Edgar Filing: ONCOLYTICS BIOTECH INC

Form 6-K

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of May 2003

Commission File Number 000-31062

Oncolytics Biotech Inc.
(Translation of registrant’s name into English)

Suite 210, 1167 Kensington Crescent NW
Calgary, Alberta, Canada T2N 1X7
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F		þ		Form 40-F		o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): .

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): .

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

TABLE OF CONTENTS


Signatures
First Quarter Highlights:
Financial Review
About Oncolytics Biotech Inc.
BALANCE SHEETS
Statements of Loss and Deficit
Statement of Cash Flows

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes		o		No		þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Oncolytics Biotech Inc. (Registrant)


Date May 22, 2003	By:	/s/ Douglas A. Ball

		Douglas A. Ball Chief Financial Officer


		210, 1167 Kensington Cr. N.W. Calgary, Alberta Canada T2N 1X7

FOR IMMEDIATE RELEASE

ONCOLYTICS BIOTECH ANNOUNCES 2003 FIRST QUARTER RESULTS

CALGARY, AB, — May 22, 2003 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) today announced its financial results for the three-month period ending March 31, 2003.

First Quarter Highlights:

	•		Announced positive interim results from the T2 prostate cancer trial;

	•		Successfully completed a program for the development of a commercial process to manufacture REOLYSIN®;

	•		Successfully completed a ninth animal toxicology study using systemic delivery of REOLYSIN®; and,

	•		Secured a sixth U.S. patent covering a method of manufacturing REOLYSIN®.

“During the quarter, we made further advancements in the development of REOLYSIN®,” said Dr. Brad Thompson, President and CEO of Oncolytics. “The Company achieved several important milestones.”

Financial Review

The Company incurred a net loss for the first quarter of 2003 of $1,114,314 compared to a net loss of $1,273,820 for the first quarter of 2002. Basic and diluted loss per common share decreased from $0.07 in the first quarter of 2002 to $0.05 for the first quarter of 2003.

During the first quarter of 2003, the Company incurred R&D expenses of $479,635 compared to $871,519 in the first quarter of 2002. R&D expenses decreased in the first quarter primarily due to a reduction in the costs associated with the development of a commercial process for the manufacturing of REOLYSIN®. The Company continued to incur R&D expenses as it studied the efficacy and safety of REOLYSIN® in its clinical trial program and completed its animal toxicology study examining systemic delivery of REOLYSIN®.

During the first quarter of 2003, the Company incurred operating expenses of $522,025 compared to $489,478 in the first quarter of 2002. Operating expenses for the first quarter of 2003 increased due to strategic additions to Oncolytics’ staff after the first quarter of 2002 and increased professional fees and filing costs associated with public company filing requirements.

The future income tax recovery of $161,905 recorded in the first quarter of 2002 related to the reversal of the Company’s future tax liability, as its future tax assets relating to non-capital losses, scientific research and development pools and other tax pools exceeded the value of the future tax liability. No similar recovery was recorded in the first quarter of 2003.

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of REOLYSIN®, its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics’ researchers have demonstrated that the reovirus is able to selectively kill human cancer cells in vitro that are derived from many types of cancer, including breast, prostate, pancreatic and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that REOLYSIN® was well tolerated and that the reovirus demonstrated activity in tumours injected with REOLYSIN®.

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 expectations as to progress in the clinical trial program and the Company’s belief as to the potential of REOLYSIN® as a cancer therapeutic, 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® as a cancer treatment, the success and timely completion of clinical studies and trials, the Company’s ability to successfully commercialize REOLYSIN®, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:


