Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cancer therapy specialist Oncolytics Biotech (Nasdaq: ONCY ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Oncolytics and see what CAPS investors are saying about the stock right now.
Oncolytics facts
| Headquarters (founded) | Calgary, Canada (1998) |
| Market Cap | $247.4 million |
| Industry | Biotechnology |
| Trailing-12-Month Operating Income | ($35.8 million) |
| Management | Chairman/CEO Bradley Thompson CFO Douglass Ball |
| Return on Capital (average, past 3 years) | (54%) |
| Cash/Debt | $36.2 million / $0 |
| Competitors | GlaxoSmithKline Infinity Pharmaceuticals Medivation |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 53% of the 19 All-Star members who have rated Oncolytics believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, zzlangerhans, tapped Oncolytics as a rather unfavorable risk/reward proposition:
The central story for Reolysin now is the REO 018 phase III trial of Reolysin with paclitaxel and carboplatin in platinum-refractory head and neck cancer. This trial completed enrollment in the 80 patient initial stage of the trial in April and the company is awaiting the results of an ongoing data review to determine if they will continue the trial and enroll another 200 patients. ...
As of today, Oncolytics' market cap was about [$250M]. Speaking of market cap, failure of Reolysin in this phase III trial will raise the spectre of total platform destruction, which would raze the market cap close to the cash position of [$36M]. That corresponds to a share price around 45 cents. Unfortunately, only management knows when they will release the results of the interim efficacy analysis of REO 018, although it seems certain that it will be before the end of 2012.
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Report this Comment On August 21, 2012, at 9:47 PM, fresnarus wrote:
The phase III trial in head an neck cancer is being conducted according to a Special Protocol Assessment with the FDA by a designated third party at arms length from the company. The company has no control or information over when the interim phase III data will come out, which is the way it should be: Indeed, when the FDA goes to decide on whether Reolysin is approved they will want to see that an unbiased party has conducted and managed the trials. This was discussed at length in the Shareholder Meeting in late June of 2012, and the audio is available on the company website.
It is worth pointing out that the National Cancer Institute and the National Cancer Institute of Canada are sufficiently impressed by Reolysin that they are funding and conducting phase two trials of Reolysin in a number of different cancer types. These outside agencies are investing around $45M in these trials, so at least some experts are impressed with the company.
Report this Comment On August 22, 2012, at 9:31 PM, rbemr wrote:
I just read the Yahoo Finance article "Another Opportunity To Benefit From The Games Naked Short Traders Play?" that cites Brian D. Pacampara's blog. I've seen repeated hit pieces like this by the Fool now, particularly ARNA. This process is raping the average investor, who you are supposed to be serving. I am dropping my subscription. The Gardners try to portray themselves as average Joes. What a joke. They are deep in the sheets with big money Wall Street. If there's any integrity in the organization, these authors/bloggers should be rooted out and exposed. Motley Fool owes a public apology to your retail subscribers who have lost money because of your deceitful blogs.
Report this Comment On September 12, 2012, at 11:12 AM, zzlangerhans wrote:
Regarding the second comment "This process is raping the average investor, who you are supposed to be serving.": I would say this is not a legitimate rape. Seems like you're the one walking into the biker bar in a miniskirt. Do you still think Motley Fool owes a public apology to anyone who sold Oncolytics after this article was published?
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