Oncolytics Biotech® Reports First Quarter 2023 Financial Results and Operational Highlights
Randomized phase 2 data from BRACELET-1 trial in HR+/HER2- metastatic breast cancer to be shared in an oral presentation at the American Society of Clinical Oncology (ASCO) Annual Meeting
Guidance on the registration paths for pelareorep in HR+/HER2- metastatic breast and first-line pancreatic cancer expected in H2 2023
Management hosting conference call and webcast today at 8:30 a.m. ET
"Our core programs in breast and pancreatic cancer are moving towards registrational studies with compelling clinical data and important milestones expected this year," said Dr. Matt Coffey, President and Chief Executive Officer. "The first of these milestones will come later this month when we report data from BRACELET-1, a randomized phase 2 trial expected to inform the design of a subsequent pivotal registrational study in HR+/HER2- metastatic breast cancer. Stakeholders across the breast cancer community have demonstrated a keen interest in this readout, which will add to a dataset that already includes statistically significant phase 2 results showing pelareorep's ability to drive a robust overall survival benefit in this indication. Notably, the BRACELET-1 abstract was selected for an oral presentation at the upcoming ASCO meeting, providing a highly prestigious venue to discuss the results with potential partners and the clinical community."
Dr. Coffey continued, "Looking into the second half of 2023, we expect to report updated results from GOBLET's first-line pancreatic cancer cohort and provide guidance on the optimal registration paths for our breast and pancreatic cancer programs. With these programs both targeting large markets with significant clinical unmet needs and supported by robust clinical proof-of-concept data, we believe confirming their paths towards approval will represent important value-creating events and substantially de-risk and maintain pelareorep's development pathway."
First Quarter and Subsequent Highlights
Breast Cancer Program
BRACELET-1 data to be shared in an oral presentation at the ASCO Annual Meeting
BRACELET-1 is designed to confirm and expand upon Oncolytics' prior positive clinical results for pelareorep in HR+/HER2- metastatic breast cancer and inform the design of a subsequent registrational study. These prior data include phase 1 results demonstrating pelareorep's single-agent activity, as well as randomized phase 2 data that showed a statistically significant near doubling of median overall survival in patients treated with pelareorep combined with paclitaxel compared to those treated with paclitaxel monotherapy. Additionally, data from early-stage HR+/HER2- breast cancer patients demonstrated pelareorep's ability to stimulate anti-tumor immunity, remodel tumor microenvironments, and potentially improve patient prognosis by decreasing the risk of cancer recurrence score.
BRACELET-1 includes cohorts evaluating paclitaxel monotherapy, paclitaxel plus pelareorep, and paclitaxel plus pelareorep in combination with avelumab in HR+/HER2- metastatic breast cancer. The trial was designed to enroll a total of 48 patients and is not powered to detect statistical significance. An abstract corresponding to the upcoming oral presentation will be published by ASCO on May 25, 2023, at 5:00 p.m. ET. The oral presentation will take place on June 3, 2023, during a session being held from 2:15 p.m. – 3:45 p.m. ET.
Additional Immunotherapeutic Opportunity
Upcoming ASCO poster on preclinical pelareorep-chimeric antigen receptor (CAR) T cell therapy combination program
The poster, titled "Efficacy of function-enhanced, re-activatable, dual-specific CAR T cells pre-loaded with oncolytic virus for immunotherapy of high-grade glioma," will be presented in Poster Hall A from 2:15 p.m. – 5:15 p.m. ET on June 3, 2023. The corresponding abstract will be published prior to the ASCO meeting, on May 25, 2023, at 5:00 p.m. ET.
The data to be presented at the ASCO meeting follow preclinical results published in Science Translational Medicine (STM), which showed pelareorep synergistically enhancing the efficacy of CAR T cell therapy in murine solid tumor models (link to PR, link to the paper). Oncolytics is currently advancing preclinical research collaborations evaluating pelareorep-CAR T cell combination therapies, one of which has generated results with a potential partner's own CAR T constructs that are in-line with those published in the STM publication.
Key Opinion Leader Webinar
Oncolytics will host a key opinion leader (KOL) webinar on June 5, 2023 at 8 a.m. ET, where KOLs and the Oncolytics management team will discuss recent data from the BRACELET-1 study. A live question and answer session will follow the formal presentation.
To register for the webinar, please click here.
