In a May 29 research report, analyst Neil Maruoka indicated Canaccord Genuity raised its target price on Oncolytics Biotech Inc. (ONCY:NASDAQ; ONC:TSX) to CA$23 per share (previously CA$2.50), which "represents a 132.6% annualized return and continues to support our Buy recommendation." Canaccord's revised price target follows the completion of Oncolytics' 9.5:1 share consolidation. The biotechnology firm is now trading at around CA$9.30 per share.
Canaccord noted that, "the company has previously announced its intention to list its common shares on the Nasdaq, which we believe will provide better exposure to US investors and a larger pool of sophisticated healthcare-focused capital."
In other news, the FDA outlined the regulatory path forward for Oncolytics' Reolysin, "significantly derisking the stock," Maruoka purported. Reolysin is an immuno-oncolytic virus that targets cancer.
Also, the company recently announced it intends to conduct a pivotal study of Reolysin in metastatic breast cancer, with overall survival as the endpoint.
Further, it plans a second combination study of Reolysin with Merck & Co. Inc.'s (MRK:NYSE) anti-PD1 checkpoint inhibitor Keytruda in collaboration with the University of Southern California. "If successful, we believe that the Reolysin-Keytruda combination studies could lead to a possible expanded partnership with Merck," Maruoka wrote.
Looking forward, the analyst also pointed out that Oncolytics likely will need additional funding to develop and commercialize Reolysin. To this end, it will "re-list its common shares on the NASDAQ, which we believe will provide better exposure to U.S. investors and a larger pool of sophisticated, healthcare-focused capital," added Maruoka.
Another possible funding source, Maruoka noted, is additional partnerships, "including additional regional deals and/or global transactions with big pharma or big biotech." These are expected due to Reolysin's potential to "fit well with other immunotherapies for cancer," and are more likely to happen now that the biotech has received FDA input.
"We would remain buyers of [Oncolytic] stock with potential regulatory and clinical catalysts lined up over the next several months as well as the possibility of additional partnerships," Maruoka concluded.
Want to read more Life Sciences Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article
Disclosures from Canaccord Genuity, Oncolytics Biotech Inc., Company Update, May 29, 2018
Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.
Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Required Company-Specific Disclosures (as of date of this publication):
Oncolytics Biotech Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Oncolytics Biotech Inc..
In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Oncolytics Biotech Inc.
In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or co-manager of a public offering of securities of Oncolytics Biotech Inc. or any publicly disclosed offer of securities of Oncolytics Biotech Inc. or in any related derivatives.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Oncolytics Biotech Inc. in the next three months.
Disclosures are available here.