*For Canada:*	*For Canada:*	*For United States:*
Oncolytics Biotech Inc. Doug Ball 210, 1167 Kensington Cr NW Calgary, Alberta T2N 1X7 Tel: 403.670.7377 Fax: 403.283.0858 www.oncolyticsbiotech.com	The Equicom Group Joanna Longo 20 Toronto Street Toronto, Ontario M5C 2B8 Tel: 416.815.0700 ext. 233 Fax: 416.815.0080 jlongo@equicomgroup.com	The Investor Relations Group Gino De Jesus or Dian Griesel, Ph.D. 11 Stone St. 3rd Floor New York, NY 10004 T: 212.825.3210 F: 212.825.3229 theproteam@aol.com

ONCOLYTICS BIOTECH INC.
BALANCE SHEETS


		Unaudited			Audited
		March 31,			December 31,
		2003			2002
		$			$

ASSETS
Current assets:
	Cash		6,887,378			8,319,244
	Accounts receivable		45,686			48,536
	Prepaid expenses		77,433			77,158

			7,010,497			8,444,938
Capital assets			4,684,648			4,516,813
Investments			5,006,503			5,006,503

			16,701,648			17,968,254

LIABILITIES
Accounts payable and accrued liabilities			863,305			1,260,239

Alberta Heritage Foundation loan			150,000			150,000

Shareholders’ equity:
	Share capital		30,550,029			30,305,858
	Contributed surplus		2,703,189			2,702,718
	Deficit		(17,564,875	)		(16,450,561	)

			15,688,343			16,558,015

			16,701,648			17,968,254

ONCOLYTICS BIOTECH INC.

Statements of Loss and Deficit
(Unaudited)


		For the three months ended					Cumulative from
		March 31					inception on
							April 2,
		2003		2002			1998
		$		$			$

Revenue
Rights revenue			—		—			310,000
Interest income			43,170		57,180			1,815,848

			43,170		57,180			2,125,848

Expenses
	Research and development		479,635		871,519			14,056,516
	Operating		522,025		489,478			5,329,098
	Amortization		155,224		131,612			1,401,790

			1,156,884		1,492,609			20,787,404

Loss before income taxes			1,113,714		1,435,429			18,661,556
	Capital tax		600		296			18,319
	Future income tax recovery		—		(161,905	)		(1,115,000	)

Net loss for the period			1,114,314		1,273,820			17,564,875
Deficit, beginning of the period			16,450,561		10,359,075			—

Deficit, end of the period			17,564,875		11,632,895			17,564,875

Basic and diluted loss per common share			0.05		0.07

Weighted average number of shares			22,221,506		19,191,395

ONCOLYTICS BIOTECH INC.

Statement of Cash Flows
(Unaudited)


		For the three months ended						Cumulative from
		March 31						inception on
								April 2,
		2003			2002			1998
		$			$			$

OPERATING ACTIVITIES
Net Loss for the period			(1,114,314	)		(1,273,820	)		(17,564,875	)
Deduct non-cash items
	Amortization		155,224			131,612			1,401,790
	Future income tax recovery		—			(161,905	)		(1,115,000	)
	Non-cash compensation expense		471			—			33,189
	Net change in non-cash working capital		(257,136	)		(1,341,393	)		808,234

			(1,215,755	)		(2,645,506	)		(16,436,662	)

INVESTING ACTIVITIES
Intellectual property expenditures			(459,660	)		(149,130	)		(2,078,617	)
Purchase of capital assets			(622	)		(158,325	)		(460,865	)
Investment in Transition Therapeutics Inc.			—			—			(20,352	)
Investment in BCY LifeSciences Inc.			—			—			(127,123	)

			(460,282	)		(307,455	)		(2,686,957	)

FINANCING ACTIVITIES
Alberta Heritage Loan			—			—			150,000
Proceeds from exercise of warrants and options			—			—			2,760,103
Proceeds from private placement			244,171			—			6,917,691
Proceeds from public offering			—			—			16,183,203

			244,171			—			26,010,997

Increase (decrease) in cash during period			(1,431,866	)		(2,952,961	)		6,887,378
Cash, beginning of the period			8,319,244			14,970,756			—

Cash, end of the period			6,887,378			12,017,795			6,887,378

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