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!Oncolytics Biotech Inc.[[File:Screenshot 2023-07-26 at 22.20.30.png|center|thumb|222x222px]]
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|'''Type'''                                              Public Listed Company
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|'''Traded as'''                                    TSX : ONC
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|'''Founded in'''                                  1998
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|'''Founder'''                                        Matt Coffey (President & CEO)
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|'''Industry'''                                        Biotechnology & Biopharmaceutical
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|'''Area served'''                                  US and Canada predominantly
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|'''Product(s)'''                                    Pelareorep ; Several Clinical Research ongoing
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|'''Headquarters'''                              Calgary, Canada
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|'''Market Cap (in CAD mm)'''          $251 mm                     
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|'''52 week High/Low'''                      4.49/1.33
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|'''Number of Employees'''              29 (as of 2023)
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|'''Website'''                                        https://www.oncolyticsbiotech.com/
|}


== Summary ==
== Summary ==
Oncolytics Biotech is a Canadian development-stage biopharmaceutical company that focuses on the discovery and development of pharmaceutical products for cancer treatment, specifically with the aim of weakening tumours. Oncolytics Biotech aims to use immunotherapeutics - a branch of biological therapies that use synthetic substances to activate the immune system for stronger responses. This approach proposes many new treatments that will support the immune system in a more powerful fight against cancer. The company's lead product is Pelareorep, simply put, Pelareorep is an oncolytic virus that causes tumour cells to burst and activates multiple immune system entities.
Oncolytics Biotech is a Canadian development-stage biopharmaceutical company that focuses on the discovery and development of pharmaceutical products for cancer treatment, specifically with the aim of weakening tumour defence mechanisms. Oncolytics Biotech aims to use immunotherapeutics - a branch of biological therapies that use synthetic substances to activate the immune system for stronger responses. This approach proposes many new treatments that will support the immune system in a more powerful fight against cancer. The company's lead product is Pelareorep, simply put, Pelareorep is an oncolytic virus that causes tumour cells to burst and activates multiple immune system entities.


Oncolytics Biotech has also decided to embark on a co-developmental journey with Merck KGaA and Pfizer to combine Pelareorep with Paclitaxel, a chemotherapy medication, and Avelumab, an anti-cancer antibody medication. This combination is being tested because oncolytic viruses, such as Pelareorep, have the potential to enhance existing cancer treatments like Paclitaxel and Avelumab, leading to the elimination of resistant cancer cells and reducing cancer relapses. Oncolytics Biotech is conducting experiments on breast cancer cells using Pelareorep and Pfizer's drug Bavencio (Avelumab).
Oncolytics Biotech has also decided to embark on a co-developmental journey with Merck KGaA and Pfizer to combine Pelareorep with Paclitaxel, a chemotherapy medication, and Avelumab, an anti-cancer antibody medication. This combination is being tested because oncolytic viruses, such as Pelareorep, have the potential to enhance existing cancer treatments like Paclitaxel and Avelumab, leading to the elimination of resistant cancer cells and reducing cancer relapses. Oncolytics Biotech is conducting experiments on breast cancer cells using Pelareorep and Pfizer's drug Bavencio (Avelumab).
On this page, we have included an analysis of Oncolytics Biotech regarding financial valuations, in-depth product analysis, competitor analysis and Risk.


== Operations: ==
== Operations: ==
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Oncolytics Biotech Inc. is driven by a powerful mission: to transform the lives of cancer patients by redefining the way cancer is treated. With a deep commitment to advancing oncolytic virotherapy, the company aims to provide more effective and personalized treatment options that maximize therapeutic outcomes. By leveraging the body's own immune system and developing targeted therapies, Oncolytics Biotech seeks to revolutionize the field of oncology and improve patient outcomes worldwide.
Oncolytics Biotech Inc. is driven by a powerful mission: to transform the lives of cancer patients by redefining the way cancer is treated. With a deep commitment to advancing oncolytic virotherapy, the company aims to provide more effective and personalized treatment options that maximize therapeutic outcomes. By leveraging the body's own immune system and developing targeted therapies, Oncolytics Biotech seeks to revolutionize the field of oncology and improve patient outcomes worldwide.


