Oncolytics Biotech Inc. Completes Patient Enrolment in U.K. Phase Ia/Ib Combination REOLYSIN®/Radiation Clinical Trial

CALGARY, AB, --- December 21, 2007

Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) has completed patient enrolment in its Phase Ia/Ib U.K. clinical trial investigating the intratumoural delivery of REOLYSIN® in combination with radiation to treat patients with advanced cancers. A total of 23 patients received a range of two to six intratumoural doses of REOLYSIN® at escalating dosages up to a maximum of 1x10(10) TCID(50) with a constant localized radiation dose of either 20 Gy or 36 Gy. The treatment appears to have been well tolerated by the patients and results in both local and remote anti-tumour activity in patients with a variety of advanced cancers.

Interim results were presented at the National Cancer Research Institute conference on October 2, 2007 in Birmingham, U.K. and at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics in San Francisco on October 24, 2007.

The primary objective of the trial is to determine the maximum tolerated dose (MTD), dose limiting toxicity (DLT), and safety profile of REOLYSIN® when administered intratumourally to patients receiving radiation treatment. A secondary objective is to examine any evidence of anti-tumour activity. Eligible patients include those who have been diagnosed with advanced or metastatic solid tumours that are refractory (have not responded) to standard therapy or for which no curative standard therapy exists.

The principal investigators for the trial are Dr. Kevin Harrington of the Targeted Therapy Laboratory, Cancer Research UK Centre for Cell and Molecular Biology, The Institute of Cancer Research and Honorary Consultant in Clinical Oncology at The Royal Marsden NHS Foundation Trust, London, UK, and Dr. Alan Melcher of the Cancer Research U.K. Clinical Centre at St. James’s University Hospital in Leeds. The trial enrolled patients at the Royal Marsden and St. James’s Hospitals in the U.K.

Oncolytics Biotech Inc. to Present at Annual Vaccine Production Conference

CALGARY, AB, --- November 29, 2007 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced that Dr. Matt Coffey, Chief Scientific Officer of Oncolytics, is scheduled to deliver a presentation on Wednesday, December 5, 2007 entitled “Large Scale Production Process for the Oncolytic Agent REOLYSIN® (Human Reovirus)” at the Informa Life Sciences’ 3rd Annual Vaccine Production Conference in Cologne, Germany. The conference runs from December 4-5, 2007.

For more information about the conference, please visit www.informa-ls.com/vaccines.

Oncolytics Biotech Inc. Announces Issuance of 24th U.S. Patent

11/27/2007 7:08:59 AM ET

CALGARY, AB --- November 27, 2007 - Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (“Oncolytics”) today announced that it has been granted U.S. Patent 7,300,650 entitled “Reovirus for the Treatment of Neoplasia.” The claims describe methods of using the reovirus to treat cancers that have inactivated PKR, whether the PKR is inactivated by mutation of Ras or by other factors. PKR is a host cellular protein responsible for preventing virus replication within a cell. Tumour cells lacking the activity of PKR are susceptible to reovirus replication and subsequently, cancer cell killing.

“This patent represents a significant expansion of our intellectual property portfolio,” said Dr. Matt Coffey, Chief Scientific Officer of Oncolytics. “The claims cover additional pathways whereby tumours can become susceptible to reovirus infection and cell death.”

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 http://www.oncolyticsbiotech.com/

This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including among others, the Company’s belief as to the importance of the issuance of this patent, the safety and efficacy of the reovirus, the Company’s expectations as to the potential applications of the patented technology and other statements relating to anticipated developments in the Company’s business and technologies, involve known and unknown risks and uncertainties that 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 efficacy of REOLYSIN® as a cancer treatment, the success and timely completion of clinical studies and trials, uncertainties related to the research and development of pharmaceuticals and uncertainties related to the regulatory process. 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.

Article: Oncolytics Biotech working to uncover a Cancer Killer

From Biotechnology Focus

By Shawn Lawrence

For decades scientists, researchers and even big pharma companies have all tried in vain to find the cure for cancer. While the concept of a magic bullet to beat the disease has long been abandoned, one company may have in fact uncovered a promising new treatment through the use of something that most people actually go out of their way to avoid: a virus.

Read the full article here.

Transcript: Acumen BioFin Rodman & Renshaw 9th Annual Healthcare Conference, November 6, 2007

The following is posted for informational purposes only and so that the text can be searched and referenced. Although I have made every effort to ensure accuracy, no warranties are made or implied. I encourage everyone to listen to the original source.










0:00
Speaking on behalf of Oncolytics, Brad Thompson, CEO and President.

Thanks very much.

We trade both on NASDAQ and on Toronto, so if I can draw your attention to the recent filings with the securities and exchange commission and all thirteen security commissions in Canada and recent statements that we've made.

Oncolytics biotech is a relatively early-stage cancer company looking at using viruses for the treatment of cancers, and we're amongst a group of probably nine or ten biotech companies (half are public, half are not) that are looking at a variety of different viruses either engineered or not. For treating a variety of different cancers and I think that one of the interesting features of this entire group, that as a group, we've probably treated somewhere between four and five-thousand patients, if you include some of the gene therapy studies.

And it's probably the safest, honestly, new biologic group that’s come through regardless of which ever virus there is.

I’ll talk about our clinical program today. Just reassure everybody, everything that I'm talking about today we already have funding for.

And I’ll be just talking about our product that’s actually in the clinic which is called Reolysin.

Reolysin is a kind of interesting product it contains an unmodified virus. Sort of a subset in the viral area. Looking at the viruses that haven't actually been genetically engineered or changed.

And it's a fully replication competent virus, so for when it infects a cell it actually produces anywhere between two and twenty or twenty-five thousand progeny virus. So it's a self magnifying, self amplifying drug, which makes toxicology studies somewhat interesting.

In the native form it’s asymptomatic. If you're walking through Central Park today and splash through a puddle today you would be breathing in reovirus, anywhere between ten and a hundred virion particles.

And of course you're doing it little differently, our IV doses are 30 billion active particles per day for five days. And it’s interesting that it doesn't actually cause any disease, it's completely asymptomatic in its natural form. Why it's interesting to us as a potential therapeutic is that it has an absolute selectivity for growing in ras activated cells of all kinds.

Of course ras activation is particular interesting. In oncology anywhere between seventy-five and a hundred percent of the more aggressive cancers are ras activated. And between 65% and 75% of all the mainstream carcinomas are ras activated. So it's a good target.

And what that translates into if you look at people around the world that can actually afford health care there is about 5 million new patients a year that have a ras active tumor or condition evolve.

02:53

This virus is fairly promiscuous. It actually goes into every cell in your body. And if the cell is not ras activated, so your normal cells and say a third or so or little less than a third of cancer cell that don’t have ras, a compound called PKR is active and it blocks translation, so there's no viral protein made and replication is actually halted.

