Oncolytics Biotech Reports $28.8 Million Net Loss and Strategic Transition to Nevada

Oncolytics Biotech Inc. reported a net loss of $28.8 million for the fiscal year ending December 31, 2025, compared to a loss of $22.8 million in the previous year, reflecting a 26% increase in losses. The company's total operating expenses rose to $28.7 million from $25.5 million in 2024, driven primarily by increased general and administrative costs, which surged by 53% to $15.4 million. Research and development expenses decreased by 14% to $13.3 million, attributed to lower clinical trial costs as the company completed certain studies. As of December 31, 2025, Oncolytics had cash and cash equivalents of $5.2 million, down from $11.1 million a year earlier, raising concerns about its ability to continue operations without additional financing.

In 2025, Oncolytics made significant strides in its clinical development program for pelareorep, an immunotherapeutic agent targeting RAS-mutated tumors. The company received Fast Track Designation from the FDA for pelareorep in combination with bevacizumab and FOLFIRI for second-line metastatic colorectal cancer (mCRC), supported by clinical data showing a 33% objective response rate. Additionally, Oncolytics launched a randomized Phase 2 study for second-line RAS-mutated mCRC patients and reported promising results from its GOBLET study, particularly in squamous cell carcinoma of the anal canal, where the combination therapy achieved a 30% objective response rate.

The company is also undergoing a strategic transition, having filed for a domestication process to change its jurisdiction from Alberta, Canada, to Nevada, USA. This move is expected to be effective around March 31, 2026, and aims to enhance operational flexibility and access to capital markets. As part of this transition, Oncolytics has been actively engaging with potential partners to secure funding and support for its clinical trials, particularly for its gastrointestinal cancer programs.

Despite these advancements, Oncolytics faces substantial challenges, including the need for additional financing to sustain its operations over the next 12 months. The company has indicated that its current cash resources are insufficient to fund planned operations, raising doubts about its ability to continue as a going concern. Management is exploring various financing options, including public offerings and strategic collaborations, but acknowledges the uncertainty surrounding the availability of additional capital under favorable terms.

Looking ahead, Oncolytics aims to position pelareorep as a leading immunotherapy for gastrointestinal cancers, with ongoing efforts to expand its clinical programs and secure regulatory approvals. The company is focused on advancing its research and development initiatives while navigating the complexities of the biopharmaceutical landscape, including competition and regulatory hurdles.