Dec. 14, 2012 - Oncolytics Biotech Inc. (ONC.TO, ONCY) continued its rise on Friday a day after their excellent first endpoint Phase III Study data results for REOLYSIN®, a treatment for head and neck cancers. In addition to the $9 target price on ONCY maintained by Byron Capital, a Motley Fool article stated revenue potential for ONCY's drug will be $900M per year and could reach as high as $3 billion if REOLYSIN® achieves success as a multi-purpose drug.
A BioWorld article also outlines the bullish nature of this news for ONCY, as outlined by a quote from Douglas Miehm, an analyst for RBC Dominion Securities in his research report "support(s) a higher probability of success for final primary data points."
With a quote such as this on record, expect analyst upgrades to the already very bullish targets for the stock. Byron Capital's $9 target already sits at a near triple versus ONC.TO's Friday's close of $3.06 and ONCY's close of $3.10 but could rise along with RBC's target in reaction to this higher probability of success.
Further quotes from the BioWorld article:
"The endpoint checked tumor changes between the pre-treatment and first post-treatment scans, typically at six weeks, and stabilization was described – more stringently than in other accepted criteria – as zero percent growth.
"It's not good enough to have some growth," Thompson said. "The surgeons involved want shrinkage, period."
Of the 105 total patients with evaluable metastatic tumors, 86 percent (n = 50) of those in the test arm of the study exhibited tumor stabilization or shrinkage, compared with 67 percent of patients (n = 55) in the control arm.
"To be candid, I think all of us here were modestly surprised that we saw the degree of differentiation, the amount of shrinkage that we did at six weeks," Thompson said. "Reolysin is a pretty gentle agent when it comes to tumor shrinkage."
This gentle agent to enhancing cancerous tumor shrinkage could make ONCY shareholders quite rich in addition to the medical benefits it has within the cancer community.