03:17

It’s a little more complicated than that of course. For those of you that know about ras, I apologize for condensing a very complicated pathway into one angry red dot. But in a ras activated cell, the thing that’s important to Reolysin is that it actually deactivates PKR, which is permissive to translation and allows the virus that last step into replication.

Once a virus comes into contact with a cell like this it kills it usually in about three days. And like I said you get a very large number of viral progeny.

It's never that simple, in humans we’ve found that it's actually two modes of action, in humans there's two types of tumor responses. Sometimes they're mixed which also complicates things.

The first is what I just described. The virus infects cells, kill cells, spreads around the tumor till it can't find a more cells and you get a very very rapid and robust tumor response.

What we found is that in the act of killing the cells, and the virus has actually kill the cells for this to happen, you revisualize the tumor to the immune system and you get a very robust and long-duration secondary immune response, which results in a slow but very long-duration tumors shrinkage over time, and sometimes we see tumor shrinking six, nine, twelve months…long, long beyond the time period we've actually ceased treatment.

04:39

This came out of my virology lab, not a cancer lab, and we were first to file in the area and our patent portfolio is developing rather robustly now. We only report on US and our home jurisdiction, which is Canada. But we have over 150 patents issued worldwide now and over 180 pending applications. And they cover pretty much everything all the way through manufacturing through composition of matter, through pharmaceutical use, and combination therapy which is very important for us as a commercial target.

You will very rarely hear somebody talk about manufacturing and biologics and that's for two reasons. One it’s not a problem, which is rare, or it’s a very large problem, which is unfortunately much more common. We spend a lot of time and energy working towards commercial scale and commercial cost effective process for this particular product. It is not easy, growing virus at scale and purifying them and making them stable as many people in the field have found out to their problems.

But currently we're just finishing off our low-end commercial scale development, which is 100 L, which produces between 40 and 50,000 dosages per batch, which gives you a million-ish dosages a year out of a small 100 L facility which is certainly enough for commercial introduction.

And we will be doing most multiple replication runs next year to support our regulatory filing.

06:04
With respect safety, I mean, this is a live active agent and we’re giving tons of it to you for many days in a row, not inhaling ten particles of it in Central Park,

We've treated just under150 patients now, most of which are intravenous, up to 30 billion active particles a day. There is actually twenty times that many total particles, so this is a very large protein load and it also got an infectious agent in it. And we have yet to reach maximum tolerated dose and the toxicities has been between, what I consider, a mild protein tox and a very mild viral tox. Generally very mild. The most common side effect are a degree, degree and a half fever, mild myalgia, arthralgia, and sort of pre-flu like symptoms that last usually for a day or so.

06:53
On the blood chemistry you're looking at low-grade lymphopenia/neutropenia which wouldn't be surprised to anybody who's ever worked in virology. And we've had a very small number of patients transiently go into grade three lymphopenia/neutropenia, and that disappears usually in a few hours which I have absolutely no explanation for. I've never seen lymphopenia/neutropenia last that short of a period of time, honestly. So we don't have an explanation for that. Interestingly enough, they’re usually day two, and they usually starts in the morning, day two, and they’re usually done by lunch. So it's a very predictable, which is what you like to have

07:23

This is our clinical program for REOLYSIN. It's a very broad program for a single agent I have to say, and there's a reason for that. We’re looking at both intratumoural administration versus systemic, and co-therapy versus monotherapy. And recently we've announced an interesting immunomodulation study we’re actually immunomodulating a patient’s immune system and then infecting them with the virus, which is kind of a little edgy. I think the reason for this is that the product seems, at least in the lab, to be extremely active and what we wanted to do is coincide our phase II data all coming available for his programs next year in order to have us take the II studies with the highest degree of signal into pivotal studies starting next year. This really gives us an opportunity to make sure that we understand the product in early-stage clinical development.

This briefly, we’re doing a monotherapy glio program in the states. Honestly most other big pharma colleagues don't care about glioma, it’s to small an indication. It's also very intransigent to therapy. But it’s certainly a very good target for, not just this virus, but a number of the viral agents. They all seem to have activity in glio.

We are just finishing off a phase I study here in the US, a previous phase I study we did in Canada had some interesting results with respect to lifespan. Multiple recurrent gliomas were enrolled with sort of three to six-month life expectancies, so one would expect that if the patients lived year or longer it would be of interest, and a quarter of the patients did that. We have one patient right now that's quote cured, I mean he’s fine.

09:00
Small data set, but certainly was encourage enough for us to repeat it, in essence, in the United States, and we will be in phase II study Q1 next year.

We are combining REOLYSIN with radiotherapy. This agent is probably more synergistic with radiation than any other agent that I’ve seen before, but it's on a selective basis. Normally, radiation sensitizers sensitize the entire body. It's a very known common phenomenon in radiation therapy, REOLYSIN does not. What we found in our phase Ia/Ib program is that you get the viral side effects, you get the radiation side effects, but you don't get both or any additive between the two, which is good. We’re one patient away from finishing the Ib and have been for a while. It's a very awkward protocol.

But we've brought in a phase II at the low dose, which is 20Gy (European measurement), in the UK, and we should be finishing enrollment in this study Q2 next year. It's primarily head, neck and esophageal cancers with a subset of melanomas. We’re starting to see some interesting things in that area and were measuring both local and remote responses, which is interesting for a local therapy.

10:08

The reason for that is the following: and we’ve kindly highlighted the tumors in this scan green… this is a patient who had failed multiple chemo and radiation cycles with head/neck tumors and subclavical lymph nodes…Monday through Friday radiation, Tuesday to Thursday reovirus. And two months out we had a strong partial response, at six months, the tumors still shrinking which is kind of interesting since the virus's been gone for 5 1/2 months by that point in time.

The really interesting thing with this patient is the remote response. A medial spinal tumor is sitting on top of the heart complex between two lung cavities there. And so you're treating in the throat and you’re getting response around the heart. So it's a strong partial response outside the radiation field. And that was the durable response. Both of these were partial responses by resist criteria. So we were really quite pleased with that. So we're looking at local and remote responses in our UK phase II.

Obviously, treating people systemically is the way to go in oncology. This virus does not go across the gut barrier, so we treat intravenously, which fortunately in oncology is perfectly acceptable, it gives you the largest patient population.

In two phase I studies we've completed its very well tolerated at very high dosages. In both studies, and these were end stage patients that have failed all other therapy, we had a variety of tumor regression, but posts interestingly in a very large variety of different indications.

11:44
The UK study was a larger study in little bit more complicated. It was a dose and frequent escalation and we ended up at five Monday through Friday dosing and went up to our highest IV dose (3x10¹⁰ TCID₅₀).

