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Oncolytics Biotech® Reports 2018 Third Quarter Financial Results and Provides Corporate Update

Key Takeaway: Oncolytics Biotech reported its third quarter financial results for 2018, highlighting significant clinical advancements with pelareorep, an immuno-oncolytic virus. The company is preparing to initiate a registration study in metastatic breast cancer, leveraging its findings on immune response mechanisms. Management expressed optimism about the upcoming AWARE-1 study in collaboration with Roche's Tecentriq.

Market Sentiment Analysis

POSITIVE FACTORS

  • Progression into registration pathway for metastatic breast cancer.
  • Clinical data supports the effectiveness of pelareorep.
  • Management's confidence in upcoming studies and milestones.

CONCERNS & RISKS

  • Risks associated with the efficacy of pelareorep as a cancer treatment.
  • Uncertainties related to the regulatory process.

BiopharmaWatch Analysis

From our catalyst data and publicly available data · not financial advice
Best trade, last catalyst
+48%
120-day peak, hindsight
Typical move
7%
average across 3 past catalysts
Cash runway
~1 mo
High dilution risk
Lead asset
REOLYSIN
Phase 3 · Carcinoma, Squamous Cell of the Head and Neck

Full Press Release Details

- Checkpoint combination studies support progression into registration pathway for metastatic breast cancer and potential expansion of indications -

- Management to host webcast and conference call today at 8:30 a.m. ET -

CALGARY, Alberta and SAN DIEGO, Nov. 12, 2018 (GLOBE NEWSWIRE) -- Oncolytics Biotech®Inc. (Nasdaq: ONCY) (TSX: ONC), currently developing pelareorep, an intravenously delivered immuno-oncolytic virus, today announced financial results and operational highlights for the quarter ended September 30, 2018. All dollar amounts are Canadian unless otherwise noted.
“The clinical progress and mechanistic understandings achieved with pelareorep thus far in 2018 lay the ground work for a transformational 2019.  We continue to advance towards a registration study in metastatic breast cancer as we prepare to initiate our AWARE-1 window of opportunity clinical study with pelareorep and Roche’s checkpoint inhibitor, Tecentriq, in breast cancer patients,” said Dr. Matt Coffey, President and CEO of Oncolytics Biotech. “Although we originally believed that pelareorep acts foremost as a lytic agent directly killing tumor cells, we have learned pelareorep replicates efficiently in cancer cells to produce double stranded RNA and trigger an immune response to the tumor by stimulating and recruiting NK cells and T cells to target the tumor. This quarter we presented additional data confirming pelareorep stimulates expression of PD-L1 on tumor cells, thereby transforming those tumor cells into targets for the highly valued immuno-oncology checkpoint inhibitors.  This expanded focus on innate and adaptive immune response better allows us to prepare for our planned studies in metastatic breast cancer, to validate recently identified therapeutic biomarkers for pelareorep, and to efficiently explore the potential for pelareorep to extend the effectiveness of checkpoint inhibitors into additional patient  populations.”