Financial Highlights
- As of March 31, 2023, the Company reported
$29.7 million - The net loss for the first quarter of 2023 was
$6.4 million $6.8 million $0.10 $0.12 - Net cash used in operating activities for the three months ended March 31, 2023 was
$7.8 million $6.3 million - General and administrative expenses for the first quarter of 2023 were
$3.2 million $2.6 million - Research and development expenses for the first quarter of 2023 were
$3.5 million $3.7 million
2023 Anticipated Milestones and Catalysts
- Overall response rate and progression-free survival data from phase 2 BRACELET-1 metastatic breast cancer study: Q2 2023
- Preclinical data from the combination of pelareorep and CAR T cell therapy: Q2 2023
- Updated data in advanced/metastatic pancreatic ductal adenocarcinoma (PDAC) from the GOBLET study: H2 2023
- Update on the metastatic colorectal and anal cancer cohorts from the GOBLET study: H2 2023
- Guidance for the registration paths for HR+/HER2- metastatic breast cancer and advanced/metastatic PDAC: H2 2023
Webcast and Conference Call
Management will host a conference call for analysts and investors at 8:30 a.m. ET today, May 5, 2023. To access the call, please dial (888) 664-6383 (
ONCOLYTICS BIOTECH INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited)
(in thousands of Canadian dollars, except share amounts)
As at | March 31, | December 31, | |
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 15,872 | $ 11,666 | |
Marketable securities | 13,798 | 20,472 | |
Other receivables | 730 | 521 | |
Prepaid expenses | 3,861 | 3,025 | |
Total current assets | 34,261 | 35,684 | |
Property and equipment | 339 | 356 | |
Right-of-use assets | 501 | 296 | |
Prepaid expenses | 227 | 998 | |
Total assets | $ 35,328 | $ 37,334 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Accounts payable and accrued liabilities | $ 2,232 | $ 3,650 | |
Lease liabilities | 189 | 216 | |
Warrant derivative | 48 | 79 | |
Total current liabilities | 2,469 | 3,945 | |
Contract liability | 6,730 | 6,730 | |
Lease liabilities | 378 | 157 | |
Total liabilities | 9,577 | 10,832 | |
Commitments and contingencies | |||
Shareholders' equity | |||
Share capital Authorized: unlimited Issued: March 31, 2023 – 63,990,950 December 31, 2022 – 61,327,914 | 409,412 | 404,040 | |
Contributed surplus | 40,368 | 40,051 | |
Accumulated other comprehensive income | 659 | 662 | |
Accumulated deficit | (424,688) | (418,251) | |
Total shareholders' equity | 25,751 | 26,502 | |
Total liabilities and shareholders' equity | $ 35,328 | $ 37,334 |
ONCOLYTICS BIOTECH INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands of Canadian dollars, except share amounts)
For the three months ended March 31, | 2023 | 2022 | |
Expenses | |||
Research and development | $ 3,539 | $ 3,708 | |
General and administrative | 3,195 | 2,602 | |
Loss before the following | (6,734) | (6,310) | |
Change in fair value of warrant derivative | 31 | (13) | |
Foreign exchange gain (loss) | 1 | (474) | |
Interest income, net | 265 | 18 | |
Net loss | (6,437) | (6,779) | |
Other comprehensive loss items that may be reclassified to net loss | |||
Translation adjustment | (3) | (47) | |
Net comprehensive loss | $ (6,440) | $ (6,826) | |
Basic and diluted loss per common share | $ (0.10) | $ (0.12) | |
Weighted average number of shares (basic and diluted) | 62,344,544 | 56,576,462 |
ONCOLYTICS BIOTECH INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited)
(in thousands of Canadian dollars)
Share Capital | Warrants | Contributed Surplus | Accumulated Other Comprehensive Income | Accumulated Deficit | Total | ||||||
As at December 31, 2021 | $ 391,348 | $ 3,618 | $ 34,161 | $ 388 | $ (393,416) | $ 36,099 | |||||
Net loss and other comprehensive loss | — | — | — | (47) | (6,779) | (6,826) | |||||
Issued pursuant to stock option plan (notes 6, 7) | 19 | — | (7) | — | — | 12 | |||||
Issued pursuant to incentive share award plan (notes 6, 7) | 46 | — | (46) | — | — | — | |||||
Issued pursuant to "At the Market" Agreement (note 6) | 5,267 | — | — | — | — | 5,267 | |||||
Share issue costs (note 6) | (176) | — | — | — | — | (176) | |||||
Share-based compensation expense (note 7) | — | — | 639 | — | — | 639 | |||||
As at March 31, 2022 | $ 396,504 | $ 3,618 | $ 34,747 | $ 341 | $ (400,195) | $ 35,015 | |||||
As at December 31, 2022 | $ 404,040 | $ — | $ 40,051 | $ 662 | $ (418,251) | $ 26,502 | |||||
Net loss and other comprehensive loss | — | — | — | (3) | (6,437) | (6,440) | |||||
Issued pursuant to "At the Market" Agreement (note 6) | 5,552 | — | — | — | — | 5,552 | |||||
Share issue costs (note 6) | (180) | — | — | — | — | (180) | |||||
Share-based compensation expense (note 7) | — | — | 317 | — | — | 317 | |||||
As at March 31, 2023 | $ 409,412 | $ — | $ 40,368 | $ 659 | $ (424,688) | $ 25,751 |
