Oncolytics Biotech, Inc. (USA) (NASDAQ:ONCY)

CAPS Rating: 1 out of 5

A development stage company focuses on the discovery and development of oncolytic viruses for the treatment of cancers.

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Player Avatar jennings2 (< 20) Submitted: 12/2/2010 3:37:20 PM : Outperform Start Price: $4.96 ONCY Score: -149.12

Oncolytics is a speculative play, no doubt. No completed Ph3 yet. It has one drug. A small cap with little cash. So why buy. Simple. Risk reward.

ONCY is trying to cure cancer, as are many. What differentiates it, is it's one drug's mechanism of action, if proven successful, will work against many common cancer indications. That gives it a big revenue potential relative to current market cap. The side effect profile is minimal and generally well understood. The virus itself is well known scientifically and generally benign in humans. The drug (a virus) has proven in early trials to be capable of dramatic outcomes. Since it works synergistically with chemotherapy, trials are easy to design and set up. Give standard of care and standard of care plus Reosylin. If it is proven to work in one indication, stock price will appreciate significantly from current levels. Given that there are many indications entering trials recently, with gov't and health institute support, those in the research community must see some possibility of success. So if you are willing to invest in what are very risky biotech companies, this company is not a bad choice, as they are focussed on one thing, Reosylin, that if successful, could used in conjunction with standard of care across many different cancers.

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