CALGARY, March 6 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(TSX:ONC, NASDAQ:ONCY) (“Oncolytics” or the “Company”) today reported its
financial results for the year ended December 31, 2007.
“2007 was our most productive year to date, marking a significant
expansion of the Company’s clinical trial program for REOLYSIN(R) with Phase
II studies and combination drug therapy studies being expanded and initiated,”
said Dr. Brad Thompson, President and CEO of Oncolytics. “This activity was
supported by further advances in our preclinical development program,
manufacturing, and intellectual property.”
Selected Highlights:
Clinical Trial Results Presented
--------------------------------
- Final results from our Phase I U.K. systemic administration trial, and
our U.S. Phase I systemic administration trial at ASCO;
- Positive interim results from our U.K. Phase Ia/Ib combination
REOLYSIN(R) and radiation trial;
Clinical Trial Progress
-----------------------
- Commenced patient enrolment in three combination REOLYSIN(R) and
chemotherapy trials in the U.K.;
- Commenced patient enrolment in a U.S. Phase II trial for patients with
various sarcomas that have metastasized to the lung;
- U.S. National Cancer Institute (NCI) filed a protocol with the U.S.
Food and Drug Administration (FDA) to conduct a Phase II melanoma
trial with REOLYSIN(R);
- Approval to begin a Phase I combination REOLYSIN(R) and
cyclophosphamide trial in the U.K.;
- In January 2008, the NCI filed a protocol with the U.S. FDA to conduct
a Phase I/II ovarian, peritoneal and fallopian tube cancer trial;
- In January 2008, met the criteria to expand to full enrolment of 52
patients in our U.S. Phase II sarcoma trial;
Manufacturing
-------------
- Completed scale up of our manufacturing process to the 40-litre level
and investigated further increases in scale to the 100-litre level;
Financial and Intellectual Property
-----------------------------------
- Completed a public offering that added gross proceeds of $13.8 million
to our financial reserves; and,
- Secured an additional eight U.S, patents and one Canadian patent,
bringing our current total to more than 165 patents issued worldwide;
“We expect 2008 to be an outstanding year as we move ahead with our Phase
II program and begin to focus our efforts in the clinical program in key
indications,” said Thompson. “With solid preclinical and Phase I results, a
scalable manufacturing process, a comprehensive intellectual property
portfolio and the financial resources to support our Phase II program, we are
well positioned for an exciting and productive 2008.”
Oncolytics Biotech Inc.
BALANCE SHEETS
As at December 31
2007 2006
$ $
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ASSETS
Current
Cash and cash equivalents 6,715,096 3,491,511
Short-term investments 18,498,733 24,122,237
Accounts receivable 80,085 84,003
Prepaid expenses 260,300 638,540
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25,554,214 28,336,291
Property and equipment 201,103 149,596
Intellectual property 5,026,540 5,079,805
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30,781,857 33,565,692
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 2,821,227 2,616,421
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Alberta Heritage Foundation loan - 150,000
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Commitments and contingency
Shareholders' equity
Share capital
Authorized: unlimited
Issued: 41,180,748 (2006 - 36,520,748) 92,759,665 83,083,271
Warrants 5,346,260 4,216,740
Contributed surplus 10,376,962 8,529,326
Deficit (80,522,257) (65,030,066)
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27,960,630 30,799,271
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30,781,857 33,565,692
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Oncolytics Biotech Inc.
STATEMENTS OF LOSS AND DEFICIT
For the periods ended December 31
Cumulative
from inception
on April 2,
1998 to
December 31,
2007 2006 2005 2007
$ $ $ $
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Revenue
Rights revenue - - - 310,000
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- - - 310,000
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Expenses
Research and
development 11,315,088 10,535,689 9,308,977 54,536,282
Operating 3,987,688 3,630,144 3,083,372 20,758,269
Stock based
compensation 539,156 403,550 64,104 4,704,805
Foreign
exchange loss 8,862 35,270 253,608 657,710
Amortization
- intellectual
property 962,427 874,043 786,459 4,999,261
Amortization
- capital assets 40,714 52,637 69,532 448,397
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16,853,935 15,531,333 13,566,052 86,104,724
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Loss before the
following 16,853,935 15,531,333 13,566,052 85,794,724
Interest income (1,211,744) (1,233,809) (783,456) (6,014,749)
Gain on sale of
BCY LifeSciences
Inc. - - (765) (299,403)
Loss on sale of
Transition
Therapeutics
Inc. - - - 2,156,685
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Loss before
income taxes 15,642,191 14,297,524 12,781,831 81,637,257
Future income
tax recovery - - - (1,115,000)
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Net loss and
comprehensive
loss for the
period 15,642,191 14,297,524 12,781,831 80,522,257
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Basic and
diluted loss
per share (0.39) (0.39) (0.39)
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Oncolytics Biotech Inc.
