Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2007



    CALGARY, March 6 /CNW/ - 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(R) 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(R) and radiation trial;

    Clinical Trial Progress
    -----------------------
    -  Commenced patient enrolment in three combination REOLYSIN(R) 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(R);

    -  Approval to begin a Phase I combination REOLYSIN(R) 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(R), 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(R) 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(R) as a cancer treatment, the
success and timely completion of clinical studies and trials, the Company's
ability to successfully commercialize REOLYSIN(R), 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.

    %SEDAR: 00013081E




For further information:

For further information: Oncolytics Biotech Inc., Cathy Ward, 210, 1167
Kensington Cr NW, Calgary, Alberta T2N 1X7, Tel: (403) 670-7377, Fax: (403)
283-0858, cathy.ward@oncolytics.ca; The Equicom Group, Nick Hurst, 325, 300
5th Ave. SW, Calgary, Alberta T2P 3C4, Tel: (403) 538-4845, Fax: (403)
237-6916, nhurst@equicomgroup.com; The Investor Relations Group, Erika Moran,
11 Stone St, 3rd Floor, New York, NY 10004, Tel: (212) 825-3210, Fax: (212)
825-3229, emoran@investorrelationsgroup.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890