Oncolytics Biotech(R) Inc. Announces Second Quarter 2011 Results

CALGARY, AB, July 28, 2011 /PRNewswire/ – Oncolytics Biotech Inc. (TSX:ONC)
(NASDAQ:ONCY) (“Oncolytics” or the “Company”) today announced its
financial results and operational highlights for the quarter ended June
30, 2011.

“We continue to build upon and progress through our research and
development in an effort to maximize the future commercial potential of
REOLYSIN(®). In Q2, we focused our efforts on expanding our Phase III clinical
trial in head and neck cancer, and expanding our clinical trial program
by announcing a U.S. National Cancer Institute-sponsored clinical trial
in multiple myeloma,” said Dr. Brad Thompson, President and CEO of
Oncolytics. “We also received positive data from early stage studies in
metastatic colorectal and non-small cell lung cancer studies, and
secured a leading manufacturer for the clinical and commercial supply
of REOLYSIN(®), both significant steps forward in our plans to expand our development
program.”

Selected Highlights

Since April 1, 2011 the Company has announced:

Clinical Trial Results

        --  Interim data from a U.K. translational clinical trial (REO 013)
            investigating intravenous administration of REOLYSIN in
            patients with metastatic colorectal cancer prior to surgical
            resection of liver metastases. On initial histological analysis
            of the 10 treated patients, there was evidence of selective
            delivery of virus to tumour versus normal liver and viral
            replication in the majority (seven) of patients;
        --  A presentation covering interim preliminary results from a
            Phase 2 clinical trial using intravenous administration of
            REOLYSIN in combination with paclitaxel and carboplatin in
            patients with non-small cell lung cancer (NSCLC) with Kras or
            EGFR-activated tumours at the International Association for the
            Study of Lung Cancer World Conference on Lung Cancer. Response
            evaluation as of the date of presentation in 21 patients showed
            six partial responses (PR) (28.6%), 13 stable disease (SD)
            (61.9%), and two progressive disease (PD) (9.5%), translating
            into a clinical benefit rate (complete response (CR)+PR+SD) of
            90.5% and a response rate (CR+PR) of 28.6%;

Ongoing Clinical Program

        --  The Cancer Therapy Evaluation Program, Division of Cancer
            Treatment and Diagnosis, U.S. National Cancer Institute (NCI),
            which is part of the National Institutes of Health, has agreed
            to sponsor a Phase I study of REOLYSIN alone in patients with
            relapsed multiple myeloma;
        --  A commercial supply agreement with SAFC, a Division of
            Sigma-Aldrich Corporation, for the commercial manufacture of
            REOLYSIN. Under the terms of the agreement, SAFC will perform
            process validation of the product, will continue to supply
            clinical requirements and will supply commercial material upon
            approval of the product; and

Corporate

        --  The appointment of George M. Gill, MD as Chief Medical Officer.
            Dr. Gill has been Senior Vice President of Clinical Safety and
            Regulatory Affairs and an officer of Oncolytics since 2002.


                                  ONCOLYTICSBIOTECH INC.
                       CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                        (unaudited)

     

                                     June 30,   December 31,    January 1,
                                       2011         2010           2010
    As at,                               $            $              $

    Assets                                                                 

    Current                                                                
    assets

    Cash and cash                    46,640,231    39,296,682    32,448,939
    equivalents

    Short-term                        1,929,306     3,609,246     1,679,937
    investments

    Accounts                             51,421       284,988        64,787
    receivable

    Prepaid                             840,444       278,934       507,408
    expenses

    Total current                    49,461,402    43,469,850    34,701,071
    assets

                                                                           

    Non-current                                                            
    assets

    Property and                        228,751       226,911       208,320
    equipment

    Long term                           --       --       684,000
    investment

    Total                               228,751       226,911       892,320
    non-current
    assets

     

    Asset held                          --       735,681       --
    for sale

    Total assets                     49,690,153    44,432,442    35,593,391

                                                                           

