Form 6-K
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Washington, D.C. 20549


Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of March 14, 2003

Commission File Number 000-31062

Oncolytics Biotech Inc.

(Translation of registrant’s name into English)

Suite 210, 1167 Kensington Crescent NW
Calgary, Alberta, Canada T2N 1X7

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   x   Form 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   o

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   o   No   x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   82 -             



Press Release
Financial Statements

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    Oncolytics Biotech Inc.
Date March 14, 2003   By:   /s/ Douglas A. Ball
Douglas A. Ball
Chief Financial Officer


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[Oncolytics Biotech Logo] 210, 1167 Kensington Crescent NW
Calgary, Alberta
Canada T2N 1X7

For Immediate Release

Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2002

CALGARY, Alberta, March 14, 2003 — Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (“Oncolytics”) today reported its financial results for the year ended December 31, 2002.

Highlights of 2002:

    Positive final results from a Phase I human clinical trial for REOLYSIN®
    Commencement of human clinical trials for T2 prostate cancer and brain cancer (malignant gliomas) for REOLYSIN®
    Development of a commercial manufacturing process for REOLYSIN®
    Two additional U.S. patents and the first European patent covering the reovirus technology were issued
    Strengthening of management and the board with the addition of George Gill, M.D., George Masters and William Cochrane, O.C., M.D.

“During 2002, we made significant progress in advancing the development of REOLYSIN®,” said Dr. Brad Thompson, President and CEO of Oncolytics Biotech Inc. “We are steadily assembling and strengthening the building blocks necessary to develop a novel and commercially successful cancer therapeutic.”

Total loss for the year ended December 31, 2002 was $6,091,486 or $0.30 per share, compared to a loss of $6,171,461 or $0.34 per share for the previous year, with a loss of $1,542,184 or $0.07 per share for the three months ended December 31, 2002 as compared to a loss of $1,355,736 or $0.08 per share for the three months ended December 31, 2001.

Total expenses for the year ended December 31, 2002 were $6,960,252 as compared to $7,137,243 for 2001. The decrease is primarily attributable to the absence of a $1.0 million milestone payment to founding shareholders in 2002 (a $1.0 million milestone payment was paid to founding shareholders in 2001) offset by increased product development and clinical trial activities in 2002, and increased operating activities supporting corporate activities. In addition, increased recovery of future income taxes, further reduced the total loss for 2002 relative to 2001.

The Company recorded reduced interest income of $208,867 in 2002 ($655,212 in 2001) resulting from lower average cash and investment balances during the year and lower interest rates.


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The Company follows the liability method of accounting for income taxes, which resulted in a future income tax recovery of $647,618 in 2002, increased from a recovery of $340,570 recorded in 2001. The increased recovery in 2002 reflects the effect of changes in tax rates in 2002 and recognition of loss carry forwards.

The Company had cash and cash equivalents of $8,319,244 at December 31, 2002, which compares to cash and cash equivalents of $14,970,756 at December 31, 2001. During the year the Company raised net proceeds of $1,769,877 from a private placement and $34,000 from the exercise of stock options. These proceeds will be used to further the development and testing of the Company’s products as well as for general corporate purposes.

About Oncolytics Biotech Inc.

Oncolytics is a biotechnology company focused on the development of REOLYSIN®, its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics’ researchers have demonstrated that the reovirus is able to selectively kill cancer cells and, in vitro, kill human cancer cells derived from many types of cancer including breast, prostate, pancreatic and brain tumours. Research has also yielded successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that there were no toxicology-related issues with the administration of the reovirus, and that the reovirus demonstrated activity in injected tumours.

This press release contains forward looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements, including the Company’s belief as to the potential of REOLYSIN® as a cancer therapeutic and the Company’s expectations as to the success of its research and development programs in 2003 and beyond, involve known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, among others, the availability of funds and resources to pursue research and development projects, the efficacy of REOLYSIN® as a cancer treatment, the success and timely completion of clinical studies and trials, the Company’s ability to successfully commercialize REOLYSIN®, uncertainties related to the research and development of pharmaceuticals, uncertainties related to the regulatory process and general changes to the economic environment. Investors should consult the Company’s quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to the forward looking statements. Investors are cautioned against placing undue reliance on forward looking statements. The Company does not undertake to update these forward looking statements.