Selectedhighlights since July 1, 2018

Clinical Updates

Corporate Updates

Anticipated Milestones

* Guidance provided by principle investigator

Financial

Webcast and ConferenceCallOncolytics management will host a conference call for Analysts and Institutional Investors at 8:30 a.m. ET today, Monday, November 12, 2018. The live call may be accessed by dialing (888) 231-8191 for callers in North America.  Overseas callers should contact investor relations for the toll-free dial information for their country.  A replay of this call will be available approximately two hours after the call is ended at 855-859-2056, using the replay code 6463668 and will be available for six months.
A live audio webcast of the call will be accessible on the Investor Relations page of Oncolytics' website at www.oncolyticsbiotech.com and will be archived for six months.
ONCOLYTICS BIOTECH INC.INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(unaudited)
As at September 30,2018$ December 31,2017$
Assets
Current assets
Cash and cash equivalents 16,214,347 11,836,119
Contract receivable 4,767,100
Other receivables 56,895 37,726
Prepaid expenses 1,450,030 1,176,063
Total current assets 17,721,272 17,817,008
Non-current assets
Property and equipment 428,588 333,441
Total non-current assets 428,588 333,441
Total assets 18,149,860 18,150,449
Liabilities And Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities 2,239,514 3,684,023
Contract liability 927,400 1,545,645
Other liabilities 76,529
Total current liabilities 3,243,443 5,229,668
Non-current liabilities
Contract liability 5,802,887 4,636,935
Other liabilities 54,128
Total non-current liabilities 5,857,015 4,636,935
Total liabilities 9,100,458 9,866,603
Shareholders’ equity
Share capitalAuthorized: unlimitedIssued:September 30, 2018 – 16,915,325December 31, 2017 – 141,805,722 pre-consolidationDecember 31, 2017 – 14,926,840 post-consolidation 283,742,409 271,710,138
Warrants 3,617,570 3,617,900
Contributed surplus 27,894,420 27,028,238
Accumulated other comprehensive income 459,142 373,730
Accumulated deficit (306,664,139 ) (294,446,160 )
Total shareholders’ equity 9,049,402 8,283,846
Total liabilities and equity 18,149,860 18,150,449
ONCOLYTICS BIOTECH INC.INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS(unaudited)
Three MonthPeriodEndingSeptember30, 2018$ Three MonthPeriodEndingSeptember30, 2017$ Nine MonthPeriodEndingSeptember30, 2018$ Nine MonthPeriodEndingSeptember30, 2017$
Expenses
Research and development 1,929,405 1,726,726 6,909,713 6,913,470
Operating 1,468,262 1,309,607 4,869,617 4,054,450
Loss before the following (3,397,667 ) (3,036,333 ) (11,779,330 ) (10,967,920 )
Interest 61,880 31,759 109,308 96,637
Loss before income taxes (3,335,787 ) (3,004,574 ) (11,670,022 ) (10,871,283 )
Income tax (expense) recovery (79 ) 168 (547,957 ) 16
Net loss (3,335,866 ) (3,004,406 ) (12,217,979 ) (10,871,267 )
Other comprehensive (loss) income items that may be reclassified to net loss
Translation adjustment (49,238 ) (126,846 ) 85,412 (192,334 )
Net comprehensive loss (3,385,104 ) (3,131,252 ) (12,132,567 ) (11,063,601 )
Basic and diluted loss per common share (0.20 ) (0.20 ) (0.78 ) (0.80 )
Weighted average number of shares (basic and diluted) 16,540,612 14,685,871 15,646,117 13,625,411
ONCOLYTICS BIOTECH INC.INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY(unaudited)
Share Capital$ Warrants$ ContributedSurplus$ AccumulatedOtherComprehensiveIncome$ AccumulatedDeficit$ Total$
As at December 31, 2016 262,321,825 26,643,044 554,060 (278,829,309 ) 10,689,620
Net loss and other comprehensive loss (192,334 ) (10,871,267 ) (11,063,601 )
Issued pursuant to "At the Market" agreement 1,479,065 1,479,065
Issued pursuant to public offering 7,893,600 3,617,900 11,511,500
Issued pursuant to stock option plan 536,949 (193,509 ) 343,440
Share based compensation 438,044 438,044
Share issue costs (1,331,770 ) (1,331,770 )
As at September 30, 2017 270,899,669 3,617,900 26,887,579 361,726 (289,700,576 ) 12,066,298
As at December 31, 2017 271,710,138 3,617,900 27,028,238 373,730 (294,446,160 ) 8,283,846
Net loss and other comprehensive income 85,412 (12,217,979 ) (12,132,567 )
Issued pursuant to "At the Market" agreement 553,650 553,650
Issued pursuant to public offering 11,606,882 11,606,882
Issued pursuant to Common Stock Purchase Agreement 1,906,152 1,906,152
Issued pursuant to stock option plan 178,322 (66,635 ) 111,687
Issued pursuant to warrant agreement 1,747 (330 ) 1,417
Share based compensation 932,817 932,817
Share issue costs (2,214,482 ) (2,214,482 )
As at September 30, 2018 283,742,409 3,617,570 27,894,420 459,142 (306,664,139 ) 9,049,402
ONCOLYTICS BIOTECH INC.INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)
Three MonthPeriodEndingSeptember30, 2018$ Three MonthPeriodEndingSeptember30, 2017$ Nine MonthPeriodEndingSeptember30, 2018$ Nine MonthPeriodEndingSeptember30, 2017$