== Product<ref>https://pubmed.ncbi.nlm.nih.gov/25693885/</ref> ==
== Product ==
Oncolytics’ core product is '''Pelareorep,''' a cutting-edge intravenously delivered immunotherapeutic agent aiming to treat solid tumours and hematological malignancies'''.''' Oncolytics Biotech. is testing Pelareorep as a potential treatment as the immune system has difficulty recognising and destroying malignant cancerous cells. It can be used alone or for more successful results, in combination with other chemotherapeutic drugs such as Paclitaxel<ref>https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4923331/</ref>, or immunotherapies such as CAR T, targeting a large market audience.   
Oncolytics’ core product is '''Pelareorep,''' a cutting-edge intravenously delivered immunotherapeutic agent aiming to treat solid tumours and hematological malignancies'''.''' Oncolytics Biotech. is testing Pelareorep as a potential treatment as the immune system has difficulty recognising and destroying malignant cancerous cells. It can be used alone or for more successful results, in combination with other chemotherapeutic drugs such as Paclitaxel, or immunotherapies such as CAR T, targeting a large market audience.   


Cancer cells (tumour cells) are unique in comparison to other cells in the body as they can rapidly multiply due to their ability to carry out a cell signalling pathway, namely the '''RAS-activated pathway'''<ref>https://doi.org/10.1016/B978-0-12-394295-1.00013-5</ref>. As a proprietary isolate of the naturally occurring, non-pathogenic double-stranded RNA (dsRNA) virus reovirus, Pelareorep can target this pathway. '''Reoviruses''' are a group of RNA double stranded viruses possessing the ability to recognise unique glycans on cancerous cells via the σ1R protein to allow immune system enhancement. The RAS-activated pathway required for Pelareorep to function is only present in cancerous cells, this includes some of the most common cancers such as lung and breast cancer.   
Cancer cells (tumour cells) are unique in comparison to other cells in the body as they can rapidly multiply due to their ability to carry out a cell signalling pathway, namely the '''RAS-activated pathway'''. As a proprietary isolate of the naturally occurring, non-pathogenic double-stranded RNA (dsRNA) virus reovirus, Pelareorep can target this pathway. '''Reoviruses''' are a group of RNA double stranded viruses possessing the ability to recognise unique glycans on cancerous cells via the σ1R protein to allow immune system enhancement. The RAS-activated pathway required for Pelareorep to function is only present in cancerous cells, this includes some of the most common cancers such as lung and breast cancer.   


Its mechanism of action involves the activation of both the innate and adaptive immune systems while weakening tumor defense mechanisms<ref>https://www.oncolyticsbiotech.com/technology/posters-publications</ref>. This effect enhances the immune system's ability to combat cancer, rendering tumors more susceptible to a diverse range of oncology treatments. Pelareorep is injected intravenously, once it interacts with a RAS-activated cancer cells it rapidly multiplies which causes:
Its mechanism of action involves the activation of both the innate and adaptive immune systems while weakening tumor defense mechanisms. This effect enhances the immune system's ability to combat cancer, rendering tumors more susceptible to a diverse range of oncology treatments. Pelareorep is injected intravenously, once it interacts with a RAS-activated cancer cells it rapidly multiplies which causes:


* Release of cytokines (innate)
* Release of cytokines (innate)
* Activation of Natural Killer cells (innate)
* Activation of Natural Killer cells (innate)
* Dendritic cell activation  (innate)
* Dendritic cell activation  (innate)
* '''T cell education and activation'''<ref>https://d1io3yog0oux5.cloudfront.net/_8c13c7b0608db4d5d85624e790b574c9/oncolyticsbiotech/db/343/2603/pdf/2022+AWARE-1+SITC+Final.pdf</ref> (adaptive)
* '''T cell education and activation''' (adaptive)
* Tumour cell lysis  
* Tumour cell lysis  
* Activation of the interferon-gamma (IFN-γ) signalling pathway
* Activation of the interferon-gamma (IFN-γ) signalling pathway


After the cell has burst all of the daughter Pelareorep cells are released to continue the process in surrounding cancer cells with the same glycans, until all cancerous cells have been defeated.  
After the cell has burst all of the daughter Pelareorep cells are released to continue the process in surrounding cancer cells with the same glycans, until all cancerous cells have been defeated.  
The Oncolytic Virus Therapy market is projected to experience substantial growth, with an estimated value of USD 29 million by 2028, compared to its previous value of USD 6 million in 2021. The market is expected to grow at a compound annual growth rate (CAGR) of 24.9% from 2022 to 2028<ref>https://www.marketwatch.com/press-release/oncolytic-virus-therapy-market-demand-share-report-2023-2030-2023-05-22</ref>.


