Feb. 8 (Bloomberg) -- Oncolytics Biotech Inc., a company using viruses to develop cancer drugs, climbed to its highest value in 11 months after results of a study showed that its Reolysin treatment shrunk lung tumors.
Oncolytics rose 23 percent to C$4.39 in Toronto, its highest price since March 8. The stock has risen 10 percent this year.
Data from the Phase 2 trial using Reolysin in combination with carboplatin and paclitaxel, a chemotherapy, found 95 percent of users studied showed overall tumor shrinkage, with the average tumor shrinking 34 percent, Oncolytics said in a statement today. The trial involved patients with squamous cell carcinoma lung cancer.
“It’s exciting to have 95 percent of patients in this study exhibit tumor shrinkage and these results further suggest that Reolysin may have potential use in pre-surgical settings,” said Brad Thompson, chief executive officer of Oncolytics, in the statement.
To date, Oncolytics has observed nine partial and stable responses and three progressions for a disease control rate of 86 percent.
“Tumor response data shared on Friday are quite encouraging,” said Douglas Loe, a health-care analyst with Byron Capital Markets, in a note to clients. Loe maintained a speculative buy rating and C$8 target price for Oncolytics.
The company jumped 28 percent on Dec. 13 after announcing positive initial results for a Phase 3 Reolysin trial in head and neck cancers. In that trial 86 percent of patients exhibited either tumor stabilization or shrinkage.
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