Edgar Filing: ONCOLYTICS BIOTECH INC

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of March 2008

Commission File Number 000-31062

Oncolytics Biotech Inc.

(Translation of registrant’s name into English)

Suite 210, 1167 Kensington Crescent NW
Calgary, Alberta, Canada T2N 1X7

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F o		Form 40-F þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Oncolytics Biotech Inc. (Registrant)



Date: March 6, 2008	By:	/s/ Doug Ball Doug Ball Chief Financial Officer

210, 1167 Kensington Crescent N.W.
Calgary, Alberta
Canada T2N 1X7

FOR IMMEDIATE RELEASE

Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2007

CALGARY, AB, March 6, 2008 — Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) (“Oncolytics” or the “Company”) today reported its financial results for the year ended December 31, 2007.

“2007 was our most productive year to date, marking a significant expansion of the Company’s clinical trial program for REOLYSIN^® with Phase II studies and combination drug therapy studies being expanded and initiated,” said Dr. Brad Thompson, President and CEO of Oncolytics. “This activity was supported by further advances in our preclinical development program, manufacturing, and intellectual property.”

Selected Highlights:

Clinical Trial Results Presented

	•		Final results from our Phase I U.K. systemic administration trial, and our U.S. Phase I systemic administration trial at ASCO;

	•		Positive interim results from our U.K. Phase Ia/Ib combination REOLYSIN^® and radiation trial;

Clinical Trial Progress

	•		Commenced patient enrolment in three combination REOLYSIN^® and chemotherapy trials in the U.K.;

	•		Commenced patient enrolment in a U.S. Phase II trial for patients with various sarcomas that have metastasized to the lung;

	•		U.S. National Cancer Institute (NCI) filed a protocol with the U.S. Food and Drug Administration (FDA) to conduct a Phase II melanoma trial with REOLYSIN^®;

	•		Approval to begin a Phase I combination REOLYSIN^® and cyclophosphamide trial in the U.K.;

	•		In January 2008, the NCI filed a protocol with the U.S. FDA to conduct a Phase I/II ovarian, peritoneal and fallopian tube cancer trial;

•

In January 2008, met the criteria to expand to full enrolment of 52 patients in our U.S. Phase II sarcoma trial;

Manufacturing

•

Completed scale up of our manufacturing process to the 40-litre level and investigated further increases in scale to the 100-litre level;

Financial and Intellectual Property

	•		Completed a public offering that added gross proceeds of $13.8 million to our financial reserves; and,

	•		Secured an additional eight U.S., patents and one Canadian patent, bringing our current total to more than 165 patents issued worldwide;

“We expect 2008 to be an outstanding year as we move ahead with our Phase II program and begin to focus our efforts in the clinical program in key indications,” said Thompson. “With solid preclinical and Phase I results, a scalable manufacturing process, a comprehensive intellectual property portfolio and the financial resources to support our Phase II program, we are well positioned for an exciting and productive 2008.”

Oncolytics Biotech Inc.

BALANCE SHEETS

As at December 31


	2007			2006
	$			$

ASSETS
Current
Cash and cash equivalents		6,715,096			3,491,511
Short-term investments		18,498,733			24,122,237
Accounts receivable		80,085			84,003
Prepaid expenses		260,300			638,540

		25,554,214			28,336,291

Property and equipment		201,103			149,596

Intellectual property		5,026,540			5,079,805


		30,781,857			33,565,692


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current
Accounts payable and accrued liabilities		2,821,227			2,616,421

Alberta Heritage Foundation loan		—			150,000


Commitments and contingency

Shareholders’ equity
Share capital
Authorized: unlimited
Issued: 41,180,748 (2006 — 36,520,748)		92,759,665			83,083,271
Warrants		5,346,260			4,216,740
Contributed surplus		10,376,962			8,529,326
Deficit		(80,522,257	)		(65,030,066	)

		27,960,630			30,799,271


		30,781,857			33,565,692

Oncolytics Biotech Inc.

