Oncolytics Biotech Inc. Reports Data from Randomized Phase 2 Study of REOLYSIN in Ovarian Cancer --Intent-to-Treat Analysis Shows Statistically Significant Reduction in Tumour Burden as Measured by CA-125-- CALGARY

Oncolytics Biotech Inc. Reports Data from Randomized Phase

2 Study of REOLYSIN in Ovarian Cancer

--Intent-to-Treat Analysis Shows Statistically

Significant Reduction in Tumour Burden as Measured by CA-125--

CALGARY, March 21, 2016 /CNW/ - Oncolytics Biotech

Inc. (TSX: ONC) (OTCQX: ONCYF) (FRA: ONY) ("Oncolytics" or the "Company") today announced an update for a randomized

Phase II clinical trial of its lead product, REOLYSIN , in combination with paclitaxel in patients with ovarian

cancer (GOG-0186H). The study is being sponsored by the US National Cancer Institute ("NCI"). The update includes data

from a Gynecologic Oncology Group (GOG) study summary report, and follows a presentation made by the principal investigator regarding

the study at the Society of Gynecologic Oncology's Annual Meeting on Women's Cancer, which runs from March 19-22 in San Diego,

Response Using CA-125 Measurements by Treatment Among all

Source: GOG Study Summary Report

The Company performed an intent-to-treat analysis of tumour

response, as assessed by CA-125 antigen levels, which showed statistically significantly higher full response rates and stable

disease or better rates in the test arm versus the control arm. The rate of full responses in the test arm was 9.26%, compared

with 1.85% in the control arm (p = 0.0196). The rate of stable disease or better in the test arm was 44.44%, compared with 24.08%

in the control arm (p = 0.0096). The response rates were defined using a modified Rustin's criteria. CA-125 levels are commonly

used in clinical practice to assess response in ovarian cancer patients.

Response rates as measured by RECIST were performed on patients

with measurable disease (n = 68 (of 108)). The proportion responding on the test arm was 17% whereas the proportion responding

on the control arm was 20%.

An analysis of progression free survival ("PFS")

stratified by measurable disease and platinum-free interval (test arm: n = 54, 43 events (progressions), and control arm: n = 54,

48 events) was performed and demonstrated a median PFS of 4.4 months for the test arm, and 4.3 months for the control arm.

An interim analysis of overall survival ("OS") (test

arm: n = 54, 32 events (deaths), and control arm: n = 54, 32 events) was performed and demonstrated a median OS of 12.9 months

for the test arm, and 15.0 months for the control arm. The OS was an interim analysis, as 44 (41%) patients out of a total

of 108 patients were alive at the time of analysis. Given the number of patients still alive on the test and control arms with

current survival less than the median, final median OS results are expected to change.

"This is one of a total of six randomized Phase II studies

with REOLYSIN that were designed and sponsored by third parties. The results from these studies will determine

clinical targets, endpoints, and study designs for follow on and registration studies conducted by Oncolytics. In the case of this

ovarian cancer study, we are pleased that REOLYSIN has demonstrated a statistically significant reduction in tumour

burden in ovarian cancer patients as measured by CA-125 levels," said Dr. Brad Thompson, President and CEO of Oncolytics.

"This adds to our results in other indications that have shown improvement in tumour responses. In order to further our understanding

of how REOLYSIN interacts with the immune system, we hope, in conjunction with the principal investigator, to analyze

the PD-1 and CD8+ T lymphocyte levels of patients on entry and correlate these with overall survival and progression

Study Design Summary

The study (GOG-0186H) is a randomized Phase 2 clinical trial of paclitaxel versus paclitaxel plus REOLYSIN in

patients with persistent or recurrent, ovarian, fallopian tube or primary peritoneal cancer. Patients received paclitaxel on days

1, 8 and 15 of each 28-day treatment cycle, with either REOLYSIN (test arm) or placebo (control arm) administered

on days 1 through 5. One hundred and eight patients were randomized (1:1, 54 patients in the control arm, 54 patients in the test

arm). The NCI study did not stratify on entry according to PD-L1 levels or infiltrating CD8+ T lymphocyte levels,

nor were either of those levels measured post-treatment. However, pre-treatment tumour biopsies were taken from the majority of

patients. The primary objectives are PFS and toxicity. The secondary objectives are median overall OS by treatment group, median

PFS by treatment group, and tumour response as measured by RECIST criteria and CA-125 antigen levels. The study was sponsored by

the US National Cancer Institute and conducted by the former GOG, now incorporated into NRG Oncology.

Analysis of the Relationship between Ovarian Cancer Patients'

Immune Status upon Study Entry and Survival

In order to further understand the effects of a patient's immune status prior to treatment with REOLYSIN on PFS

and OS, the principal investigator and the Company are working to quantify the levels of PD-L1 and CD8+ T lymphocytes

in tumours at the time of enrolment. The Company wishes to conduct this analysis to be able to determine what component of PFS

and OS is attributable to PD-L1 and CD8+ T lymphocyte levels on study entry, and what is attributable to REOLYSIN

The basis for this analysis is Hamanishi et al. (2007) (Programmed

cell death 1 ligand 1 and tumour-infiltrating CD8+ T lymphocytes are prognostic factors of human ovarian cancer. PNAS

104(9):3360-3365), which found that the overall survival rates and progression free survival rates for ovarian cancer patients

with high PD-L1 expression on entry were statistically significantly worse than those of patients with low PD-L1 expression on

entry. They also noted that the overall survival rates and progression free survival rates for ovarian cancer patients with high

intraepithelial CD8+ T lymphocyte counts on entry were statistically significantly better than those of patients with

low CD8+ T lymphocyte counts.

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 later-stage, randomized human trials in various indications 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 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act

of 1934, as amended. Forward-looking statements, including the Company's expectations related to the randomized Phase 2 study in

patients with ovarian cancer, future trials in this indication, and the Company's belief as to the potential of REOLYSIN

as a cancer therapeutic, 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 tolerability of REOLYSIN outside a controlled test, the success and timely completion of clinical studies and

trials, the Company's ability to successfully commercialize REOLYSIN , uncertainties related to the research, development

and manufacturing of pharmaceuticals, changes in technology, general changes to the economic environment and uncertainties related

to the regulatory process. 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 should

consider statements that include the words "believes", "expects", "anticipates", "intends",

"estimates", "plans", "projects", "should", or other expressions that are predictions of

or indicate future events or trends, to be uncertain and forward-looking. 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

SOURCE Oncolytics Biotech Inc.

For further information: NATIONAL Equicom, Nick Hurst, 800

6th Ave. SW, Suite 1600, Calgary, Alberta T2P 3G3, Tel: 403.218.2835, Fax: 403.218.2830, nhurst@national.ca; NATIONAL Equicom,

Michael Moore, San Diego, CA, Tel: 858.886.7813, mmoore@national.ca; Dian Griesel, Inc., Susan Forman, 335 West 38th Street, 3rd

Floor, New York, NY 10018, Tel: 212.825.3210, Fax: 212.825.3229, sforman@dgicomm.com

CO: Oncolytics Biotech Inc.

CNW 17:00e 21-MAR-16