News Releases
ONCOLYTICS BIOTECH ANNOUNCES FIRST QUARTER 2002 RESULTS

CALGARY, AB, --- May 14, 2002 - Oncolytics Biotech Inc. ("Oncolytics") (TSX:ONC, NASDAQ:ONCY) today announced its financial results for the first quarter ended March 31, 2002. 

Highlights of the first quarter 2002 include:

• Favourable results from its Phase I human clinical trial;
• Initiation of a clinical trial for T2 prostate cancer;
• Approval from Health Canada to proceed with the Company’s Phase I/II human clinical trial for recurrent malignant glioma; and

Strengthened intellectual property through the issuance of a fourth U.S. patent and the first European patent covering the use of reovirus as a potential cancer therapeutic.


“During the quarter, we continued to build on the achievements made over the past year, making significant progress in protecting our intellectual property and advancing REOLYSIN® through our human clinical program,” said Dr. Brad Thompson, President and CEO of Oncolytics Biotech. “We are pleased with the progress being made thus far and will report our findings in as timely a manner as possible.”

Early in the quarter, Oncolytics announced that its agreement with Pfizer Inc. to develop the reovirus as an animal health care product had been terminated. Subsequent to the quarter’s end, the Company received the data from the Pfizer study. The safety and viral activity results were consistent with those seen by the Company in all its studies to date.

Financial Highlights (Canadian Dollars)

For the three months ended March 31, 2002, Oncolytics reported a net loss of $1.27 million or $0.07 per share, compared to a loss of $1.01 million or $0.06 per share for the same three-month period in 2001.

As its products are still under development, the Company reported no revenue for either three-month periods, other than revenue derived from interest earned on its cash and investment balances, which was $57,180 for the first three months of 2002 and $218,199 for the first three months of 2001. 

Research and development expenses totaled $871,519 for the three months ended March 31, 2002, as compared to $676,274 for the three months ended March 31, 2001. The quarterly increase in 2002 over 2001 is primarily attributable to the commencement of the Company’s first efficacy trial for prostate cancer, further refinement of the manufacturing process, additional toxicology studies and the applications to commence Phase I/II trials for recurrent malignant glioma in Canada and the U.S. These increased costs were partially offset by reductions resulting from the completion of the Company’s Phase I clinical trial in late 2001.

Operating expenses increased to $489,478 for the three months ended March 31, 2002, as compared to $473,795 for the three months ended March 31, 2001. The slight increase was associated with increased support of the research and development efforts, and the costs of expanding the Corporation’s market exposure offset by reductions from costs incurred in 2001 related to various activities including the Company’s listing on the small cap market of NASDAQ. 

Amortization for the three months ended March 31, 2002 increased to $131,612 as compared to $109,628 for the same period in 2001. The increase was primarily due to increased amortization of patent costs and leasehold improvements.

At March 31, 2002, the Company's cash balance was $12,017,795 and working capital was $11,157,632 as compared to cash balance of $14,970,756 and working capital of $12,769,203 as of December 31, 2001. 

About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the development of REOLYSIN®, its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics’ researchers have demonstrated that the reovirus is able to selectively kill human cancer cells in vitro that are derived from many types of cancer, including breast, prostate, pancreatic and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that there were no toxicology-related issues with the administration of the reovirus, and that the reovirus demonstrated activity in tumours injected with REOLYSIN®.

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 potential of REOLYSIN® as a cancer therapeutic, and the belief that Ras pathway has broad potential in the treatment of many cancers, 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

Click here for the complete First Quarterly Financial Statement.