And it showed a very important technical features, this is a particle, and it was an open question whether that particle will make it into tumors. It does, and in a variety different places of the body. There were seven patients in the study that showed tumor responses in six different cancers in different places in different places in the body.

So that answered that question, and the holy grail in the viral area, which was actually isolating non-input virus out of tumors that had shrank, which we showed quite clearly.

The phase I in the US, was a single administration, we needed to make sure that five wasn't better than one, from a frequency perspective. And I was a little surprised to see that that actually doesn't matter whether one or five, and this is again in end-stage patients who had failed all their therapy…by resist criteria eighteen had stable disease and better including a partial response … again the toxicities were mild.

So this gives us some flexibility on dosing, we can do either one day or five day. And there are very good reason in combination studies to be looking at different dosing.

This is one of our patients from our UK study, metastatic prostate cancer. Actually this is a patient post-prostatectomy who had gone from a PSA of 20 to 100 in a couple months before coming into study so very active metastatic lesions in the lymph nodes and on the other side of the bladder.

13:31
This is actually two cycles into the treatment. The Patient was treated IV Monday, Friday, three weeks off, Monday thru Friday. And then the second scan you’ll see the large tumor on the left hand side of the bladder is actually getting dark, which is indication that the tumors is dying and the patient's PSA fell from 100 to 40 in those three weeks too. So we’re actually getting good tumor killing in this particular case.

Just for the techno-nerds amongst us, this is a micrograph of a biopsy of a tumor, which was completely dead on the inside by the way, it's completely scattered virus and we were actually able to isolate….the actually number is actually low, we’ve reconfirmed that. You're actually looking at between ten and a hundred million viral particles per gram of tissue, which is pretty remarkable, I mean the tumor is turning into a drug factory inside the human body.

From there we have moved in to, I think, a fairly broad phase two program, coincidently all the monotherapy studies in this poster piece in the UK. That was not by design. We're running a phase II sarcoma, a variety of different sarcomas with the commonality being pulmonary involvement in all cases. There is no good standard of care here and we're well into enrollment on that, and the prime sight there is San Antonio.

Once we finish that study we will probably be doing a three arm study looking at reovirus versus docetaxel plus or minus reovirus on the other arms. So those will be the other arms. And that will be a pivotal study.

15:00
The NCI is running two phase II’s for us, one in melanoma on monotherapy and an interesting one in ovarian cancer where we’re treating intraperitoneally and intravenously simultaneously. And that’s mostly to get basal response rates in those patient populations.

We just recently announced a co-therapy study with cyclophosphamide, which is a very old line chemotherapeutic. Low dosages, it’s immunomodulatory, it dampens a variety of elements of the immune system. And in animals we found that if you take the edge off the immune system reovirus goes from being quite a good therapy to being curative in most cases. So we felt compelled to investigate this. This is really one of those things that you really need to take a look at. We just recently approved in the first part of study, which is using actually the therapeutic dose of Reolysin throughout, the 3x10¹⁰ dosage, is to find the actual low-dose cyclophosphamide that gives us the immunomodulatory that we require to actually start getting the more robust tumor responses. It’s a very very edgy study. But if it works out the way it does in animals, I think it's going to fundamentally change how we view viral therapy. And we are all quite excited and just a tad nervous about it, I have to admit to.

Our mainstream combination studies are all underway. We’re just finishing off the dose escalation components, and I'll go straight into phase II, and we're combining Reolysin with chemotherapeutics like docetaxel, carboplatinum, and the gemzar study. And those are all going on in the UK at this time. Once we are finished we’ll go into phase II’s in the UK and the plan is to get at least two of those studies into parallel phase II's in the United States at the same time.

The reason we’re interested co-therapy is that Reolysin is strongly synergistic with virtually everything. And I mean very strongly synergistic, it’s just not radiation, it’s virtually every chemotherapeutic. We’re just going through the new line biologics right now and we’re seeing a similar trend. Most of this work was done at the National Cancers Institute, but we’ve confirmed it at a number of other places. Just to make sure we trust the synergy data.

But honestly, again, when you look at the coefficients, I’ve never seen anything this synergistic in the lab. It’s really quite remarkable that you get this level of synergy with a live biologic.

17:16
This is the sort of thing that you see, it doesn't really matter what agent it is, this is Gemzar, in this particular case. This is work done out of Cornell, presented earlier this year at ACR. Kind of a typical experiment. ….in this case…it’s a colorectal tumor….pointed out, why would you treat with Gemzar, but it was what was available in the lab.

If you treat with Reolysin you get some benefit, if you treat with Gemzar by itself you see very typical for Gemzar, which is a suppression of tumor growth until you quit treating, which is the second arrow, and then it takes off.

And when you combine the two ….percent of the animals don’t have tumors anymore and 99.5 to 99% that are also durable. We see this with virtually every drug. Combined with the taxines, combined with any of the platinum group, Gemzar, you see the same thing with radiation. It’s really striking especially when you do the math and do the coefficients. The levels of synergy that you see with this agent with existing therapeutics.

Just quickly for data, we trade both on NASDAQ and Toronto. Our shareholder base is pretty much evenly spread between the US, Canada, and Europe. Which is what you would expect given that much of our work is done in Europe and the United States. And we have cash until Q2 ’09 with our anticipated programs.

Quickly and in summary, we’ve finished our first six studies, we have now have seven studies of on own ongoing, in the UK and the US, and the two NCI studies will be on top of that. We will finish most of those phase II components in 2008, and then move to pivotal programs later next year. Every single study we’ve had, has had clinical responses, and virtually consistent tox data, which is reassuring. Our IP bases is developing nicely. And as I said earlier, we have the resources to do all what I talked to you about today….And I know it’s kind of nerdy, but I like manufacturing…so we can actually produce this at a commercial scale at a cost that is about in a range of about 2% cost of goods at the 100L scale, which it will go down off of that, which for a biologic is somewhat amazing. I mean biologics don’t really cost that little. So we’re quite pleased with that. So I would just like to thank you for your attention.

Oncolytics Biotech Inc. to Present at BIO-Europe 2007

CALGARY, AB,
November 8, 2007

Dr. Brad Thompson, President and CEO of Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY), will present a corporate overview of the Company at the BIO-Europe 2007 13th Annual International Partnering Conference on Tuesday, November 13, 2007. The event is being held at the CCH-Congress Center, Hamburg, Germany from November 12-14, 2007.

