and the remainder for working capital and general corporate purposes. Such amounts do not reflect net proceeds of approximately $4.6 million from the concurrent private placement to Sabby at the initial public offering price of$6.00 per unit, after deducting estimated underwriting discounts and commissions, nor any proceeds that may be received from the exercise of the Series A and Series B warrants included in the units sold in either the offering or to Sabby in the concurrent private placement.

The common stock, Series A warrants and Series B warrants comprising the units will begin trading separately on the NASDAQ Global Market under the symbols "ONS," "ONSIW" and "ONSIZ," respectively, on the first trading day following the expiration of the underwriters' 30-day over-allotment option, at which time trading of the units will be suspended and the units will be delisted.

Jefferies LLC and Barclays Capital Inc. are serving as joint book-running managers for the offering. Cantor Fitzgerald & Co. is acting as lead manager.

A registration statement relating to these securities has been filed with the SEC and has been declared effective. A copy of the final prospectus relating to the offering may be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, telephone: (877) 547-6340, email: Prospectus_Department@Jefferies.com or from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847, e-mail: Barclaysprospectus@broadridge.com.

This news 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 offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Oncobiologics, Inc. and its BioSymphony^™Platform
Oncobiologics is a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics. Its current focus is on technically challenging and commercially attractive monoclonal antibodies (mAbs) in the disease areas of immunology and oncology. Oncobiologics is advancing its pipeline of eight biosimilar products, two of which are currently in clinical development. Led by a team of biopharmaceutical experts, Oncobiologics operates from in-house state-of-the-art fully integrated research and development, and manufacturing facility in Cranbury, New Jersey. Oncobiologics employs its BioSymphony™ Platform to address the challenges of biosimilar development and commercialization by developing high quality mAb biosimilars in an efficient and cost-effective manner on an accelerated timeline.

CONTACTS:
Oncobiologics:
Lawrence A. Kenyon
Chief Financial Officer
LawrenceKenyon@oncobiologics.com

Media:
Alex Fudukidis
Russo Partners, LLC
alex.fudukidis@russopartnersllc.com

Investors:
Robert Flamm, Ph.D.
Russo Partners, LLC
robert.flamm@russopartnersllc.com