ONCOLYTICS BIOTECH INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands of Canadian dollars)
For the three months ended March 31, | 2023 | 2022 | |
Operating Activities | |||
Net loss for the period | $ (6,437) | $ (6,779) | |
Depreciation - property and equipment | 21 | 24 | |
Depreciation - right-of-use-assets | 76 | 74 | |
Share-based compensation expense | 317 | 639 | |
Interest (income) expense, net | (96) | 24 | |
Unrealized foreign exchange (gain) loss | (124) | 410 | |
Change in fair value of warrant derivative | (31) | 13 | |
Change in non-cash working capital | (1,555) | (657) | |
Cash used in operating activities | (7,829) | (6,252) | |
Investing Activities | |||
Acquisition of property and equipment | (5) | (36) | |
Maturities of marketable securities | 6,674 | — | |
Cash provided by (used in) investing activities | 6,669 | (36) | |
Financing Activities | |||
Proceeds from exercise of stock options | — | 12 | |
Proceeds from "At the Market" equity distribution agreement | 5,372 | 5,091 | |
Payment of lease liabilities | (101) | (89) | |
Cash provided by financing activities | 5,271 | 5,014 | |
Increase (decrease) in cash and cash equivalents | 4,111 | (1,274) | |
Cash and cash equivalents, beginning of period | 11,666 | 41,262 | |
Impact of foreign exchange on cash and cash equivalents | 95 | (505) | |
Cash and cash equivalents, end of period | $ 15,872 | $ 39,483 |
About Oncolytics Biotech Inc.
Oncolytics is a biotechnology company developing pelareorep, an intravenously delivered immunotherapeutic agent. This compound induces anti-cancer immune responses and promotes an inflamed tumor phenotype -- turning "cold" tumors "hot" -- through innate and adaptive immune responses to treat a variety of cancers.
Pelareorep has demonstrated synergies with immune checkpoint inhibitors and may also be synergistic with other approved oncology treatments. Oncolytics is currently conducting and planning clinical trials evaluating pelareorep in combination with checkpoint inhibitors and targeted therapies in solid and hematological malignancies as it advances towards registration studies in metastatic breast cancer and pancreatic cancer. For further information, 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 and forward-looking information under applicable Canadian securities laws (such forward-looking statements and forward-looking information are collectively referred to herein as "forward-looking statements"). Forward-looking statements contained in this press release include statements regarding Oncolytics' belief as to the potential and benefits of pelareorep as a cancer therapeutic; our 2023 milestones and catalysts and the anticipated timing thereof and expected benefits therefrom, including the release of data in relation to our BRACELET-1 study in Q2 2023, our study on the combination of pelareorep and CAR T cell therapy in Q2 2023; our GOBLET study in H2 2023 and the release of guidance for the registration paths for HR+/HER2- metastatic breast cancer and advanced/metastatic PDAC in H2 2023; our plans to advance towards a registration study in metastatic breast cancer and pancreatic cancer; and other statements related to anticipated developments in Oncolytics' business and technologies. In any forward-looking statement in which Oncolytics expresses an expectation or belief as to future results or anticipated milestones and catalysts, such expectations or beliefs are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will be achieved. Such forward-looking statements involve known and unknown risks and uncertainties, which could cause Oncolytics' 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 pelareorep as a cancer treatment, the success and timely completion of clinical studies and trials, Oncolytics' ability to successfully commercialize pelareorep, uncertainties related to the research and development of pharmaceuticals, uncertainties related to the regulatory process and general changes to the economic environment. In particular, we may be impacted by business interruptions resulting from COVID-19 coronavirus, including operating, manufacturing supply chain, clinical trial and project development delays and disruptions, labour shortages, travel and shipping disruption, and shutdowns (including as a result of government regulation and prevention measures). It is unknown whether and how Oncolytics may be affected if the COVID-19 pandemic persists for an extended period of time. Additionally, general market conditions resulting from high inflation, high interest rates, the
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Company Contact Jon Patton Director of IR & Communication +1-858-886-7813 jpatton@oncolytics.ca | Investor Relations for Oncolytics Timothy McCarthy LifeSci Advisors +1-917-679-9282 tim@lifesciadvisors.com |
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