    Liabilities And Shareholders' Equity                                   

                                                                           

    Current Liabilities                                                    

    Accounts payable and              4,186,139     2,500,682     4,226,933
    accrued liabilities

    Warrant liability                   --     5,536,800     1,023,051

    Total current liabilities         4,186,139     8,037,482     5,249,984

                                                                           

    Shareholders' equity                                                   

    Share capital                
      Authorized: unlimited
      Issued:
      June 30, 2011 -
    71,214,318
      December 31, 2010 -
    67,958,302
      January 1, 2010 -
    61,549,969                      177,179,742   155,439,610   131,908,274

    Warrants                          2,653,627     4,108,652     2,437,460

    Contributed surplus              19,397,121    19,399,489    13,734,743

    Accumulated other            
    comprehensive
      loss                            (194,991)     (156,660)       --

    Deficit                       (153,531,485) (142,396,131) (117,737,070)

    Total shareholders' equity       45,504,014    36,394,960    30,343,407

    Total Liabilities And            49,690,153    44,432,442    35,593,391
    Equity




                                   ONCOLYTICSBIOTECH INC.
                   CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
                                        (unaudited)

                                                             

                     ThreeMonth   ThreeMonth    SixMonth           Six
                    PeriodEnding PeriodEnding PeriodEnding, MonthPeriodEnding,
                      June 30,   June30, 2010 June30, 2011    June 30, 2010
                        2011          $             $               $
                         $

                                                                              

    Expenses                                                                  

    Research and       5,483,131    3,237,216     8,454,742          6,279,030
    development

    Operating          1,068,623    1,147,940     2,195,634          2,112,249

                       6,551,754    4,385,156    10,650,376          8,391,279

    Loss before      (6,551,754)  (4,385,156)  (10,650,376)        (8,391,279)
    the following

                                                                              

    Write down of
    asset
    available for
    sale               (735,681)      --     (735,681)            --

    Change in
    fair value of
    warrant
    liability            --      391,000        36,000          (150,489)

    Interest             123,197        9,304       214,703             19,123

    Loss before      (7,164,238)  (3,984,852)  (11,135,354)        (8,522,645)
    income taxes

                                                                              

    Income taxes         --      --       --            --

    Net loss         (7,164,238)  (3,984,852)  (11,135,354)        (8,522,645)

    Other
    comprehensive
    loss -
    translation
    adjustment          (75,211)       23,878      (38,331)          (121,029)

    Net              (7,239,449)  (3,960,974)  (11,173,685)        (8,643,674)
    comprehensive
    loss

    Basic and
    diluted loss
    per share             (0.10)       (0.06)        (0.16)             (0.14)

    Weighted
    average
    number of
    shares (basic
    and  diluted)     71,209,164   61,556,343    70,586,073         61,553,173




                                                ONCOLYTICS BIOTECH INC.
                                     CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                                                      (unaudited)

     

                                        For the six month period ending, June 30, 2011

                                                       Accumulated
                                                          Other
                      Share   Contributed             Comprehensive
                     capital    Surplus     Warrants     Income         Deficit   Total Equity

                         $           $           $             $             $            $

    As at         155,439,610  19,399,489   4,108,652     (156,660) (142,396,131)   36,394,960
    December 31,
    2010

                                                                                              

    Net loss and      --     --     --      (38,331)  (11,135,354) (11,173,685)
    comprehensive
    loss for the
    period

    Exercise of    21,487,080     -- (1,455,025)       --       --   20,032,055
    warrants

    Exercise of       253,052    (45,710)     --       --       --      207,342
    stock options

    Stock based       --      43,342     --       --       --       43,342
    compensation

    As at June    177,179,742  19,397,121   2,653,627     (194,991) (153,531,485)   45,504,014
    30, 2011

                                        For the six month period ending, June 30, 2010

                                                       Accumulated
                                                          Other
                      Share   Contributed             Comprehensive                   Total
                     capital    Surplus     Warrants     Income         Deficit      Equity

