Oncolytics Biotech Inc. (ONCY)

[onco_investor]

Oncolytics WSJ Mention

Oncolytics Shares Leap For Second Straight Day On High Volume

http://online.wsj.com/article/BT-CO-20100209-712667.html?mod=WSJ_World_MIDDLEHeadlinesAmericas

By David Benoit
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Shares of cancer-treatment developer Oncolytics Biotech Inc. (ONCY) have soared this week as increased attention has led to growing excitement about the company's pivotal upcoming clinical trial for its head and neck cancer treatment.

Shares of the Calgary company were recently up 11% to $2.90 on nearly six times their typical trading volumes, a day after jumping 9.6% on nearly three times the typical amount of trading. The stock has now gained 23% so far this month, and earlier Tuesday crossed back above $3 for the first time since the middle of November. The stock had fallen after the pricing of an equity offering in November, which was to raise cash for the coming trial.

Analysts said there wasn't any specific fundamental change to explain the move Tuesday, but said investors have long been looking toward a late-stage study on Oncolytics' critical cancer therapeutic, Reolysin, for head and neck cancers. The treatment employs a virus that can target the cancerous cells.

Over the weekend, business news Web site DailyFinance.com posted an article featuring a largely positive interview with Chief Executive Brad Thompson. The story explained how Reolysin works and quoted Thompson as saying it is "rather straightforward" and has minimal side effects.

"Normally, the latest we ever find the virus in the body is a couple of weeks after the first injection, and then it's completely gone," Thompson said, according to the article.

The article also said a partnership could be announced by the end of the Phase 3 trial, which would mark a significant accomplishment for Oncolytics.

A spokeswoman for Oncolytics said she has received growing interest since the article appeared this weekend, including increased phone calls and emails about the treatment. She said that often happens with news stories about the company.

Thompson was also presenting at a conference held in New York on Monday, delivering the company's typical presentation on Reolysin's potential.

Versant Partners analyst Douglas Loe said he didn't know of anything specific to drive the shares Tuesday, but after initiating coverage recently, believes the stock could trade closer to $4.25.


-By David Benoit, Dow Jones Newswires; 212-416-2458; [e-mail]