Canaccord Genuity Maintains a 'Buy' Rating on Oncolytics Biotech (ONCY); Intriguing Overall Survival Data at ASCO

Canaccord Genuity maintains a 'Buy' rating on Oncolytics Biotech (Nasdaq: ONCY), raises target price to C$5.25 from C$4.50.

Canaccord analyst says, "Oncolytics has reported important Phase II overall survival (OS) data at the American Society of Clinical Oncology (ASCO) meeting in Chicago. (Impact Positive). The Phase I/II study of Reolysin treatment in patients with squamous cell carcinoma of the head and neck (SCCHN) showed that overall survival for these patients was greater than eight months. This is almost double the overall survival seen in small studies of this patient population. We note that four of the 24 SCCHN patients treated with Reolysin remain alive, and therefore the data for Reolysin continues to improve. Importantly, OS is also the primary endpoint of the recently initiated Phase III study for Reolysin in the same indication."

"The next major catalysts for Oncolytics include the announcement of Phase II lung cancer data, likely in Q3 of this year, and interim Phase III data, which is expected in H1 2011. Despite the strong data at ASCO, the stock traded lower likely related to a financing overhang, the timing and likelihood of which is uncertain. Oncolytics remains one of our top picks in the biotech space and we continue to recommend investors buy the stock in anticipation of these key upcoming milestones."

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Source: StreetInsider.com