STATEMENTS OF CASH FLOWS
For the periods ended December 31
Cumulative
from inception
on April 2,
1998 to
December 31,
2007 2006 2005 2007
$ $ $ $
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OPERATING
ACTIVITIES
Net loss and
comprehensive
loss for the
period (15,642,191) (14,297,524) (12,781,831) (80,522,257)
Add/(deduct)
non-cash items
Amortization
- intellectual
property 962,427 874,043 786,459 4,999,261
Amortization
- capital
assets 40,714 52,637 69,532 448,397
Stock based
compensation 539,156 403,550 64,104 4,704,805
Other non-cash
items - - 224,508 1,383,537
Net change in
non-cash working
capital 530,300 811,922 584,766 2,435,221
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Cash used in
operating
activities (13,569,594) (12,155,372) (11,052,462) (66,551,036)
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INVESTING ACTIVITIES
Intellectual
property (852,498) (842,610) (1,033,035) (6,351,778)
Capital assets (92,221) (35,837) (61,309) (715,569)
Purchase of
short-term
investments (949,496) (1,035,427) (22,195,253) (49,068,963)
Redemption of
short-term
investments 6,573,000 13,808,000 6,656,746 30,151,746
Investment in
BCY LifeSciences
Inc. - - 7,965 464,602
Investment in
Transition
Therapeutics
Inc. - - - 2,532,343
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Cash provided by
(used in)
investing
activities 4,678,785 11,894,126 (16,624,886) (22,987,619)
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FINANCING ACTIVITIES
Proceeds from
exercise of
stock options
and warrants 51,000 241,400 3,384,787 15,259,468
Proceeds from
private
placements - - 15,395,402 38,137,385
Proceeds from
public
offerings 12,063,394 - - 42,856,898
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Cash provided
by financing
activities 12,114,394 241,400 18,780,189 96,253,751
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Net increase
(decrease) in
cash and cash
equivalents
during the
period 3,223,585 (19,846) (8,897,159) 6,715,096
Cash and cash
equivalents,
beginning of
the period 3,491,511 3,511,357 12,408,516 -
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Cash and cash
equivalents,
end of the
period 6,715,096 3,491,511 3,511,357 6,715,096
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Cash interest
received 1,392,866 940,100 993,097
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To view the Company’s Financial Statements and Management’s Discussion and
Analysis, please see the Company’s 2007 Annual Filings which will be available
on www.sedar.com and www.oncolyticsbiotech.com.
About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the
development of oncolytic viruses as potential cancer therapeutics.
Oncolytics’ clinical program includes a variety of Phase I/II and Phase II
human trials using REOLYSIN(R), its proprietary formulation of the human
reovirus, alone and in combination with radiation or chemotherapy. For further
information about Oncolytics please visit www.oncolyticsbiotech.com
This press release contains forward-looking statements, within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements, including the Company’s belief as to the potential
of REOLYSIN(R) as a cancer therapeutic; the Company’s expectations as to the
success of its research and development programs in 2008 and beyond, the
Company’s planned expansion, the value of the additional patents and
intellectual property; the Company’s expectations related to the applications
of the patented technology; the ability of the technology to strengthen the
core technology; the Company’s expectations as to adequacy of its existing
capital resources; the design, timing, success of planned clinical trial
programs and the Company’s planned expansion of such programs; and other
statements related to anticipated developments in the Company’s business and
technologies involve known and unknown risks and uncertainties, which could
cause the Company’s actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include, among
others, the availability of funds and resources to pursue research and
development projects, the efficacy of REOLYSIN(R) as a cancer treatment, the
success and timely completion of clinical studies and trials, the Company’s
ability to successfully commercialize REOLYSIN(R), uncertainties related to
the research and development of pharmaceuticals, uncertainties related to the
regulatory process and general changes to the economic environment. Investors
should consult the Company’s quarterly and annual filings with the Canadian
and U.S. securities commissions for additional information on risks and
uncertainties relating to the forward-looking statements. Investors are
cautioned against placing undue reliance on forward-looking statements. The
Company does not undertake to update these forward-looking statements.
SOURCE Oncolytics Biotech Inc.
Released March 6, 2008