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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