Pelareorep has been clinically tested in partnership with Canadian Cancer Trials Group for pancreatic, breast, head, neck, prostate, lung, colorectal, bladder and ovarian cancers. Breast and pancreatic cancer tests have shown statistically significant results and have moved to Phase III clinical trials, on track for licence enabling studies. The clinical tests have also shown '''low death rates and less adverse side effects''' in comparison to chemotherapy. Side effects are: chills, fever, headache, cough, myalgia, runny nose, sore throat, fatigue, lymphopenia or neutropenia all for less than 6 hours.  
Pelareorep has been clinically tested in partnership with Canadian Cancer Trials Group for pancreatic, breast, head, neck, prostate, lung, colorectal, bladder and ovarian cancers. Breast and pancreatic cancer tests have shown statistically significant results and have moved to Phase III clinical trials, on track for licence enabling studies. The clinical tests have also shown '''low death rates and less adverse side effects''' in comparison to chemotherapy. Side effects are: chills, fever, headache, cough, myalgia, runny nose, sore throat, fatigue, lymphopenia or neutropenia all for less than 6 hours.  
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* Selectively destroys tumour cells, not normal, healthy cells
* Selectively destroys tumour cells, not normal, healthy cells
* It has a predictive biomarker- peripheral T-cell clonality
* It has a predictive biomarker- peripheral T-cell clonality
Pelareorep is manufactured at a commercial scale under a commercial supply agreement with '''MilliporeSigma''' (formerly Sigma-Aldrich)<ref>https://www.oncolyticsbiotech.com/technology/manufacturing</ref>. Currently, Pelareorep is mainly supplied to Canada and the US, however the company is looking to expand to other countries with 17 pending patent applications.  
Pelareorep is manufactured at a commercial scale under a commercial supply agreement with '''MilliporeSigma''' (formerly Sigma-Aldrich). At the moment, Pelareorep is mainly supplied to Canada and the US, however the company is looking to expand to other countries with 17 pending patent applications.  


Currently the price of Pelareorep is unknown as it isn't officially a marketed drug, but it is likely to be equivalent to the price of Pfizer's Paclitaxel at '''$18 for a supply of 5 millilitres.'''
Currently the price of Pelareorep is unknown as it isn't officially a marketed drug, but it is likely to be equivalent to the price of Pfizer's Paclitaxel at '''$18 for a supply of 5 millilitres.'''
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'''Angela Holtham, MBA,''' is a '''Director''' at Oncolytics. She is currently the Senior Vice President and  Chief Financial Officer of Canadian subsidiary of Nabisco Inc. She has also been the Vice President, Finance and Chief Financial Officer in the Ontario-based Hospital for Sick Children.     
'''Angela Holtham, MBA,''' is a '''Director''' at Oncolytics. She is currently the Senior Vice President and  Chief Financial Officer of Canadian subsidiary of Nabisco Inc. She has also been the Vice President, Finance and Chief Financial Officer in the Ontario-based Hospital for Sick Children.     
== Historical Financials ==
This section of the report covers the financials of Oncolytics Biotech from the last 5 years.


== Major Stakeholders in Oncolytics Biotech:- <ref>https://www.capitaliq.com/CIQDotNet/Ownership/CompanySummary.aspx?CompanyId=1340759</ref> ==
== Major Stakeholders in Oncolytics Biotech:- <ref>https://www.capitaliq.com/CIQDotNet/Ownership/CompanySummary.aspx?CompanyId=1340759</ref> ==
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== Risks<ref>https://ir.oncolyticsbiotech.com/all-sec-filings/content/0001129928-23-000008/oncyf-20221231.htm</ref> ==
== Risks ==
As with any investment, investing in Oncolytics Biotech carries a level of risk. Overall, based on the key risks highlighted below, the degree of risk associated with an investment in Oncolytics Biotech is very high.
As with any investment, investing in Oncolytics Biotech carries a level of risk. Overall, based on the key risks highlighted below, the degree of risk associated with an investment in Oncolytics Biotech is very high.