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 http://www.oncolyticsbiotech.com/

The presentation times are subject to change. This release and the presentation related thereto contain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company’s control and which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. Such risks and uncertainties include, among others, the efficacy of REOLYSIN® as a cancer treatment, the success and timely completion of clinical studies and trials, uncertainties related to the research and development of pharmaceuticals and uncertainties related to the regulatory process. 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 FURTHER INFORMATION PLEASE CONTACT:

For Canada:
Oncolytics Biotech Inc.
Cathy Ward
210, 1167 Kensington Cr NW
Calgary, Alberta T2N 1X7
Tel: 403.670.7377
Fax: 403.283.0858
cathy.ward@oncolytics.ca

For Canada:
The Equicom Group
Nick Hurst
325-300 5th Ave.
SWCalgary, Alberta T2P 3C4
Tel: 403.538.4845
Fax: 403.237.6916
nhurst@equicomgroup.com

For United States:
The Investor Relations Group
Erika Moran
11 Stone St, 3rd Floor
New York, NY 10004
Tel: 212.825.3210
Fax: 212.825.3229
emoran@investorrelationsgroup.com

News Round Up

• Oncolytics Biotech Scientific Advisory Board Member, Dr. Alan J. Tuchman, appointed Board Director for Duska Therapeutics, Inc. See article here.

• Oncolytics Biotech Inc. insiders buy shares. See article here.

• Researchers say biologic therapy may kill cancer without hurting patient. See the video here, or read the article here.

Oncolytics Biotech Inc. Announces 2007 Third Quarter Results

Edited. Read the complete report here.

CALGARY, AB, --- October 30, 2007

Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) today announced its financial results and highlights for the three and nine-month periods ended September 30, 2007.

Third Quarter Highlights

• Announced positive interim results from a U.K. Phase Ia/1b combination REOLYSIN® and radiation trial for patients with advanced cancers - including partial and remote responses in patients with a variety of advanced cancers;
• Commenced patient enrolment in a multi-centre, combination REOLYSIN® and docetaxel Taxotere®) systemic administration trial in the U.K.;
• In October, received approval from the U.K. regulatory authorities to begin a combination REOLYSIN® and cyclophosphamide trial for patients with advanced cancers;
• Secured two additional U.S. patents, for a total of more than 150 issuedpatents worldwide; and,
• Presented preclinical work at the National Cancer Research Institute Conference in Birmingham, U.K. demonstrating for the first time how reovirus-infected melanoma cells stimulate dendritic cells to prime the immune system against cancer cells.

“With positive results being reported from our clinical trial program in the U.K. and the U.S., seven trials actively enrolling, an additional combination trial approved to begin and an expanding intellectual property portfolio supporting our technology, Oncolytics is looking forward to making substantial progress through the balance of 2007 and 2008,” said Dr. Brad Thompson, President and CEO of Oncolytics.


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

This discussion and analysis should be read in conjunction with the unaudited financial statements of Oncolytics Biotech Inc. as at and for the three and nine months ended September 30, 2007 and 2006, and should also be read in conjunction with the audited financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contained in our annual report for the year ended December 31, 2006. The financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”).

FORWARD-LOOKING STATEMENTS
The following discussion contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including our belief as to the potential of REOLYSIN® as a cancer therapeutic and our expectations as to the success of our research and development and manufacturing programs in 2007 and beyond, future financial position, business strategy and plans for future operations, and statements that are not historical facts, involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, among others, the need for and 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, our ability to successfully commercialize REOLYSIN®, uncertainties related to the research, development and manufacturing of pharmaceuticals, uncertainties related to competition, changes in technology, the regulatory process and general changes to the economic environment. Investors should consult our 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. Forward-looking statements are based on assumptions, projections, estimates and expectations of management at the time such forward-looking statements are made, and such assumptions, projections, estimates and/or expectations could change or prove to be incorrect or inaccurate. Investors are cautioned against placing undue reliance on forward-looking statements. We do not undertake to update these forward-looking statements.

OVERVIEW
Oncolytics Biotech Inc. is a Development Stage Company
Since our inception in April of 1998, Oncolytics Biotech Inc. has been a development stage company and we have focused our research and development efforts on the development of REOLYSIN®, our potential cancer therapeutic. We have not been profitable since our inception and expect to continue to incur substantial losses as we continue research and development efforts. We do not expect to generate significant revenues until, if and when, our cancer product becomes commercially viable.

General Risk Factors
Prospects for biotechnology companies in the research and development stage should generally be regarded as speculative. It is not possible to predict, based upon studies in animals, or early studies in humans, whether a new therapeutic will ultimately prove to be safe and effective in humans, or whether necessary and sufficient data can be developed through the clinical trial process to support a successful product application and approval.

If a product is approved for sale, product manufacturing at a commercial scale and significant sales to end users at a commercially reasonable price may not be successful. There can be no assurance that we will generate adequate funds to continue development, or will ever achieve significant revenues or profitable operations. Many factors (e.g. competition, patent protection, appropriate regulatory approvals) can influence the revenue and product profitability potential.

In developing a pharmaceutical product, we rely upon our employees, contractors, consultants and collaborators and other third party relationships, including our ability to obtain appropriate product liability insurance. There can be no assurance that these reliances and relationships will continue as required.

In addition to developmental and operational considerations, market prices for securities of biotechnology companies generally are volatile, and may or may not move in a manner consistent with the progress being made by Oncolytics.

See also “RISK FACTORS AFFECTING FUTURE PERFORMANCE” in our 2006 MD&A.

REOLYSIN® Development Update for the Third Quarter of 2007
We continue to develop our lead product REOLYSIN® as a possible cancer therapy. Our goal each year is to advance REOLYSIN® through the various steps and stages of development required for potential pharmaceutical products. In order to achieve this goal, we actively manage the development of our clinical trial program, our pre-clinical and collaborative programs, our manufacturing process and REOLYSIN® supply, and our intellectual property.

Clinical Trial Program
Our clinical trial program includes eight clinical trials of which seven are being conducted by us and one is being sponsored by the U.S. National Cancer Institute (“NCI”). In the third quarter of 2007, we announced positive interim results from our U.K. Phase Ia/Ib combination REOLYSIN® and radiation clinical trial. As well, we commenced patient enrollment in our U.K.
combination REOLYSIN®/docetaxel clinical trial, increasing our actively enrolling clinical trials to seven.

Clinical Trial Results
In the third quarter of 2007, we announced positive interim results from our U.K. Phase Ia/Ib combination REOLYSIN® and radiation clinical trial for patients with advanced or metastatic cancers. As of September 28, 2007, 22 patients had been treated with 15 having completed the study. Five patients withdrew from the study, and two patients are still on study.

A total of 11 patients in the Ia portion of the trial have received two intratumoural treatments of REOLYSIN® at dosages of 1x108, 1x109, or 1x1010 TCID50 with a constant localized radiation dose of 20 Gy given in five fractions. Of these 11 patients, three patients (oesophageal, squamous skin carcinoma and squamous cell scalp) experienced significant partial responses.

