Oncolytics Biotech Inc. Reports Preliminary Data from Randomized Phase II Study of REOLYSIN in Colorectal Cancer --REOLYSIN Demonstrates Increase in Objective Response Rates in Female Patients and in Patients with Liver

Oncolytics Biotech Inc. Reports Preliminary Data from Randomized

Phase II Study of REOLYSIN in Colorectal Cancer

--REOLYSIN Demonstrates

Increase in Objective Response Rates in Female Patients

and in Patients with Liver Metastases--

CALGARY, May 19, 2016 /CNW/ - Oncolytics Biotech Inc. ("Oncolytics"

or the "Company") (TSX: ONC) (OTCQX: ONCYF) (FRA: ONY) today announced preliminary data from a randomized Phase

II clinical trial of its lead product, REOLYSIN , in combination with FOLFOX-6 and bevacizumab (Avastin ) in patients with

advanced or metastatic colorectal cancer (IND 210). The study is being sponsored by the National Cancer Institute of Canada ("NCIC")

Clinical Trials Group ("CTG") at Queen's University in Kingston, Ontario. The preliminary analysis includes data

from an NCIC study summary report, and follows the release of an abstract to be presented at the American Society of Clinical Oncology

("ASCO") Annual Meeting, which will run from June 3-7, 2016 in Chicago, IL.

The abstract reported that the overall test arm had an objective

response rate of 52.9% (n=51) versus 34.6% (n=52) in the control arm (p=0.06). The Company conducted a pre-planned analysis of

patient responses by gender, as specified in the study protocol. The male patients in the test arm had an objective response rate

of 46.9% (n=32) versus 41.9% (n=31) in the control arm (p=0.6747). The female patients in the test arm had an objective response

rate of 63.2% (n=19) versus 23.8% (n=21) in the control arm (p=0.0054).

"We are encouraged by these preliminary data from the

NCIC study suggesting that the inclusion of REOLYSIN in the treatment combination may have a profound impact on

response rates for women with colorectal cancer," said Dr. Brad Thompson, President and CEO of Oncolytics Biotech Inc. "Various

immune-based therapies have demonstrated a profile where patients derive tumour response and overall survival benefit with limited

or no impact on progression free survival. REOLYSIN , as an oncolytic virotherapy, appears to be demonstrating a

similar profile in female patients with advanced or metatstatic colorectal cancer. This is a further example of our sponsored randomized

Phase II program identifying specific indications, patient populations and endpoints for examination in future trials to be conducted

by Oncolytics. Building on these findings, we intend to conduct a study in female metastatic colorectal cancer patients using this

treatment regimen combined with a checkpoint inhibitor."

Analysis of Patients with Liver Metastases

The Company conducted an additional analysis of all those patients (both male and female) with liver metastases, with or without

metastases to other sites. For patients who had metastases to the liver, those treated with REOLYSIN had objective

tumour response rates of 55% (n=40), versus 28.6% (n=42) for those who did not receive REOLYSIN (p=0.0077). For

the patients who did not have liver metastases (21 of the 103 patients), there was no statistically significant difference in response

rate (five of 11 in the test arm, versus 6 of 10 in the control arm).

"When cancer spreads to the liver, treatment becomes

more difficult, leading to a drop in response and survival rates," said Dr. Thompson. "Based on these randomized data,

we believe that REOLYSIN may have particular utility in those patients who have late-stage colorectal cancer with

Colorectal Cancer Clinical Program: Next Steps

Based on these results, Oncolytics has filed for a U.S. Phase II run-in study examining the treatment of female patients

with metastatic colorectal cancer with FOLFOX-6, bevacizumab, REOLYSIN , and the checkpoint inhibitor pembrolizumab

(KEYTRUDA ). Subject to confirmation of overall responses, liver metastases-specific responses, and immune marker

analyses, the Company intends to conduct a registration study using the modified therapeutic regime including pembrolizumab. This

will be the second clinical study that Oncolytics is conducting with the addition of a checkpoint inhibitor. Oncolytics is currently

conducting a standard of care, REOLYSIN , and pembrolizumab combination clinical study in patients with advanced

The abstract also noted that, of grade 3 or higher adverse events, there was less abdominal pain (3.5% versus 17.3%, p=0.02), more

hypertension (26.3% versus 3.8%, p=0.001) and more proteinuria (22.8% versus 1.9%, p=0.001) in the test arm than the control arm.

The study is an open-label, multi-institution, randomized, non-blinded, Phase 2 clinical study of patients with advanced or metastatic

colorectal cancer. Patients were randomized to receive either REOLYSIN FOLFOX-6, bevacizumab and REOLYSIN

(test arm) or FOLFOX-6 and bevacizumab alone (control arm). Patients in both arms received FOLFOX-6 and bevacizumab every 14 days,

with either REOLYSIN (test arm) or placebo (control arm) administered on days one through five of cycles 1, 2,

4, 6, 8 and alternate cycles thereafter. Approximately 50 response-evaluable patients were enrolled in each arm, after a six- to

nine-patient safety run-in.

The primary endpoint of the trial is progression free survival.

Secondary endpoints include changes in CEA levels, objective response rate, overall survival, quality of life, and the tolerability

and toxicity of the treatment combination. Other objectives include the measurement of molecular factors which may be prognostic

or predictive of response.

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 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including the

Company's expectations related to the randomized Phase II study in patients with colorectal 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 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.

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 06:30e 19-MAY-16