For Canada:   For Canada:   For United States:
Oncolytics Biotech Inc.   The Equicom Group Inc.   The Investor Relations Group
Doug Ball, CFO   Joanna Longo   Gino De Jesus or Dian Griesel, Ph.D.
210, 1167 Kensington Cr NW   20 Toronto Street   50 Pine Street, 6th Floor
Calgary, Alberta T2N 1X7   Toronto, Ontario M5C 2B8   New York, NY 10005
Tel: 403.670.7377   Tel: 416.815.0700 ext. 233   Tel: 212.825.3210
Fax: 403.283.0858   Fax: 416.815.0080   Fax: 212.825.3229


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Oncolytics Biotech Inc.


As at December 31

      2002   2001
      $   $
Cash and cash equivalents
    8,319,244       14,970,756  
Accounts receivable
    48,536       95,321  
Prepaid expenses
    77,158       24,189  
    8,444,938       15,090,266  
Capital assets
    4,516,813       3,982,293  
    17,968,254       19,072,559  
Accounts payable and accrued liabilities
    1,260,239       2,321,063  
Alberta Heritage Foundation loan
    150,000       150,000  
Future income tax liability
Commitments and contingency
Shareholders’ equity
Share capital
Authorized: unlimited
Issued: 22,145,284 (2001 – 19,191,395)
    30,305,858       23,812,953  
Contributed surplus
    2,702,718       2,500,000  
    (16,450,561 )     (10,359,075 )
    16,558,015       15,953,878  
    17,968,254       19,072,559  


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Oncolytics Biotech Inc.


For the years ended December 31

                            inception on
                            April 2,
    2002   2001   2000   1998
    $   $   $   $
Rights revenue
                310,000       310,000  
Interest income
    208,867       655,212       905,690       1,772,678  
    208,867       655,212       1,215,690       2,082,678  
Research and development
    4,283,743       5,116,661       3,689,815       13,576,881  
    2,102,272       1,555,128       1,060,643       4,807,073  
    574,237       465,454       205,196       1,246,566  
    6,960,252       7,137,243       4,955,654       19,630,520  
Loss before income tax
    6,751,385       6,482,031       3,739,964       17,547,842  
Income tax recovery
    (659,899 )     (310,570 )     (126,812 )     (1,097,281 )
Net loss for the year
    6,091,486       6,171,461       3,613,152       16,450,561  
Deficit, beginning of year
    10,359,075       4,187,614       574,462        
Deficit, end of year
    16,450,561       10,359,075       4,187,614       16,450,561  
Basic and diluted loss per share
    (0.30 )     (0.34 )     (0.22 )        


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Oncolytics Biotech Inc.


For the years ended December 31

                              inception on
                              April 2,
      2002   2001   2000   1998
      $   $   $   $
Net loss for the year
    (6,091,486 )     (6,171,461 )     (3,613,152 )     (16,450,561 )
Deduct non-cash items
    574,237       465,454       205,196       1,246,566  
Income tax recovery
    (647,618 )     (340,570 )     (126,812 )     (1,115,000 )
Non-cash compensation
    32,718                   32,718  
Net changes in non-cash working capital
    (1,123,551 )     1,773,720       376,769       1,065,370  
    (7,255,700 )     (4,272,857 )     (3,157,999 )     (15,220,907 )
Capital asset expenditures
    (1,052,214 )     (585,513 )     (372,823 )     (2,079,200 )
Investment in Transition Therapeutics Inc.
    (20,352 )                 (20,352 )
Investment in BCY LifeSciences Inc.
    (127,123 )                 (127,123 )
    (1,199,689 )     (585,513 )     (372,823 )     (2,226,675 )
Alberta Heritage Foundation loan
Proceeds from exercise of stock options and warrants
    34,000       2,210,016       501,010       2,760,103  
Proceeds from private placement
    1,769,877             2,998,645       6,673,520  
Proceeds from issue of common shares
                13,101,100       16,183,203  
    1,803,877       2,210,016       16,600,755       25,766,826  
Increase (decrease) in cash and cash equivalents during the year
    (6,651,512 )     (2,648,354 )     13,069,933       8,319,244  
Cash and cash equivalents, beginning of the year
    14,970,756       17,619,110       4,549,177        
Cash and cash equivalents, end of the year
    8,319,244       14,970,756       17,619,110       8,319,244  
Cash interest received
    218,129       655,212       905,690          
Cash taxes paid
    18,114       39,870