One month following treatment, the oesophageal patient experienced a 28.5% reduction in the target tumour, with stable disease noted in four, non-treated tumours. At two and three months, the target tumour had shrunk 64%, with stable disease continuing
in the four non-treated tumours, including a 15% volume reduction in non-treated mediastinal disease that was maintained for more than six months. The squamous skin cancer patient experienced a 50% reduction in the target tumour, as well as stable disease in two, non-treated tumours at one, two and three months post treatment. The squamous cell scalp patient experienced stable disease in the target tumour for two months which then became a partial response at three months. This patient also experienced stable disease in one non-treated tumour measured at three months post-treatment.

Patients in the Ib portion received either two, four or six intratumoural doses of REOLYSIN® at 1x1010 TCID50 with a constant localized radiation dose of 36 Gy given in 12 fractions. Of the six patients who have completed the study to date, three patients (colorectal, melanoma and lung cancer) experienced tumour regression in the target tumour, as well as stable disease in nontreated tumours.

The colorectal patient experienced a partial response with a more than 50% regression in the target tumour as well as stable disease in four, non-treated tumours measured at one month following treatment. A melanoma patient experienced minor regression in the target tumour as well as stable disease in two, non-treated tumours at one and two months following treatment.
A lung cancer patient experienced minor regression in the target tumour, as well as stable disease in three, non-treated tumours at two months following treatment.

The treatment has been well tolerated, with mostly Grade 1 or 2 toxicities noted including fatigue, lymphopenia, fever, and neutropenia. Grade 3 toxicities including cellulitis, dysphasia and diarrhoea were related to disease progression and not to the combination treatment. Viral replication was unaffected by cellular irradiation.

The primary objective of the Phase Ia/Ib trial was to determine the maximum tolerated dose (“MTD”), dose limiting toxicity (“DLT”), and safety profile of REOLYSIN® when administered intratumourally to patients receiving radiation treatment. A secondary objective is to examine any evidence of anti-tumour activity. Eligible patients include those who have been diagnosed with late stage advanced or metastatic solid tumours that are refractory (“have not responded”) to standard therapy or for which no curative standard therapy exists.

Clinical Trials – Actively Enrolling
At the end of the third quarter of 2007, we were actively enrolling in seven clinical trials. In the third quarter of 2007, we commenced enrollment in the following study:

U.K. Combination REOLYSIN® Docetaxel Clinical Trial
We commenced patient enrolment in our U.K. clinical trial to evaluate the anti-tumour effects of systemic administration of REOLYSIN® in combination with docetaxel (Taxotere®) in patients with advanced cancers including bladder, prostate, lung and upper gastro-intestinal. In preclinical studies, the combination of REOLYSIN® and various taxanes including docetaxel has
been shown to be synergistic against a variety of cancer cell lines.

The trial has two components. The first is an open-label, dose-escalating, non-randomized study of REOLYSIN® given intravenously with docetaxel every three weeks. A standard dosage of docetaxel will be delivered with escalating dosages of REOLYSIN® intravenously. A maximum of three cohorts will be enrolled in the REOLYSIN® dose escalation portion. The second component of the trial will immediately follow and will include the enrolment of a further 12 patients at the maximum dosage of REOLYSIN® in combination with a standard dosage of docetaxel.

Eligible patients include those who have been diagnosed with advanced or metastatic solid tumours such as bladder, prostate, lung or upper gastro-intestinal cancers that are refractory to standard therapy or for which no curative standard therapy exists. The primary objective of the trial is to determine the MTD, DLT, recommended dose and dosing schedule and safety profile of REOLYSIN® when administered in combination with docetaxel. Secondary objectives include the evaluation of immune response to the drug combination, the body’s response to the drug combination compared to chemotherapy alone and any evidence of anti-tumour activity.

Pre-Clinical Trial and Collaborative Program

In the third quarter of 2007, we announced that a poster presentation entitled “Reovirus Infection of Human Melanoma Cells Supports Priming of Anti-Tumour Cytotoxic T Cell Immunity” was presented by Dr. Robin Prestwich of CR-UK Clinical Centre, Leeds Institute of Molecular Medicine, University of Leeds, U.K at the National Cancer Research Institute Cancer
Conference in Birmingham, U.K.

In this study, the investigators infected melanoma cell lines with reovirus. The reovirus-infected cell lines stimulated the maturation of dendritic cells, which in turn educated cancer-killing T cells to attack and kill the melanoma cells.

Manufacturing and Process Development
We continued to have REOLYSIN® manufactured in order to supply our current and future clinical trial program. In the third quarter of 2007, our manufacturing activity was focused on the completion of the vial filling and packaging of the production runs that were completed earlier in 2007. Also in the third quarter of 2007, we continued process development that examined the scale up of our manufacturing process increasing the batch size from our present GMP scale of 20-litres to 40-litres and then to 100-litres.

Intellectual Property
In the third quarter of 2007, two U.S. patents were issued. At the end of the third quarter of 2007, we had been issued over 150 patents including 23 U.S. and six Canadian patents as well as issuances in other jurisdictions. We also have over 180 patent applications filed in the U.S., Canada and other jurisdictions.

Financial Impact
We estimated at the beginning of 2007 that our monthly cash usage would be approximately $1,400,000 for 2007. Our cash usage for the nine months ending September 30, 2007 was $10,849,863 from operating activities and $635,815 for the purchases of intellectual property and capital assets which is in line with our estimate. Our net loss for the nine month period ending September 30, 2007 was $11,556,714.

Cash Resources
We exited the third quarter of 2007 with cash resources totaling $28,191,464 (see “Liquidity and Capital Resources”).

Expected REOLYSIN® Development for the Remainder of 2007

We plan to continue to enroll patients in our seven clinical trials and expect to add an additional clinical co-therapy trial. We believe that the NCI sponsored melanoma clinical trial will receive approval to commence in 2007. We believe we will complete enrollment in our U.K. Phase Ia/Ib clinical trial by the end of 2007 and complete enrollment in our Phase II combination REOLYSIN®/radiation and chemotherapy co-therapy studies in 2008. Also, our process development activity will focus on scale up studies and the examination of a lyophilization process for REOLYSIN®.

Based on our expected activity in 2007, we continue to estimate our average monthly cash usage to be $1,400,000 per month (see “Liquidity and Capital Resources”).

Recent 2007 Progress
On October 23, 2007, we announced receipt of a letter of approval to commence our clinical trial using intravenous administration of REOLYSIN® in combination with cyclophosphamide, a chemotherapeutic agent as well as immune modulator, in patients with advanced cancers.

The trial is an open-label, dose-escalating, non-randomized trial of REOLYSIN® given intravenously with escalating doses of cyclophosphamide. A standard dose of REOLYSIN® is administered intravenously over five consecutive days, while an intravenous dose of cyclophosphamide is administered three days before REOLYSIN® treatment and continues through the course of the treatment cycle. The total number of patients studied will depend on the number of dose levels tested, but it is anticipated to be approximately 30 patients.

