Oncolytics Biotech: New Emerging Cancer Play? (ONCY)
Oncolytics Biotech Inc. (NASDAQ: ONCY) is a small biotech based in Canada which many traders have not heard of. The company has announced interim results of a Phase II study of intravenous REOLYSIN® in patients with sarcomas metastatic to the lung (lung cancer).
The company presented data at ASCO over the weekend entitled “A Phase II Study of Intravenous REOLYSIN in the Treatment of Patients with Bone and Soft Tissue Sarcomas Metastatic to the Lung.”
The results demonstrate on an interim basis that the treatment has been well tolerated to date, with 8 of 16 evaluable patients experiencing stable disease for periods ranging from two to more than ten 28-day cycles.
The company had previously announced that the third patient treated in the study was demonstrated to have stable disease by RECIST criteria for more than six months as measured by CT scan. A PET scan taken at the same time showed that any residual mass was metabolically inert. While this is based upon a small target group, this is also a tiny company that could see major rewards and major returns if this can show impressive numbers in larger test groups.
Shares are up about 7% at $2.31 today after almost 1-hour of trading. Its 52-week adjusted trading range is $1.44 to $2.77. Its normal trading volume is 41.850 shares and it has already more than doubled its normal trading volume. This one is probably too thin for CNBC to pick up today and with under a $100 million market cap it might avoid it entirely.
The company does have a small balance sheet but also has ample liquidity to fund itself for roughly three years or more at current cash burn rates.
Jon Ogg
June 2, 2008