Oncolytics gets rights to potential cancer drug

Oncolytics Biotech (TSX: ONC; NASDAQ: ONCY) of Calgary has swung a deal for a stake in closely-held British Canadian Biosciences, including potential rights to purchase BCB’s oncology product, which  is entering Phase 2 studies to treat solid tumours.

Under the accord, Oncolytics purchased all of the convertible preferred shares of BCB in exchange for 200,000 common shares of Oncolytics. If converted, Oncolytics would own 10% of the outstanding BCB common shares.

Oncolytics, which finished trading at $3.42 on the TSX Tuesday, has about 50 million shares outstanding.

“The purpose of the transaction is to gain access, at a future date, to a potential new oncology product,” Oncolytics said in a statement. Beyond this transaction, Oncolytics isn’t committed to future program support at BCB, which specializes in the development of peptides for the treatment of various conditions, including cancer.