Eligible patients include those who have been diagnosed with advanced or metastatic solid tumours including pancreatic, lung and ovarian cancers that are refractory to standard therapy or for which no curative standard therapy exists. The primary objectives of the trial include determining the Minimum Effective Immunomodulatory Dose of cyclophosphamide to obtain successful immune modulation. Secondary objectives include the safety profile of the combination and gathering any evidence of anti-tumour activity.

Transcript: Brad Thompson Conference Call

The following is posted for informational purposes only and so that the text can be searched and referenced. Although I have made every effort to ensure accuracy, no warranties are made or implied. I encourage everyone to listen to the call here.

Transcript of Brad Thompson's Conference Call made October 24, 2007.

Good afternoon, ladies and gentlemen. And welcome to Oncolytics Biotech’s clinical program update call. At this time, all participants are in listen only mode.

Following the presentation we will conduct a question and answer session for analysts and institutional investors. I’d like to remind everyone that this conference call is being recorded today, Wednesday, October 24 at 2 P.M. eastern time.

I will now turn the conference over to Dr. Brad Thompson, President and Chief Executive Officer of Oncolytics. Dr. Thompson, please go ahead.

Brad Thompson: Thank you Luke.

Good day and welcome to the Oncolytics biotech, Inc. web cast. My intention today is to provide information regarding the cyclophosphamide Reolysin co-therapy trial announced yesterday, and also to provide brief update on our clinical trial and manufacturing program for our lead product Reolysin.

Before I begin, I would remind you that certain matters discussed during this web cast will constitute forward-looking statements that are subject to risk and uncertainties relating to Oncolytics future financial, clinical, or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. Those factors which may are detailed with Canadian and US security commissions which can be accessed at www.sedar.com and www.sec.gov. Please note that Oncolytics is under no obligation to update any forward-looking statements discussed today and investors are cautioned not to put undue reliance on these statements

As a reminder, Reolysin is Oncolytics’ formulation of the reovirus. A naturally occurring virus widely found in the environment. It has not been genetically altered or engineered. Reolysin is neither a gene therapy nor a cancer vaccine.

It is composed of a fully replication competent virus that is able to directly kill tumor cells that have an activated Ras pathways. Approximately two thirds of all cancers and virtually all metastatic disease has an activated Ras pathway. This is very important when you consider the potential of this product in a commercial context. Ras targeted therapeutics have potentially broad applications in cancer therapy.

For the last 18 months we have learned that Reolysin causes the death of cancer cells in two ways:

First, as the results of the normal viral infection of the Ras activated cell. The virus enters these cells then replicates which then causes subsequent cell death. Virus is therefore directly cytotoxic. The second is a result of the first. Various studies conducted by our colleagues in the US and the UK have verified that the viral induced cell death generates a secondary immune response against tumors.

Oncolytics clinical development strategy for Reolysin integrates both clinical and business objectives. Our business objective is to maximize the potential usage and therefore sales of Reolysin. We are developing Reolysin as an appropriate alternative to or addition to the standard of care treatment of a broad range of cancers. This business objective can be achieved however after regulatory approval of Reolysin. Those approvals require a carefully planned and executed clinical program designed to prove safety and efficacy of Reolysin. At the present time, we are examining the use of Reolysin using either a local or intravenous delivery depending on the trial. We are currently studying Reolysin as a monotherapy and in combination with radiation and chemotherapy. To date we have treated 139 patients in our clinical trials. Reolysin has been well-tolerated and anti-tumor activity has been observed in all trials reported on to date.

Results from two separate phase I IV monotherapy studies, one US and one in the UK, have been presented. Several important points from these studies are relevant to future studies.

First is that the product was well tolerated in humans at the highest dose and with multiple administrations. This finding allows us to examine Reolysin in a phase II environment, which we are now doing. Second is that the product is produces specific tumor clinical responses in patients at sites in the body away from the sites of administration. These responses are measured by objective tumor response, tumor marker response, and/or confirmed histopathology. These effects are noted in patients with a functional immune system that respond to in the exposure of the virus. The immune system apparently does not block the virus from reaching the tumor and replicating within it. In other words we use Reolysin on its own, we know that it can navigate past various physical barriers and the body's immune defenses, reaching and infecting tumors in a variety of locations in the body and then replicating in them. As a result we've proceeded to multiple phase II program examining the effects of Reolysin delivered intravenously as a monotherapy, sarcomas, and in conjunction with the National Cancer Institute, melanomas and ovarian cancer. Both of these studies will help us to determine the products future direction as a monotherapy.

Results emerging from our monotherapy program are very exciting, however, some equally exciting basic research conducted in a number of laboratories has indicated that immune modulation may improve response rate in clinical studies rather markedly. The exact mechanism has not yet been determined. A number of studies using cyclosporine or cyclophosphamide in combination with Reovirus in animal models, demonstrated increased tumor response, and/or survival, compared with the virus itself.

Most significantly, in many cases, the animals became tumor free after treatment with the combination. Further animal studies have revealed that the best dosage regime that minimizes toxicity and retains efficacy is when cyclophosphamide is administered before Reolysin administration begins. This indicates that transient immune modulation may work best.

The study announced yesterday follows this dosage regime. The varying doses of cyclophosphamide given and day minus 3 combined with constant IV Reolysin from day 1 to day 5 at 3x10th TCID 50 per day, which is a standard IV dosage.
The primary goal of this study is to measure the minimum dose of cyclophosphamide that cause immunomodulation measured in number of indicators including anti-body levels, T and B cell responses to determine when immunomodulation occurs. This is one of the studies that if successful will be heralded as a major breakthrough.

Turning to our review of our ongoing monotherapy trials, we are continuing to enroll patients in our phase I component of our glioblastoma in the US. The phase II sarcoma in the US is all also actively enrolling.

Enrollment in the NCI sponsored phase II melanoma study should commence in the very near future as NCI filed its protocol with the USFDA this past spring. Our combination therapy studies continue at pace as well, as noted at the AACR meeting today in San Francisco, we have one patient left to treat in our UK-phase Ia/Ib trial testing intratumoural administration of Reolysin in combination with radiation. We issued a news release on September 28th outlining positive interim results of that trial study and further results of that Ia/Ib trial are being presented at the AACR conference as we speak.

UK phase II combination trial testing local delivery of Reolysin in combination with radiation is also ongoing. Enrollment in the dose escalation component of our three drug combination studies in the UK is also continuing. Once the dose escalation components are completed, we’ll move directly into constant dose cohorts for all three studies.

