RBC Capital Keeps Buy Rating on Oncolytics Biotech with $3.50 Price Target

RBC Capital analyst Douglas Miehm maintained a Buy rating on Oncolytics Biotech with a price target of C$3.50. The analyst has a 3-star rating and a 46.83% success rate. The company has a consensus analyst rating of Strong Buy and a price target consensus of $3.51, representing a 308.90% upside from current levels.

Title: Oncolytics Biotech Reports Strong Second Quarter, Prepares for Pivotal Study in Pancreatic Cancer

Oncolytics Biotech Inc. (NASDAQ: ONCY) reported its financial results for the second quarter of 2025, highlighting significant progress in its clinical programs and strategic decisions. The company presented strong translational data and outlined plans for a pivotal study in first-line metastatic pancreatic ductal adenocarcinoma (mPDAC).

Key Highlights:

1. Clinical Progress: The company presented translational data demonstrating pelareorep's mechanism of action, showing how it can prime the tumor microenvironment for treatment. Pelareorep expands reovirus-specific T cells, increases cytokines and chemokines, and increases tumor-infiltrating lymphocytes (TILs) in the blood.

2. Management Changes: Oncolytics appointed Jared Kelly as the new CEO and Andrew Aromando as the Chief Business Officer. Both executives bring extensive experience in advancing clinical programs and successful biotech transactions.

3. Strategic Decisions: The company is pursuing a registration-enabling pivotal study for pelareorep in first-line mPDAC. Discussions with regulators are underway to finalize the approval pathway, with the potential for start-up activities as early as Q4 2025.

4. Financial Performance: As of June 30, 2025, Oncolytics reported $14.6 million in cash and cash equivalents, with a net loss of $6.2 million for the second quarter. Research and development (R&D) expenses decreased to $2.8 million, primarily due to lower clinical trial expenses.

5. Analyst Ratings: RBC Capital analyst Douglas Miehm maintained a Buy rating on Oncolytics Biotech with a price target of C$3.50, reflecting a 308.90% upside from current levels. The consensus analyst rating is Strong Buy, with a price target consensus of C$3.51.

Future Milestones:

- Q3 2025: Provide an updated clinical timeline for the registration-enabling pivotal study for pelareorep in 1L mPDAC.
- Q4 2025: Initiate start-up activities for the registration-enabling study for pelareorep in 1L mPDAC.
- End of 2025: Updated clinical data regarding safety and efficacy in Cohort 4 of the GOBLET study investigating pelareorep combined with atezolizumab in anal carcinoma.

Reference List:

[1] https://www.biospace.com/press-releases/oncolytics-biotech-reports-second-quarter-financial-results-and-details-clinical-program-plans-for-pelareorep