                         $           $           $             $             $           $

    As at January 131,908,274  13,734,743   2,437,460       -- (117,737,070)  30,343,407
    1, 2010

                                                                                             

    Net loss and      --     --     --     (121,029)   (8,522,645) (8,643,674)
    comprehensive
    loss for the
    period

    Expired           --   2,438,000 (2,438,000)       --       --     --
    warrants

    Exercise of        72,000    (18,000)     --       --       --      54,000
    stock options

    Stock based       --       2,428     --       --       --       2,428
    compensation

    Other             --     --         540       --       --         540

    As at June    131,980,274  16,157,171     --     (121,029) (126,259,715)  21,756,701
    30, 2010

                                                                                             




                                        ONCOLYTICS BIOTECH INC.
                                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                              (unaudited)

                                                            

                   Three Month   ThreeMonth    Six Month   SixMonthPeriodEnding,
                   PeriodEnding PeriodEnding PeriodEnding,     June 30, 2010
                   June 30,2011 June 30,2010 June 30, 2011           $
                        $            $             $

    Cash Flows                                                                  

    Operating                                                                   
    Activities

    Net loss for    (7,164,238)  (3,984,852)  (11,135,354)           (8,522,645)
    the period

                         29,992       14,621        47,267                29,506
    Amortization
    - property
    and
    equipment

      Stock              40,469        1,399        43,342                 2,428
    based
    compensation

      Change in         --    (391,000)      (36,000)               150,489
    fair value
    of warrant
    liability

      Write down        735,681      --       735,681               --
    of asset
    available
    for sale

      Unrealized         28,978    (293,534)       220,127              (74,546)
    foreign
    exchange
    loss (gain)

    Net change        1,417,496      384,452     1,357,514             (792,229)
    in non-cash
    working
    capital

    Cash used in    (4,911,622)  (4,268,914)   (8,767,423)           (9,206,997)
    operating
    activities

                                                                                

    Investing                                                                   
    Activities

    Redemption        1,679,940      --     1,679,940               --
    of
    short-term
    investments

    Acquisition        (33,831)     (39,851)      (49,107)              (43,498)
    of property
    and
    equipment

    Cash              1,646,109     (39,851)     1,630,833              (43,498)
    provided by
    (used in)
    investing
    activities

                                                                                

    Financing                                                                   
    Activities

    Proceeds             23,300       54,000    14,738,597                54,000
    from
    exercise of
    stock
    options and
    warrants

    Cash                 23,300       54,000    14,738,597                54,000
    provided by
    financing
    activities

                                                                                

    Increase        (3,242,213)  (4,254,765)     7,602,007           (9,196,495)
    (decrease)
    in cash

    Cash and         49,912,873   27,143,314    39,296,682            32,448,939
    cash
    equivalents,
    beginning of
    period

    Impact of
    foreign
    exchange on
    cash and
    cash
     
    equivalents        (30,429)      410,378     (258,458)                46,483

    Cash and         46,640,231   23,298,927    46,640,231            23,298,927
    cash
    equivalents,
    end of
    period



To view the Company’s Second Quarter 2011 Consolidated Financial
Statements, related Notes to Consolidated Financial Statements, and
Management’s Discussion and Analysis, please see the Company’s
quarterly filings which will be available on
www.sedar.com and on 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 human trials
including a Phase 3 trial in head and neck cancers using REOLYSIN, its
proprietary formulation of the human reovirus. 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 as a cancer therapeutic; the Company’s
expectations as to the success of its research and development programs
in 2011 and beyond, the Company’s planned operations, the value of the
additional patents and intellectual property; the Company’s
expectations related to the applications of the patented technology;
the Company’s expectations as to adequacy of its existing capital
resources; the design, timing, success of planned clinical trial
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 as a cancer treatment, the success and timely
completion of clinical studies and trials, the Company’s ability to
successfully commercialize REOLYSIN, 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, except as
required by applicable laws.

 

 

 

SOURCE Oncolytics Biotech Inc.