As we said in the past the goals not only to come up the product as efficacy, but one that is commercially viable and can be produce a commercial scale. From this basis we have advanced our manufacturing initiatives parallel to clinical development of the product. Recently we have completed the initial scale up of our manufacturing process to 100 liters, which is for us commercial scale.

Through the exercise we have instituted a number of process improvements that have resulted in increase of total yield. Once we have confirmed this data will be reporting on the specific results of the 100 L scale. That concludes my comments today. I’d like to thank you for your time and attention this afternoon and remind you that this presentation will be archived on our website for 90 days. Operator we are now ready for questions.

Operator Luke: Ladies and gentlemen will now conduct the question and answer session. Your first question comes from David Miller from Biotech Stock Research, please go ahead.

David Miller: Hey good morning guys from the AACR conference. Thanks for having the call and updating us. The first question I have is that with the result that you are seeing in and combination with particularly cyclophosphamide is that… at what impact will that have on the trials are ready have running or what trials you might launch next.

BT: That's a very interesting question, if you can parallel the results we saw animals to humans using cyclophosphamide in combination with Reovirus I think you're going to see a...and I hate to say this because I think it cliché…a major paradigm shift in the viral therapy area.

What we're faced with is a relatively good response rates with the product as a monotherapy. And if we've prove that for this study as a monotherapy it certainly would be more than suitable to carry on and get the product approved. But it would always be less than the theoretical and the use of immune modulators is in our opinion and many other people’s opinion a possible way to push these responses up to the theoretical maximum. If we get that it's going to entail a complete rethinking of this whole viral therapy area. If you are getting response rates up to what like what we are seeing in animals. We have a bit of a conundrum because then you have a new therapy coming through that will be completely competitive with frontline therapies all by its self. I think we'll be a little bit reluctant to combine cyclophosphamide, Reolysin and say anyone of the taxhol in one cocktail. So our plan would be if the results are as we hope they are in the cyclophosphamide study to move directly to a fairly large phase 2 study and then really pin down what a registration path would be with that.

DM: You've done some humans with this combo though haven’t you with Reolysin they’ve got some cyclophosphamide, or no?

BT: No, we have not. In some of our other studies have immune modulation by default, if you want to think of it that way. Certainly radiation co-therapy, sterilization of immune system if you want to call it that in the radiation field. When you look at antibody responses radiation study, which is now out, you don't get nearly the antibody responses with Reolysin combined with radiation than you would with Reolysin alone. Also things like gemzar immune modulator…and we are conducting a study in the UK so we have a number of “immune modulation-ish” components going on in existence. But this one is the first deliberate attempt to directly modulate the immune system at dosages that are clearly sub-clinical for cyclophosphamide as a chemotherapeutic. This is directly interfering with the immune system in a way that should result, again if it mirrors the animal model, in some very interesting clinical responses.

DM: So the key mechanism of action here that you think is that is something as simple that it down regulates the antibody response so you're just not having as many of your viral particles mopped up by the immune system.

BT: I think we have a lot of correlation but no causation in the immune data we have to date. I’m not sure if antibodies are or a non-antibody B-cell subclass or one of those T-cells subclasses that we are down regulating.

As you know, a lot of immune modulators down and up regulate certain classes simultaneously. That certainly the case…it's one of those things that I don’t think we’ll see until we look for it. And for all I know the first signal that we’re getting is that we’re seeing very different clinical responses and we’ll have to backtrack to find out what it is.

This is really groundbreaking work, this particular study, I think it will get us away from the correlation and get us into the causation specifically in the immune system.

DM: You also mentioned that 100L scale up going, congratulations on that, I know that was a big stepping stone for talking to partners. Can you go over again what's next in that process and how soon the manufacturing lots from that we’ll be seeing in the clinical trials.

BT: We’re currently working at the 40L scale with our first clinical lots starting to come through with that…which is, we were working at the 20L scale before. The key for us is for the manufacturing to get up to that level is actually two purposes. One is thinking ahead towards future sales of course. And as you know with biologics a lot of the process look interesting in the clinic, but then people can make them or they cost too much or something like that or they are not reproducible.

So we've spent a lot of time and energy specifically on that for the long term view. The medium term view is to produce enough clinical material to support very large scale studies which are coming right up to the gates now. And one 40L batch, just as an example, is enough to crank out more than 20,000 dosages for our maximum IV dosages. Assuming we near those at the 100L scale we can run a pivotal study on a 100L run. And that’s critical. Critical supply in biologics is often constricting factor in enrollment, and we won't have that.

The third part of course is the partnering. Partners are shy at the biologic processes and they like to see it at a commercial scale. A 100L should be to commercial scale for us a 100L facility would crank up between a million and a million and a half dosages per year just out of a single tank. And that’s certainly enough for a launch of a product.

DM: Alright, and just make sure that I’m certain about this, you have produced at the 100L scale?

BT: We’ve done our initial 100L run and we are just re-doing it, because we have to confirm these things. Once does not a process make. Twice does. So later this year will be completing that work and will certainly announce the final data off of that. And to finish off your question (then we’ll transfer over), we’ll do clinical lots, the expectation is we’ll do our first 100L clinical lot in 2008.

DM: Thanks very much for answering my questions.

BT: Thank you.

Luke: Your next questions comes from Joe Pantginis from Canaccord Adams

Joe Pantginis: Hi Brad, good afternoon, thanks for doing the call. A couple of quick question, really sort of tied together, granted pivotal programs, etc., will be driven by the data, and you know, the new cyclophosphamide study, but with that in mind can you give us an idea of what your initial commercialization strategy might look like and just tying into that can you remind us again, what your partnering strategy is up to date right now. Thanks a lot.

BT: As we talked about before, one of the good and bad things about Reolysin is that it’s very broadly active within each cancer indication and is apparently synergistic with virtually everything at least in the lab, which complicates your clinical studies in the early days. Presumably when we get it approved it would be lovely to have that kind of activity. So what we’ve done is set up a clinical program that…basically the two sides of the coin. We’ve picked on the monotherapy side, I would certainly focus time and attention on the registration paths on the sarcoma study. It’s one of the few monotherapy areas where I could believe that we can actually make Reolysin the standard of care for particular indication. Patients with sarcoma that have pulmonary involvement don't have a standard care. So something coming through could be considered that. For the rest of the world, for the rest of things, we have to be looking into being incorporated with existing standards of care. And certainly the results from the three drug combination studies that are ongoing in the UK, plus the radiation combination therapy, will lead toward registrations paths and we believe that probably two of those will be ready to move on to the registration paths. It's really hard to anticipate which of the drug combinations. I’m pretty comfortable that there is a radiation co-therapy registration path. So you’re looking at a monotherapy, probably in a sarcoma, or a related disease. The combination with radiation moving in and one of the drug combinations. Again, as you just said the wild card is the cyclophosphamide study. If it doesn't work I will be glad that we had done it, because then we know that immune modulation at least of that kind doesn’t make a difference. And that’s just important to know. I think it would bother me for the rest of my life if we didn’t try it. It’s too enticing to see what a difference it makes. Because if it looks like it does in the animals then would be very very glad we did it. If it works on up side then all bets are off. It will really change our thinking about everything.

