Washington, D.C. 20549
Form 6-K
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 2007
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 o
  Form 40-F þ
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 þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82 -



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 2, 2007  By:   /s/ Doug Ball    
    Doug Ball   
    Chief Financial Officer   



  210,1167 Kensington Cr. N.W.
Calgary, Alberta
Canada T2N 1X7

Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2006
CALGARY, AB, March 2, 2007 — Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) (“Oncolytics” or the “Company”) today reported its financial results for the year ended December 31, 2006.
“The past year has been an exciting and productive one for Oncolytics,” said Dr. Brad Thompson, President and CEO of Oncolytics Biotech Inc. “In 2006, we presented positive clinical results from local and systemic administrations trials using REOLYSIN®, commenced our Phase II combination REOLYSIN® and radiation clinical program and received approval to begin our combination REOLYSIN® program with approved chemotherapeutics.”
Selected Highlights:
    Expanded the clinical program with the approval and commencement of enrolment for a Phase II combination REOLYSIN®/radiation trial in the U.K., approval and commencement of a Phase Ib REOLYSIN®/radiation trial in the U.K., commencement of a Phase I/II recurrent malignant glioma trial in the U.S., and approval for three combination REOLYSIN® and chemotherapy trials in the U.K.;
    Completed enrolment of two Phase I systemic administration trials in the U.S. and the U.K.;
    Presented positive final results of a Canadian Phase I recurrent malignant glioma trial and positive interim results of a U.K. Phase I systemic administration trial at the American Society of Clinical Oncology (ASCO) annual meeting and positive interim results of a Phase Ia combination REOLYSIN® and radiation clinical trial at the American Association for Cancer Research (AACR) annual meeting;
    Presented promising preclinical research at the EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics in the area of co-therapy with chemotherapeutic agents and at the AACR Annual Meeting on the anti-tumour activity of reovirus in vitro and in vivo in childhood sarcoma cell lines;
    Presented additional preclinical research on the interaction of reovirus and the immune system in 2006 at the British Society of Gene Therapy in London, U.K. and the European National Societies of Immunology in Paris, France and in early 2007 at the Academic & Research Surgery Conference in Cambridge, U.K.;
    Strengthened the Board of Directors with the appointments of Dr. Ed Levy and Mr. Ger van Amersfoort;
    Expanded the Company’s intellectual property portfolio with the issue of four additional U.S. patents and one more Canadian patent in 2006, and an 18th U.S. patent in early 2007;
    Announced in January 2007 that Ms. Mary Ann Dillahunty had been appointed to the Company’s management team as Vice President, Intellectual Property; and,
    Announced in February 2007 the closing of a public offering that provided gross proceeds of $12 million to the Company.


Oncolytics Biotech Inc.
As at December 31
    2006     2005  
    $     $  
Cash and cash equivalents
    3,491,511       3,511,357  
Short-term investments
    24,122,237       36,894,810  
Accounts receivable
    84,003       47,390  
Prepaid expenses
    638,540       540,368  
    28,336,291       40,993,925  
Property and equipment
    149,596       189,863  
Intellectual property
    5,079,805       5,110,538  
    33,565,692       46,294,326  
Accounts payable and accrued liabilities
    2,616,421       1,692,481  
Alberta Heritage Foundation loan
    150,000       150,000  
Commitments and contingency
Shareholders’ equity
Share capital
Authorized: unlimited
Issued: 36,520,748 (2005 — 36,236,748)
    83,083,271       82,841,871  
    4,216,740       4,429,932  
Contributed surplus
    8,529,326       7,912,584  
    (65,030,066 )     (50,732,542 )
    30,799,271       44,451,845  
    33,565,692       46,294,326  



Oncolytics Biotech Inc.
For the periods ended December 31
                            from inception  
                            on April 2,  
                            1998 to  
                            December 31,  
    2006     2005     2004     2006  
    $     $     $     $  
Rights revenue
    ¾       ¾       ¾       310,000  
    ¾       ¾       ¾       310,000  
Research and development
    10,535,689       9,308,977       7,107,998       43,371,194  
    3,630,144       3,083,372       2,803,669       16,770,581  
Stock based compensation
    403,550       64,104       2,668,570       4,165,649  
Foreign exchange loss
    35,270       253,608       358,068       648,848  
Amortization — intellectual property
    874,043       786,459       686,717       4,036,834  
Amortization — capital assets
    52,637       69,532       65,039       407,683  
    15,531,333       13,566,052       13,690,061       69,400,789  
    15,531,333       13,566,052       13,690,061       69,090,789  
Interest income
    (1,233,809 )     (783,456 )     (699,757 )     (4,803,005 )
Gain on sale of BCY LifeSciences Inc.
    ¾       (765 )     (34,185 )     (299,403 )
Loss on sale of Transition Therapeutics Inc.
    ¾       ¾       ¾       2,156,685  
Loss before taxes
    14,297,524       12,781,831       12,956,119       66,145,066  
Future income tax recovery
    ¾       ¾       ¾       (1,115,000 )
Net loss for the year
    14,297,524       12,781,831       12,956,119       65,030,066  
Deficit, beginning of year
    50,732,542       37,950,711       24,994,592       ¾  
Deficit, end of year
    65,030,066       50,732,542       37,950,711       65,030,066  
Basic and diluted loss per share
    (0.39 )     (0.39 )     (0.45 )        



