Oncolytics Biotech Inc.

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 tumour defence mechanisms. Malignant (cancerous) tumours can perform many unique cellular processes that differentiate them from normal cells which prevents tumour cell defeat by the immune system. 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 (most of which are currently being tested in phase II clinical trials) that will support the immune system in a more powerful fight against cancer.

Oncolytics Biotech represents a new type of medicine known as precision medicine in which the company takes the patient's genome into account during drug production to reduce the chance of immunological rejection, resulting in a higher success rate. 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. It is delivered intravenously and specifically targets cells that are Ras-activated, a cellular pathway that allows rapid division. While approximately 1/3 of cancers are Ras-activated, the remaining 2/3 cannot be made to burst, which means not all patients can be treated using Pelareorep.

Oncolytics Biotech has 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. Currently, Oncolytics Biotech is conducting experiments on breast cancer cells using Pelareorep and Pfizer's drug Bavencio (Avelumab).

Introduction:

Operation: Cutting-Edge Research and Development in Oncolytic Virotherapy

At the forefront of the battle against cancer, Oncolytics Biotech Inc. operates on the cutting edge of oncolytic virotherapy research and development. The company's operations revolve around harnessing the power of viruses to selectively target and destroy cancer cells while sparing healthy tissues. Through a meticulous approach, Oncolytics Biotech's team of scientists, physicians, and industry experts works tirelessly to develop innovative oncolytic viruses that exploit the vulnerabilities of cancer cells.

Mission: Transforming Lives by Redefining Cancer Treatment

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.

Please note that the above paragraphs are generated based on the information available on the official website of Oncolytics Biotech Inc. as of my knowledge cutoff in September 2021. For the most up-to-date and accurate information, please refer to the company's official communications and documents.

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.

Risks Related to the Companies Operations

• As a clinical stage pharmaceutical company, the prospects of Oncolytics Biotech is regarded as speculative, it is impossible to predict whether new therapeutics will ultimately prove to be safe and effective in humans or whether necessary and sufficient data can be developed through the clinical trial process to support a successful product application and approval
• Their current product in development, Pelareorep, is in it's R&D stage for human application, the riskiest stage for a company in the biotechnology industry
• If they are unable to establish that Pelareorep is a safe, effective treatment for cancer, they may be required to abandon further development of the product and develop a new business strategy

Risks related to the ability to grow the business

• If a product is approved for sale, product manufacturing at a commercial scale, and significant sales to end users at a commercially reasonable price may not be successful

• There can be no assurance that adequate funds will be generated to continue development or will ever achieve significant revenues or profitable operations

Risks related to government laws and regulations

• Human clinical trials must demonstrate that the product is safe for human use and that the product shows efficacy in order to obtain regulatory approvals for products being developed for human use, and to achieve commercial success

• In developing a pharmaceutical product, there is a reliance on employees, contractors, consultants and collaborators, and other third-party relationships, including the ability to obtain appropriate product liability insurance. There can be no assurance that this reliance and these relationships will continue as required

Risks related to the ownership of the company's common stock

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

Relative Valuation

A comparable company analysis is undertaken using key metrics of Price-to-Book Ratio and EV/R&D Ratio, involving other companies operating in the biopharmaceutical sector, particularly those focusing on the development of oncology treatments.

Note that Oncolytics anticipates profitability only upon commercial viability of Pelareorep, which renders usual comparing metrics like P/E ratio unavailable.

	Market Data ($K)					Financial Data ($K)								Valuation (x)
Company	Ticker	Price	Shares Out	Market Cap	TEV	Revenue	EBITDA	EBIT	Net Income	Assets	Liabilities	Book Value	R&D Exp.	P/B	EV/R&D
Oncolytics Biotech Inc.	TSX:ONC	$2.78	65701	178090	156580	0	-20628	-20699	-19093	27585	8003	19582	11864	9.09x	13.20x
TME Pharma	PAR:ALTME	$1.6	5300	8662	8074	0	12551	12028	15910	5620	6327	-707		-12,25x