With respect to partnering people that we talk to are being consistent with what they would like to see out of this program from the very start. They want to see that we can make it, the product, they want to see if we can generate an IP base, the want to see that it’s safe in relatively large number of patients and we’ve certainly passed that milestone. And to see a variety of early phase II data, which we’ll have for people starting next year. I would anticipate that once we have that data in hand than then that process will proceed as we all hope it does.

JP: Great. Thanks Brad.

Luke: Your next question is a follow up from David Miller of Biotech Stock Research

DM: What’s the timing and the starting of the cyclophosphamide combo in humans.

BT: Starting from when the first patients enroll?

DM: When will the trial start and when will we see data?

BM: well we actually have more…we’ve paralleled tracked a lot of the approvals that you have to through in the UK, along with MHRA. I think that one or two committees left to go through. We have site initiations scheduled for next month. So, one would hope that we would be in enrolling certainly before Christmas. And I think given the interest sites have expressed in this. I know they are already looking for patients, enrollment should go fairly expeditiously. The big question is at what dosage do you see any modulation at. If you see it in that first cohort it would be done after those three patients. I mean we will enroll more patients at that constant dose but you'll be moving straight into a phase II very quickly. So it really depends on that dosage and I think we’ll be kind of wanting to report on it on a regular basis, in real time, because there is a huge amount of interest in this particular study. I have more were people look over my shoulder for this study that I ever thought possible. It's just a really interesting study and all the other viral companies of course are interested in its outcome too, because if it works out then expect you’ll see this kind of thing incorporated in other people’s therapies as well.

DM: Great thanks.

Luke: Dr. Thompson, there are no further questions at this time please continue.

BT: I’d just like to thank everybody for their time and attention. I know especially for all those people down at AACR down in San Francisco would have to take time out from other meetings to come and listen to the call. Again, if anybody has any comments or questions. They’d like to direct off line. They can contact us at Oncolytics Biotech Inc. would be happy to discuss anything. Thank you for your attendance.

Oncolytics Biotech Inc. Collaborators to Present Positive Interim Results of U.K. Phase Ia/Ib Combination REOLYSIN® and Radiation Clinical Trial

From the website.

10/24/2007 2:00:00 AM ET

CALGARY, AB, --- October 24, 2007 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) today announced that a poster presentation covering interim results from a U.K. Phase Ia/Ib combination REOLYSIN®/radiation clinical trial for patients with advanced or metastatic cancers is scheduled to be presented today at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics in San Francisco. The conference runs from October 22-26, 2007.

“We are very encouraged with the results of this trial to date,” said Dr. Brad Thompson, President and CEO of Oncolytics. “The data is supportive of our ongoing Phase II REOLYSIN®/radiation cotherapy trial in the U.K.”

The interim results of the Ia/Ib trial demonstrate that intratumoural treatment with REOLYSIN® and radiation is well tolerated and results in both local and remote anti-tumour activity in patients with a variety of advanced cancers. Oncolytics continues to enroll patients in the Ib portion of this trial, and is also actively enrolling patients in a Phase II trial examining this treatment combination.

The presentation, entitled “A Phase I study to evaluate the feasibility, safety and biological effects of intratumoural administration of wild-type Reovirus (REOLYSIN®) in combination with radiation in patients with advanced malignancies” will be delivered by Dr. Dean Harris of The Institute of Cancer Research, London.

These interim results were also presented in early October at the National Cancer Research Institute (NCRI) Cancer Conference in Birmingham, U.K.The poster presentation will be posted on the Oncolytics website today at www.oncolyticsbiotech.com.

NEWS RELEASE

From the website.


10/23/2007
5:13:16 PM ET
Oncolytics Biotech Inc. Announces Approval for U.K. Clinical Trial Investigating REOLYSIN® in Combination with Cyclophosphamide

CALGARY, AB, --- October 23, 2007 -
Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that it has received a letter of approval from the U.K. Medicines and Healthcare products Regulatory Agency (MHRA) for its Clinical Trial Application (CTA) to begin a clinical trial using intravenous administration of REOLYSIN® in combination with cyclophosphamide, a chemotherapeutic agent as well as immune modulator, in patients with advanced cancers.

The Principal Investigators are Dr. James Spicer of King’s College in London, Dr. Johann de Bono and Dr. Kevin Harrington of The Royal Marsden NHS Foundation Trust and The Institute of Cancer Research, London, and Professor Hardev Pandha of the Royal Surrey County Hospital NHS Trust, Surrey and Mount Alvernia Hospitals.

The Company also intends to host a conference call Wednesday, October 24, 2007 to provide an update on its expanding clinical program. The dial-in details appear below.

“We are really looking forward to treating patients in this trial,” said Principal Investigator Dr. James Spicer. “The hope is that it will provide valuable information about the relationship between oncolytic viral therapy and the immune response of the patient.”

The trial (REO 012) is an open-label, dose-escalating, non-randomized trial of REOLYSIN® given intravenously with escalating doses of cyclophosphamide. A standard dose of REOLYSIN® is administered intravenously over five consecutive days, while an intravenous dose of cyclophosphamide is administered three days before REOLYSIN® treatment and continues through the course of the treatment cycle. The total number of patients studied will depend on the number of dose levels tested, but it is anticipated to be approximately 30 patients.

Eligible patients include those who have been diagnosed with advanced or metastatic solid tumours including pancreatic, lung and ovarian cancers that are refractory (have not responded) to standard therapy or for which no curative standard therapy exists.

The primary objectives of the trial include determining the Minimum Effective Immunomodulatory Dose (MED) of cyclophosphamide to obtain successful immune modulation. Secondary objectives include the safety profile of the combination and gathering any evidence of anti-tumour activity.

Conference Call Details
Oncolytics will host a conference call at 2:00 p.m. EST on Wednesday, October 24, 2007, to provide a general update on its ongoing clinical trial program.

To access the conference call by telephone, dial 1-416-644-3414 or 1-800-731-5319. A live audio webcast will be available at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2054580 or through the Company’s website at http://www.oncolyticsbiotech.com/.

Please connect at least 15 minutes prior to the webcast to ensure adequate time for any software download that may be needed. A replay of the webcast will be available at www.oncolyticsbiotech.com and will also be available by telephone through October 31, 2007. To access the telephone replay, dial 1-416-640-1917 or 1-877-289-8525 and enter reservation number 21251367#.