TD Waterhouse Note Oncolytics in Partnership Talks
INTERVIEW-Oncolytics says in talks on partnership deals
5:09PM ET on Friday May 13, 2011 by Thomson Reuters
* Companies across the globe show partnering interest
* Could launch reolysin in late 2013 if regulators approve
By S. John Tilak
TORONTO, May 13 (Reuters) - Oncolytics Biotech Inc <ONC.TO> <ONCY.O> says it has received interest from potential marketing partners across the world for its cancer-combating therapy, reolysin, and is in discussions with several of them as it looks to launch the much-heralded treatment as early as 2013.
"We're looking to cover all regions with partnerships," Chief Executive Brad Thompson told Reuters in an interview this week.
Oncolytics, a Calgary-based biotechnology company, develops specialized viruses to treat cancer. Reolysin is its lead product and is a formulation of a human reovirus that is associated with respiratory and gastrointestinal diseases.
The company says reolysin -- a short form of the term respiratory enteric orphan virus -- is designed to destroy cancer cells alone or in combination with chemotherapy treatments. It is currently being tested on humans.
Partnerships are key for smaller biotech companies, which need the scale of global or regional pharmaceutical companies to distribute and market their products.
"Basically you engage in (partnering) activities and you run like you don't have a partner. You do those two things in parallel," Thompson said.
Thompson declined to comment on when a deal could be signed other than to say it is likely to be before the product is launched. Analysts expect an agreement much earlier, possibly this year.
"We'll do a partnership when it gives us a better financial outcome than not having a partner does," Thompson said.
The timing of regulatory approval depends on factors such as how quickly people are enrolled for studies that are underway in several countries.
Late-stage clinical studies for head and neck cancer have been approved in six countries and that should expand to 10 or 11 countries by the end of the summer, Thompson said.
"It's possible that if everything goes correctly to have product approval in late 2013," he said.
Earlier this week, Oncolytics signed a commercial supply agreement with SAFC, a unit of Sigma-Aldrich Corp <SIAL.O>, for the commercial manufacture of reolysin.
"The deal is absolutely critical for us to be ready to file for product approval," Thompson said.
The company owns a patent until 2028 that covers methods for making and using modified reoviruses and also covers pharmaceutical compositions that include them. (Reporting by S. John Tilak; editing by Peter Galloway)
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