Oncolytics Biotech Inc.
For the periods ended December 31
                            Cumulative from  
                            inception on  
                            April 2,  
                            1998 to  
                            December 31,  
    2006     2005     2004     2006  
    $     $     $     $  
Net loss for the year
    (14,297,524 )     (12,781,831 )     (12,956,119 )     (65,030,066 )
Deduct non-cash items
Amortization — intellectual property
    874,043       786,459       686,717       4,036,834  
Amortization — capital assets
    52,637       69,532       65,039       407,683  
Stock based compensation
    403,550       64,104       2,668,570       4,165,649  
Other non-cash items
          224,508       379,895       1,383,537  
Net changes in non-cash working capital
    811,922       584,766       (69,065 )     1,904,921  
Cash used in operating activities
    (12,155,372 )     (11,052,462 )     (9,224,963 )     (53,131,442 )
Intellectual property
    (842,610 )     (1,033,035 )     (958,809 )     (5,499,280 )
Capital assets
    (35,837 )     (61,309 )     (15,230 )     (623,348 )
Purchase of short-term investments
    (1,035,427 )     (22,195,253 )     (6,777,179 )     (48,119,467 )
Redemption of short-term investments
    13,808,000       6,656,746       3,114,000       23,578,746  
Investment in BCY LifeSciences Inc.
          7,965       133,609       464,602  
Investment in Transition Therapeutics Inc.
Cash used in investing activities
    11,894,126       (16,624,886 )     (4,503,609 )     (27,666,404 )
Alberta Heritage Foundation loan
                ¾       150,000  
Proceeds from exercise of stock options and warrants
    241,400       3,384,787       8,121,296       15,208,468  
Proceeds from private placements
          15,395,402       6,223,763       38,137,385  
Proceeds from public offerings
                9,150,902       30,793,504  
Cash provided by financing activities
    241,400       18,780,189       23,495,961       84,289,357  
Increase (decrease) in cash and cash equivalents during the period
    (19,846 )     (8,897,159 )     9,767,389       3,491,511  
Cash and cash equivalents, beginning of the period
    3,511,357       12,408,516       2,641,127        
Cash and cash equivalents, end of the period
    3,491,511       3,511,357       12,408,516       3,491,511  
Cash interest received
    940,100       993,097       459,757          



To view the Notes to the Company’s Financial Statements and Management’s Discussion and Analysis, please see the Company’s 2006 Annual Filings which will be available on
About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the development of oncolytic viruses as potential cancer therapeutics. Oncolytics’ clinical program includes a variety of Phase I and Phase II human trials using REOLYSIN®, its proprietary formulation of the human reovirus, alone and in combination with radiation or chemotherapy. For further information about Oncolytics please visit
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; the Company’s expectations as to the success of its research and development programs in 2007 and beyond, the Company’s planned expansion, the value of the additional patents and intellectual property; the Company’s expectations related to the applications of the patented technology; the ability of the technology to strengthen the core technology; the Company’s expectations as to adequacy of its existing capital resources; the design, timing, success of planned clinical trial programs and the Company’s planned expansion of such programs; and other statements related to anticipated developments in the Company’s business and technologies 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.
Oncolytics Biotech Inc.
  The Equicom Group   The Investor Relations Group
Cathy Ward
  Nick Hurst   Erika Moran
210, 1167 Kensington Cr NW
  600, 205 5th Ave. SW   11 Stone St, 3rd Floor
Calgary, Alberta T2N 1X7
  Calgary, Alberta T2P 2V7   New York, NY 10004
Tel: 403.670.7377
  Tel: 403.538.4845   Tel: 212.825.3210
Fax: 403.283.0858
  Fax: 403.266.2453   Fax: 212.825.3229