STATEMENTS OF LOSS AND DEFICIT

For the periods ended December 31


										Cumulative
										from inception
										on April 2,
										1998 to
										December 31,
	2007			2006			2005			2007
	$			$			$			$


Revenue
Rights revenue		—			—			—			310,000

		—			—			—			310,000


Expenses
Research and development		11,315,088			10,535,689			9,308,977			54,536,282
Operating		3,987,688			3,630,144			3,083,372			20,758,269
Stock based compensation		539,156			403,550			64,104			4,704,805
Foreign exchange loss		8,862			35,270			253,608			657,710
Amortization — intellectual property		962,427			874,043			786,459			4,999,261
Amortization — capital assets		40,714			52,637			69,532			448,397

		16,853,935			15,531,333			13,566,052			86,104,724


Loss before the following		16,853,935			15,531,333			13,566,052			85,794,724

Interest income		(1,211,744	)		(1,233,809	)		(783,456	)		(6,014,749	)

Gain on sale of BCY LifeSciences Inc.		—			—			(765	)		(299,403	)

Loss on sale of Transition Therapeutics Inc.		—			—			—			2,156,685


Loss before income taxes		15,642,191			14,297,524			12,781,831			81,637,257

Future income tax recovery		—			—			—			(1,115,000	)


Net loss and comprehensive loss for the period		15,642,191			14,297,524			12,781,831			80,522,257


Basic and diluted loss per share		(0.39	)		(0.39	)		(0.39	)

Oncolytics Biotech Inc.

STATEMENTS OF CASH FLOWS

For the periods ended December 31


										Cumulative
										from inception
										on April 2,
										1998 to
										December 31,
	2007			2006			2005			2007
	$			$			$			$

OPERATING ACTIVITIES
Net loss and comprehensive loss for the period		(15,642,191	)		(14,297,524	)		(12,781,831	)		(80,522,257	)
Add/ (deduct) non-cash items
Amortization — intellectual property		962,427			874,043			786,459			4,999,261
Amortization — capital assets		40,714			52,637			69,532			448,397
Stock based compensation		539,156			403,550			64,104			4,704,805
Other non-cash items		—			—			224,508			1,383,537
Net change in non-cash working capital		530,300			811,922			584,766			2,435,221

Cash used in operating activities		(13,569,594	)		(12,155,372	)		(11,052,462	)		(66,551,036	)


INVESTING ACTIVITIES
Intellectual property		(852,498	)		(842,610	)		(1,033,035	)		(6,351,778	)
Capital assets		(92,221	)		(35,837	)		(61,309	)		(715,569	)
Purchase of short-term investments		(949,496	)		(1,035,427	)		(22,195,253	)		(49,068,963	)
Redemption of short-term investments		6,573,000			13,808,000			6,656,746			30,151,746
Investment in BCY LifeSciences Inc.		—			—			7,965			464,602
Investment in Transition Therapeutics Inc.		—			—			—			2,532,343

Cash provided by (used in) investing activities		4,678,785			11,894,126			(16,624,886	)		(22,987,619	)


FINANCING ACTIVITIES
Proceeds from exercise of stock options and warrants		51,000			241,400			3,384,787			15,259,468
Proceeds from private placements		—			—			15,395,402			38,137,385
Proceeds from public offerings		12,063,394			—			—			42,856,898

Cash provided by financing activities		12,114,394			241,400			18,780,189			96,253,751


Net increase (decrease) in cash and cash equivalents during the period		3,223,585			(19,846	)		(8,897,159	)		6,715,096

Cash and cash equivalents, beginning of the period		3,491,511			3,511,357			12,408,516			—

Cash and cash equivalents, end of the period		6,715,096			3,491,511			3,511,357			6,715,096


Cash interest received		1,392,866			940,100			993,097

To view the Company’s Financial Statements and Management’s Discussion and Analysis, please see the Company’s 2007 Annual Filings which will be available on www.sedar.com and 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 Phase I/II and Phase II human trials using REOLYSIN^®, its proprietary formulation of the human reovirus, alone and in combination with radiation or chemotherapy. 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 2008 and beyond, the Company’s planned expansion, the value of the additional patents and intellectual property; the Company’s expectations related to the applications of the patented technology; the ability of the technology to strengthen the core technology; the Company’s expectations as to adequacy of its existing capital resources; the design, timing, success of planned clinical trial programs and the Company’s planned expansion of such 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.

FOR FURTHER INFORMATION PLEASE CONTACT:


Oncolytics Biotech Inc.	The Equicom Group	The Investor Relations Group
Cathy Ward	Nick Hurst	Erika Moran
210, 1167 Kensington Cr NW	325, 300 5^th Ave. SW	11 Stone St, 3rd Floor
Calgary, Alberta T2N 1X7	Calgary, Alberta T2P 3C4	New York, NY 10004
Tel: 403.670.7377	Tel: 403.538.4845	Tel: 212.825.3210
Fax: 403.283.0858	Fax: 403.237.6916	Fax: 212.825.3229
cathy.ward@oncolytics.ca	nhurst@equicomgroup.com	emoran@investorrelationsgroup.com

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