Calgary, AB, November 17, 2000 --- Oncolytics Biotech Inc. ("Oncolytics") (TSE:ONC) today reported its results for the third quarter and nine month period ended September 30, 2000.
For the third quarter, the total loss was $1,558,191 or $0.09 per share. For the first nine months of 2000 the total loss was $3,101,858 or $0.19 per share. As expected, the Company reported no revenue for the period, other than revenue derived from interest earned on its cash and investment balances - $248,829 for the third quarter and $645,265 for the nine month period - as its products are still under development.
"The company has continued to make substantial progress during the third quarter of 2000," said Mr. Douglas Ball, Chief Financial Officer of Oncolytics. "In addition to the progression of a Phase I trial on Reolysin®, and continuing research and development efforts towards a veterinary application for the reovirus, Oncolytics also concluded a private placement, raising $3,000,000 through the issuance of 244,898 common shares at $12.25 per share and received confirmation of the issuance of its first U.S. Patent (#6,110,461) covering the pharmaceutical use of the reovirus in the treatment of Ras-mediated cancers in mammals. During the quarter, the company was also pleased to report the addition of Mr. Bob Schultz, F.C.A. to the Board of Directors."
A second milestone payment of $1,000,000 was accrued as payable to the original shareholders of Oncolytics as a result of the issuance of the U.S. Patent. This accrual increased development expenses in the third quarter to $1,473,352, bringing total development expenses for the first nine months of 2000 to $3,102,697. Expenses associated with the costs of expanding the Corporation's market exposure through a broadened investor relations program, as well as additional staffing in place for the quarter, resulted in operating expenses for the third quarter 2000 of $268,570 for total year to date operating expenses of $585,709. The Company's total expenses for the first nine months of 2000 were $3,790,875 or $1,841,772 for the third quarter, primarily as a result of the milestone payments paid and accrued, and costs associated with the continuing clinical trial activities.
As at September 30, 2000, the Company's cash and cash equivalents balance was $18,761,195 as compared to $4,549,177 as at December 31, 1999.
Oncolytics is a biotechnology company whose focus is the development of the reovirus known as Reolysin® as a potential cancer therapeutic. The mammalian reovirus infects and kills cancer cells with an activated Ras pathway. Ras is an important component of a pathway controlling normal growth and differentiation of a cell and when activated, may account for a large proportion of all mammalian tumours. Researchers believe that targeting this pathway could have broad potential in the treatment of many cancers. Oncolytics researchers demonstrated that Reolysin® was selectively able to kill cancer cells with this particular activation and successfully demonstrated that the virus could kill human cancer cells in vitro derived from breast, prostate, pancreatic, and brain tumours, as well as being able to treat tumours successfully in a number of animal models. Oncolytics initiated a Phase I clinical trial on Reolysin® in June of 2000.
This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.