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* Market prices for securities of biotechnology companies generally are volatile, and may or may not move in a manner consistent with the progress made__INDEX__
* Market prices for securities of biotechnology companies generally are volatile, and may or may not move in a manner consistent with the progress made__INDEX__


== Discounted Cash Flow ==
A discounted cash flow was undertaken to provide a valuation for Oncolytics Biotech by forecasting future cash flows over a specific period and estimating a terminal value, which represents the business's value beyond that period. The projected cash flows are then discounted back to their present value using the company's weighted average cost of capital (WACC). The sum of the present values of the future cash flows and terminal value provides an estimate of the company's intrinsic value.
The table below represents the Unlevered Free Cash Flow (FCF) data for Oncolytics Biotech from 2018 to 2027. The company experienced negative FCF in the early years (2018-2021) but improved in 2022 with a lower negative value. The projected FCF for the years 2023 to 2027 shows a shift to positive values, indicating expected growth and profitability in the future.
{| class="wikitable"
|+
!Fiscal Year
!2018
!2019
!2020
!2021
!2022
!2023E
!2024E
!2025E
!2026E
!2027E
|-
|Unlevered Free Cash Flow
| -14,851
| -21,330
| -19,107
| -20,303
| -5,839
| -16,160
| -18,505
| -23,404
|13,507
|126,192
|-
|Projection Year
|
|
|
|
|
|1
|2
|3
|4
|5
|-
|Present Value of FCF
|
|
|
|
|
| -14,966
| -15,872
| -18,591
|9,937
|85,976
|}
Oncolytics Biotech has an enterprise value of 1,807,057 units and an equity value of 1,792,207 units with a WACC of 7.98%. The implied share price is 31 units, showing a significant increase compared to the current share price of 2.83 units, with a remarkable 991.32% change.
{| class="wikitable"
!WACC
|7.98%
|-
!Sum of PV of FCF
|46,483
|-
!Growth rate
|4.50%
|-
!Terminal Value
|2,584,090
|-
!Present Value of Terminal Value
|1,760,574
|-
!Enterpise Value
|1,807,057
|-
!(+) cash
|8,620
|-
!(-) Debt
|23,470
|-
!Equity Value
|1,792,207
|-
!Diluted Shares Outstanding
|58,030
|-
!Implied share price
|31
|-
!Current share price
|2.83
|-
!% change in share price
|991.32%
|}


== Relative Valuation==
== Relative Valuation==
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! colspan="2" |Valuation (x)
! colspan="2" |Valuation (x)
|-
|-
!Company
|Company
!Ticker
|Ticker
! Price
| Price
!Shares Out
|Shares Out
!Market Cap
|Market Cap
! TEV
| TEV
!Revenue
|Revenue
!EBITDA
|EBITDA
! EBIT
| EBIT
!Net Income
|Net Income
!Assets
|Assets
!Liabilities
|Liabilities
!Book Value  
|Book Value  
!R&D Exp.
|R&D Exp.
! P/B
| P/B
! EV/R&D
| EV/R&D
|-
|-
|<u>Oncolytics Biotech Inc.</u>
|<u>Oncolytics Biotech Inc.</u>
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|Helix BioPharma Corp.
|Helix BioPharma Corp.
|Helix BioPharma Corp., an immune-oncology company in Canada, is developing L-DOS47 and V-DOS47 for non-small cell lung cancer treatment. They have collaboration agreements with Moffitt Cancer Center to investigate pharmacodynamics, benefits of combination therapy, and with and University Hospital Tuebingen to assess therapeutic response in cancer models expressing CEACAM6.  
|Helix BioPharma Corp., an immune-oncology company in Canada, is developing L-DOS47 and V-DOS47 for non-small cell lung cancer treatment. They have collaboration agreements with Moffitt Cancer Center to investigate pharmacodynamics, benefits of combination therapy, and with and University Hospital Tuebingen to assess therapeutic response in cancer models expressing CEACAM6.  
|}
{| class="wikitable"
|+
!Oncolytics Biotech Inc plc Valuation
!Value
|-
|Implied Enterprise Value
|156,580
|-
|Implied Market Value
|156,580
|-
|Shares Outstanding
|65,701
|-
|Implied Value Per Share
|2.38
|-
|Average
|2.51
|-
|Current share price
|2.78
|-
|Difference
|10.76%
|}
|}




== References ==
== References<ref>https://pubmed.ncbi.nlm.nih.gov/25693885/</ref> ==
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