The Patent Cliff is Coming, Driving Smart Money Towards Precision Oncology

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Issued on behalf of Oncolytics Biotech Inc.

Financial Post

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VANCOUVER, British Columbia, March 19, 2026 (GLOBE NEWSWIRE) — Equity-Insider.com News Commentary — Big money is moving back into biotech. Institutional investors have been writing some of the largest checks in years, with major financing rounds already closing in the first months of 2026[1], a sign that capital is rotating toward clinical-stage companies with validated science. That capital is not spreading evenly: it is concentrating on precision medicine, where the global oncology precision medicine market is projected to reach $303 billion by 2035[2], growing at approximately 9% annually as targeted cancer treatments move from promising idea to standard care. The five companies in this report, Oncolytics Biotech (NASDAQ: ONCY), OS Therapies (NYSE-A: OSTX), Sensei Biotherapeutics (NASDAQ: SNSE), Atossa Therapeutics (NASDAQ: ATOS), and Tango Therapeutics (NASDAQ: TNGX), sit inside that window.

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Institutions are positioning for what analysts at Goldman Sachs are calling a potential record-breaking year for pharma and biotech M&A[3], with the top 25 pharmaceutical companies holding a combined $1.3 trillion in acquisition firepower and pressure building to replace drugs going off patent. PwC’s 2026 pharma deals outlook confirms that companies with differentiated clinical profiles are commanding elevated premiums[4], as buyers link capital directly to clean, de-risked data in hard-to-treat cancers. This structural shift creates a window for the companies that meet this criteria.

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Oncolytics Biotech (NASDAQ: ONCY) is presenting new mechanistic and translational data at the American Association for Cancer Research (AACR) Annual Meeting in San Diego this April, data that adds scientific depth to the company’s push into some of cancer’s hardest-to-treat corners.

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The two abstracts, drawn from the AWARE-1 breast cancer study and the GOBLET gastrointestinal cancer trial, both center on the same question: can pelareorep, the company’s lead drug, make tumors more vulnerable to immunotherapy? The short answer, based on these findings, appears to be yes. In AWARE-1, biopsies showed pelareorep triggering the formation of tertiary lymphoid structures, essentially localized immune hubs that help the body mount a sustained attack on cancer cells.

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Tumors that would otherwise stay “cold” and invisible to the immune system showed signs of becoming “hot.” In GOBLET Cohort 1, patients with pancreatic cancer who showed early immune activation after four weeks on a pelareorep-based regimen lived longer without their disease progressing than those who did not, 7.5 months compared to 5.6 months. That same treatment combination previously posted a 62% objective response rate in first-line pancreatic cancer patients, more than double what chemotherapy alone has historically produced.

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The data matter because they help explain the results Oncolytics has already reported in colorectal cancer, where the backdrop is equally encouraging. The company recently launched REO 033, a randomized Phase 2 trial testing pelareorep alongside bevacizumab and FOLFIRI in second-line RAS-mutated, microsatellite-stable metastatic colorectal cancer, a patient group with very few good treatment options today.

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The trial builds on earlier results from REO 022, where the same drug combination produced 27 months of overall survival, 11.2 months of progression-free survival, and a 33% objective response rate, against 16.6 months, 5.7 months, and roughly 10% for the standard of care. The FDA took notice, granting the regimen Fast Track Designation earlier this year. The second-line KRAS-mutant colorectal cancer market is estimated at $3 to $5 billion annually. REO 033 expects to open its first site next month, with preliminary data targeted for year-end 2026.

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