The head of Calgary-based Oncolytics Biotech Inc. says he isn’t rushing to look for new opportunities for his cancer therapeutics research company, but eventually plans to expand into other product areas after further trials on Oncolytics’ trademark drug Reolysin.
CEO Brad Thompson told shareholders at last week’s annual meeting that the company will also continue to work on developing a relationship with a major pharmaceutical company. U.S. pharma Pfizer Inc. terminated plans in January to help develop and market Oncolytic’s cancer-fighting therapy in animals.
Oncolytics has received the data from the Pfizer study, and says the safety and viral activity results were consistent with those obtained by the company’s own researchers.
Thompson noted at its current burn rate, the company has enough finances to support operations for at least two more years. “Certainly we will be mindful of our cash position, and seek opportunities when appropriate,” he added.
Oncolytics was formed in 1998 to explore the oncolytic capability of the reovirus, a live virus that preferentially replicates and attacks cancer cells without affecting healthy cells.
Thompson said the company will proceed with three clinical studies in the coming year, including a study to examine the drug’s affect on a particularly aggressive form of brain cancer.
He told shareholders he was relieved at the resolution of recent difficulties at SYNSORB Biotech, the largest shareholder of Oncolytics. SYNSORB owned a $53-million share of Oncolytics, its only liquid asset, when it announced late last year that it was terminating research into its anti-diarrhea drug and closing its Calgary manufacturing plant.
“That has had a depressive effect on our market ever since,” Thompson observed.
SYNSORB investors have now elected a new board of directors and approved a plan to distribute four million Oncolytics shares to SYNSORB shareholders. “(This resolution) has certainly taken a lot of time and energy for our board and management team to resolve it,” added Thompson.
