WONDER AUTO TECH INC Message Board

will you wake up one morning, open your acct to a zero balance, and have your online broker advise you that you must not have taken proper care of your password, and they are sorry, but they are not liable?

How would you like to be short on that one. LOL

TLSR: Would tell me some of the names that you like?

GW: I'll start with Oncolytics Biotech Inc. (ONCY:NASDAQ; ONC:TSX). Some interesting data were reported on Dec. 13, and the year finished with the company deciding that its phase 3 head-and-neck cancer trial, REO 018 (Reolysin [reovirus serotype 3—Dearing strain] in combination with carboplatin and paclitaxel in second-line patients with platinum-refractory, taxane-naïve head-and-neck cancers), has been effectively split into two different studies. One side focuses on patients with distal metastatic disease, and the other on those with locoregional recurrence, with or without distant metastatic disease. Data for progression-free survival and overall survival is expected in Q2/13.

"Money is being put to work in healthcare stocks, and we are optimistic that will continue."
Subsequently, some initial analysis was completed that suggested a positive differential effect on tumor size, and on the percentage of patients with a positive result, at an early point in the experimental arm of the study. It is a somewhat novel analysis, and because it was double-blinded, randomized data, I think it caused investors to be enthusiastic about the potential that this was an early indication of the drug working. This was actually the first endpoint to be un-blinded in REO 018.

Now we are a quarter or so away from release of important information from the phase 3 trial, which we are expecting in Q2/13. We continue to be encouraged by the potential for the drug and are very eager to see how this phase 3 study turns out.

TLSR: It's an interesting idea to look at the effect of Reolysin on distal metastatic lesions versus those that may not have metastasized as yet. These tumor colonies have different phenotypes. Do you think that's a good design?

GW: Anything that can be done to make a more homogeneous study population is likely to assist in discerning a difference. If you have an inhomogeneous group of folks, there may be important differences that aren't notable across the breadth of that group. I think this is an appropriate way to improve the chance of success for the study.

TLSR: When we spoke last, in August, we talked briefly about the difficulty of this squamous cell carcinoma of the head-and-neck indication. It is so aggressive and generally difficult to deal with, both medically and surgically. It is disfiguring, and patients lose their ability to eat. I say any progress or improvement in efficacy is good. But these recent data, while statistically significant, aren't dramatic. How will Reolysin stack up against cetuximab (Erbitux)? Does it have to show superiority or just noninferiority?

GW: We won't be able to do a direct comparison because they are different studies. There is no reason to believe that Oncolytics' approach would be exclusive of cetuximab. For investors, it is about getting that first randomized data showing that there is a treatment effect, because we believe that the disease indication and market opportunity are very broad for Reolysin. We are not going to hold up a glass right now to see whether it's better or worse than cetuximab, although some investors might look at that as being important relative to the opportunity in head-and-neck cancer treatments.

TLSR: These clinical trials with Reolysin are so numerous. It looks like maybe 30 trials are going on in the U.S., in Canada and in the U.K. How is the company funding all of these?

GW: A number of the ongoing studies for Reolysin are being sponsored by the National Cancer Institute. That is offsetting a tremendous amount of the cost. I believe about 10 studies are sponsored.

TLSR: Is the phase 3 data on Reolysin the next catalyst for Oncolytics? And what is your target price?

GW: Yes, that is the next catalyst. We expect data in Q2/13: It might slip into Q3. My target price is $11.