Oncolytics Announces Breakthrough in Cancer Treatment Trials

Oncolytics Biotech Inc.'s (ONCY) cancer fighting virus, Reolysin, is the key to the company's future value, says Blackmont analyst Wayne Schnarr.

He initiated coverage on Oncolytics with a "speculative buy" rating and C$3.25 price target, representing upside of roughly 80% on the stock's current C$1.84 value.

One of a growing list of biotech companies who have announced important breakthroughs for treating cancer recently, Oncolytics is expected to report further positive clinical data from 10 clinical trails that are currently underway.

In a note to clients Mr. Schnarr said:

Reolysin's safety profile is excellent, activity has been observed in all trials for which data has been reported, and increased tumour responses have been observed when Reolysin is combined with radiation and chemotherapy.

He added the fact that positive new data should increase the potential for a pharma partnership.

Last week, prior to the American Society of Clinical Oncology [ASCO] conference, several biotech companies including Genentech (DNA), GlaxoSmithKline (GSK), AstraZeneca (AZN), Eli Lilly (LLY) and Pfizer (PFE) announced breakthroughs in their cancer treatment trials.

Comments

[razormdthe2nd]

...breakthrough????...... joke!!!...ONCY is yet another in an almost endless line of Canadian biotech scam companies designed for nothing more than fleecing naieve investors...I would bet on hell freezing over long before reolysin becomes a cancer therapy.

2008 May 23 09:51 AM

[Evan]

Breakthrough? Not really. Strong and gradually increasing evidence for an unconventional therapy is more accurate.

Reovirus strains have been long suggested to have moderate efficacy against cancers of a variety of types, with low systemic toxicity. Oncolytics has patents on use of Reovirus in cancer therapy, as well as processes for bulk production of the virus, and is actively sponsoring research by independent investigators at numerous centers, to define appropriate uses of its sole product.

Evidence of efficacy is currently accumulating in multiple trials with various cancers. Early human trials were very small and have focused mostly on patients with advanced, likely fatal malignancies, who have exhausted all other reasonable therapeutic options. Responses and "cures" have often been observed in these severely ill patients. Current trials are expanding the evidence for efficacy in various tumor types, as well as characterizing optimum dosing and delivery techniques, exploring combinations with conventional therapeutic strategies to enhance efficacy, and accumulation of larger samples.

Many investors, myself included, have been disappointed with this stock's price performance, which seems to be primarily due to continued cash burn to finance ongoing research, lack of current income, and the excruciatingly slow process required for gaining approval of an unconventional therapy involving a live virus. That may make it a speculative stock, but it's a long way from being a "scam."

This company has avoided marketing hype and unfounded claims. Substantial and convincing published research is readily available, for those willing to perform their due diligence. I have reviewed much of this, and continue to believe this company offers great potential rewards for the patient long-term investor, and eventually a powerful therapeutic option for many.

2008 May 27 06:09 PM

[razormdthe2nd]

Poor "Evan"...he'll probably go broke defending this pathetic stock...he'll never stop ask himself why this company has no partners for such a "breakthrough in cancer treatment"...he'll standby and watch the company pour millions after millions into various trials none of which ever seem to make it to phase III DESPITE the therapy offering such a dramatic "breakthrough"...he'll watch as the company continues to sell millions and millions more shares...and management will draw hefty salaries, bonuses, perks and benefits...and the brokers will reap their fat commissions...but where o'where will be all the shareholders' yachts?

2008 May 27 07:56 PM

[Toeser]

I think it is highly likely that Reolysin will become a significant cancer treatment. I just don't know if that will occur before ONCY's patents run out and I am sitting senile in a nursing home. The company seems to love research without a commercial endpoint. Many, many positive indications going back years do not appear to have brought the company any closer to a regulatory approval.

2008 Jun 10 04:12 AM

[longtermist]

@razormdthe2nd

Good grief wo/man. All you offer is rank bravado but no actual facts to back up your rant. I checked out your comment stream, you are a heckler. Why not due everyone a favor and stay quiet unless you have something intelligent with data to back your smug self-entitled polemics up with.

2009 Mar 13 03:16 PM

[Jolly_Rancher]

Thanks, razor for your comments here and other places. I don't know what your motivation is, but your advice has saved me a few bucks and also made me chuckle. Your comments have helped me avoid more than one biotech scam and made money on another biotech recommended by one of your aliases. Your research is thorough and your logic is incisive. You can find me on the MNKD yahoo message board if you have any other advice or humorous comments.

Have a great day,
Jolly Rancher

On May 23 09:51 AM razormdthe2nd wrote:

> ...breakthrough????...... joke!!!...ONCY is yet another in an almost
> endless line of Canadian biotech scam companies designed for nothing
> more than fleecing naieve investors...I would bet on hell freezing
> over long before reolysin becomes a cancer therapy.

2009 Mar 23 03:52 PM