Operating Activities
Net loss for the period (3,335,866 ) (3,004,406 ) (12,217,979 ) (10,871,267 )
Depreciation - property and equipment 26,698 20,591 67,682 70,315
Share based compensation 236,607 148,447 932,817 438,044
Unrealized foreign exchange loss (gain) 82,643 (6,414 ) (19,702 ) (119,058 )
Onerous lease contract 67,588 67,588
Amortization - lease incentive liability 12,494 12,494
Net change in non-cash working capital (596,779 ) (331,590 ) 3,630,991 (1,186,142 )
Cash used in operating activities (3,506,615 ) (3,173,372 ) (7,526,109 ) (11,668,108 )
Investing Activities
Acquisition of property and equipment (40,094 ) (9,451 ) (120,156 ) (95,337 )
Redemption of short-term investments 2,088,800
Cash (used in) provided by investing activities (40,094 ) (9,451 ) (120,156 ) 1,993,463
Financing Activities
Proceeds from "At the Market" equity distribution agreement 733,171 520,315 1,292,698
Proceeds from public offering 10,188,526 10,366,098
Proceeds from Common Stock Purchase Agreement 1,143,361 1,143,361
Proceeds from exercise of options 87,777 48,090 111,687 343,440
Proceeds from exercise of warrants 1,417
Cash provided by financing activities 1,231,138 781,261 11,965,306 12,002,236
(Decrease) increase in cash (2,315,571 ) (2,401,562 ) 4,319,041 2,327,591
Cash and cash equivalents, beginning of period 18,741,347 16,676,298 11,836,119 12,034,282
Impact of foreign exchange on cash and cash equivalents (211,429 ) (241,092 ) 59,187 (328,229 )
Cash and cash equivalents, end of period 16,214,347 14,033,644 16,214,347 14,033,644
To view the Company's Fiscal 2018 Third Quarter Consolidated Financial Statements, related Notes to the Consolidated Financial Statements, and Management's Discussion and Analysis, please see the Company's filings, which will be available at www.sedar.com, www.sec.gov and on Oncolytics' website at http://www.oncolyticsbiotech.com/investor-centre/financials/.
About PelareorepPelareorep is a non-pathogenic, proprietary isolate of the unmodified reovirus: a first-in-class intravenously delivered immuno-oncolytic virus for the treatment of solid tumors and hematological malignancies. The compound induces selective tumor lysis and promotes an inflamed tumor phenotype through innate and adaptive immune responses to treat a variety of cancers and has been demonstrated to be able to escape neutralizing antibodies found in patients.
About Oncolytics Biotech Inc.Oncolytics is a biotechnology company developing pelareorep, an intravenously delivered immuno-oncolytic virus. The compound induces selective tumor lysis and promotes an inflamed tumor phenotype -- turning "cold" tumors "hot" -- through innate and adaptive immune responses to treat a variety of cancers. Oncolytics' clinical development program emphasizes three pillars: chemotherapy combinations to trigger selective tumor lysis and immuno-therapy and immune modulator (IMiD) combinations to produce innate and adaptive immune responses. Oncolytics is currently conducting and planning additional studies in combination with checkpoint inhibitors and targeted and IMiD therapies in solid and hematological malignancies, as it prepares for a phase 3 registration study in metastatic breast cancer. For further information, 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 and forward-looking information under applicable Canadian securities laws (such forward-looking statements and forward-looking information are collectively referred to herein as “forward-looking statements”). Forward-looking statements, including the Company's belief as to the potential and mode of action of REOLYSIN, also known as pelareorep, as a cancer therapeutic; the collaboration between Merck and USC using pelareorep, including the  timing, enrollment and potential benefits to the Company thereof; 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 pelareorep as a cancer treatment, the success and timely completion of clinical studies and trials, the Company's ability to successfully commercialize pelareorep, 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.
Company ContactMichael MooreVice President, Investor Relations & Corporate Communications858-886-7813mmoore@oncolytics.ca
Investor RelationsRobert UhlWestwicke Partners858-356-5932robert.uhl@westwicke.com Media ContactJason SparkCanale Communications619-849-6005jason@canalecomm.com

Frequently Asked Questions

What is pelareorep?

Pelareorep is an intravenously delivered immuno-oncolytic virus developed by Oncolytics Biotech.

What are the recent developments in Oncolytics Biotech?

The company is advancing towards a registration study in metastatic breast cancer.

When is the AWARE-1 study expected to start?

The AWARE-1 study is planned to initiate soon as part of their clinical strategy.

What financial results did Oncolytics report?

Oncolytics Biotech announced its third quarter financial results for 2018.

Last updated: Nov 12, 2018