Oncolytics Biotech, Inc. (USA) (ONCY): This Promising Biotech Can Triple

Page 1 of 2

Cancer is one of the deadliest challenges that humans face today. Different forms of cancer have taken millions of lives all around the world. According to studies, every year approximately 7.5 million patients are diagnosed with cancer. This  presents a massive commercial opportunity for healthcare companies making anti-cancer drugs.

Recent studies have revealed that viruses are the best way to treat cancers. Some specific viruses attack the cancer cells in the upper body which results in an immune response against these infected cells. As all cancer therapies aim to reduce cancer cells, viruses automatically become a unique method of targeting and eliminating cancer cells.

Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY) is working on a formulation of the reovirus which can be used to target cancer cells without serious harm to the body. Research shows that Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY)’s formulation of the reovirus replicates particularly well in cancer cells which have an activated RAS (a cellular signaling pathway that is involved in cell growth and differentiation).

The company is targeting a number of different cancer forms, and initial trial data is hopeful. Any conclusive evidence of Reolysin success, even in a single form of cancer, will make Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY) a goldmine because it would imply that it will also be useful in other RAS activated cancers.

The opportunity

Every year millions are diagnosed with cancer, and there is still no comprehensive treatment for this life threatening disease. According to research, the cancer drug market is almost $80 billion and will be worth $100 billion by 2015. Almost 67% of all cancers are RAS-activated which is a testament to the true potential of Reolysin.

Reolysin has already attracted attention, not only from the investment community, but also from the medical research community. The American Association of Cancer Research has shown a lot of interest in Reolysin, and the body is working with Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY) to bring this treatment to patients. It is providing both funding and support for various trials of Reolysin.

If you’re an investor looking for big long term winners, Motley Fool co-founder David Gardner’s picks have frequently trounced the market. How? Because he’s always on the lookout for revolutionary stocks and recommends them before Wall Street catches on to their disruptive potential. If you’re interested in how David discovers his winners, click here to get instant access to a personal tour behind David’s Supernova service.

Pipeline

Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY) is using a shotgun approach to test the viability of Reolysin as a cancer treatment. It is targeting a number of different RAS activated cancers simultaneously. The company has 6 treatments in Phase II trials and one in Phase III trials. The most important results are those from Phase III; REO-018 for Head and Neck cancer.

This is the only trial nearing completion and will provide the first conclusive evidence of Reolysin’s usefulness. Therefore, it will be solely responsible for shaping market perception on the entire Reolysin range.

Reolysin Phase II and Phase II Trials
Phase II Phase III
OSU-07022 – Patients with Metastatic Ovarian, Peritoneal and Fallopian Tube Cancers REO 018- Head & Neck Cancer
IND 211- Non-Small Cell Lung Cancer
OSU-10045- Pancreatic Cancer
RIND 209- Prostate Cancer
IND 210- Colorectal Cancer
IND 213- Breast Cancer

The initial trial results from Reo-108 have been hopeful. In this trial, Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY) administered Reolysin in combination with paclitaxel and carboplatin, to patients with refractory head and neck cancer. The mid-trial results show that the regime is effective with 86% showing reduction/stabilization in tumor size as compared to only 67% in the control group. These results indicate positive end-results for Phase III. The market should expect Phase III results by year-end, and any positive announcements can trigger mammoth rallies.

Page 1 of 2