Summary of Recent Analyst Comments
Thanks Taltell
Chad Messer, Needham (9/13/13) "Valuation is "compelling. Oncolytics is developing Reolysin, a naturally occurring virus that is safe to humans but kills cancer cells. The company will report pivotal data in head and neck cancer this September or October, which could lead to EU approval and, along with a confirmatory study, support a US filing. We expect positive data based on an earlier interim analysis. Trading at an enterprise value of <$350 million, we find ONCY shares compelling given the potential near-term upside"
Douglas Loe, Euro Pacific Capital (9/9/13) "We maintain our Speculative Buy rating for Oncolytics Biotech Inc. The company reported final tumor response data from its 55-patient, phase 2 open-label trial of Reolysin's effect on squamous cell carcinoma (SCC). . .the positive tumor response signal in SCC is consistent with prior interim analyses and our valuation. We are highly encouraged to see Reolysin perform well by one key measure in this cancer form."
Neil Maruoka, Canaccord Genuity (9/9/13) "Oncolytics Biotech Inc. reported positive response rate data from its phase 2 study of Reolysin in squamous cell carcinoma of the lung. Results showed that 92% of patients demonstrated disease control (stable disease or better). . .we see key randomized data on the horizon and we continue to recommend risk-tolerant investors accumulate the stock ahead of these potential near-term catalysts. . .the company has adequate cash on hand. . .ending the quarter with cash and cash equivalents of $38.2M, which represents approximately 19 months of cash at projected burn."
The Life Sciences Report Interview with Jim Letourneau (8/15/13) "A good firm in the oncolytic virus space is called Oncolytics Biotech Inc. The company is based in Alberta and has been around for a very long time. Oncolytics makes a human reovirus, called Reolysin, that it can inject into tumors to kill cancerous cells. Oncolytics has had some good results with head-and-neck tumors, and is conducting ongoing phase 2 clinical trials with partial results released. The criticism is the company is a bit selective in what trial results it chooses to release. But regardless, it has raised a lot of money." More >
Andy Batts, Seeking Alpha (8/9/13) "The strongest argument in favor of the Oncolytics Biotech Inc. investment thesis is that Reolysin is expected to work on some of the most prevalent forms of the disease, including lung, colorectal, prostate, ovarian, breast and pancreatic cancers. . .the company looks sound with sufficient cash on balance sheet for daily operating activities as well as funding clinical trial programs until the end of 2014 or early 2015. . .Oncolytics is very late in the development stage of its manufacturing process, which I feel is a major strength."
The Life Sciences Report Interview with Greg Wade (8/8/13) "There are quite a few catalysts in H2/13 for Oncolytics Biotech Inc. The phase 3 head-and-neck cancer data are going to read out in Q3/13. The company has a pancreatic cancer study going on, and we might see some early data in that before the end of the year. With each of these studies we're going to start to see the first randomized data that will help us to get a view on how Reolysin is really doing. . .I think a lot of investors have taken a disciplined approach with this stock, preferring to wait to see randomized data prior to embracing the reovirus approach. That, combined with peers doing well, has led investors to sell the one that's not going up and buy the others. With these upcoming data, which we expect will be positive, Oncolytics will have the opportunity to work for investors. . .the head-and-neck cancer study—the larger randomized trial—is the most powerful [catalyst]. Positive data there would be very well received. But the pancreatic cancer study is also randomized. Both could be meaningful."
