RF CAPITAL REPORTS FIRST QUARTER 2025 RESULTS
(compared to Q1 2024)
AUA 1,2 and Revenue
Ending AUA 1,2 increased to $39.2 billion, up 6% or $2.1 billion driven by strong equity markets.
Revenue increased 11% to $99.4 million, led by 17% higher fee revenue and despite a 14% decrease in interest revenue.
Profitability and Cash Flow
Gross margin increased 5% to $55.4 million, consistent with the increase in revenue.
EBITDA 1 decreased 30% to $9.5 million due to higher operating expense 1 growth, primarily driven by mark-to-market adjustments on restricted and deferred share units (RSUs and DSUs) and foreign exchange (FX) translation adjustments, both of which represent gains or losses from the change in fair value of balance sheet items (balance sheet revaluation adjustments). Excluding these adjustments, EBITDA increased 3% to $12.7 million as gross margin growth outpaced operating expense growth.
Net loss increased to $4.1 million from $1.1 million in Q1 2024 primarily due to balance sheet revaluation adjustments.
Cash from operating activities was $5.4 million compared to ($11.8) million in Q1 2024, driven by higher fee revenue.
Free cash flow available for growth 1,3 was $2.0 million compared to ($13.3) million in Q1 2024, in line with higher operating cash flows.
Free cash flow 1,3 was ($1.8) million compared to ($15.7) million in Q1 2024, in line with the increase in free cash flow available for growth.
Balance sheet
Net working capital 1, 4 was $86.7 million, a decrease of $2.1 million from Q4 2024 as the reduction in liquid assets more than offset the decrease in current liabilities.
TORONTO, April 30, 2024 /CNW/ - RF Capital Group Inc. (RF Capital or the Company) (TSX: RCG) today reported revenue of $99.4 million in the first quarter of 2025, up 11% compared to the prior year. The increase in revenue was driven by AUA 1,2 of $39.2 billion, up $2.1 billion compared to prior year Q1 attributable mainly to strong equity markets, recruiting, and net new asset gains. With year-over-year growth in operating expenses 1 increasing 17% to $46.0 million due to balance sheet revaluation adjustments, EBITDA 1 decreased 30% to $9.5 million.
For more detail on our results, please refer to our MD&A for the period ending March 31, 2025.
1.
Considered to be non-GAAP or supplemental financial measures, which do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplemental Financial Measures" section of this release.
2.
AUA is a measure of client assets and is common in the wealth management business. It represents the market value of client assets managed and administered by us.
3.
Commencing Q1 2025, we have updated our free cash flow available for growth and free cash flow calculations. Prior period amounts have been revised to conform with the change. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this release.
4.
Commencing Q4 2024, we have updated our net working capital calculation to exclude the non-repayable portion of employee and other loans receivable from current assets. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this release".
Dave Kelly, President and Chief Executive Officer, commented,"Looking ahead in 2025, in light of the political and macroeconomic uncertainty in the markets, we will continue to be laser-focused on our three strategic growth pillars. We expect to continue deploying our free cash flow available for growth 1 to ensure our advisor teams have the products, services, and tools needed to provide superior client advice and service, as well as into recruitment. We are excited by the recent appointment of Kevin Shubley to SVP, Head of Advisor Experience and Growth. Kevin will lead the work to help our advisor teams grow, make their practices more valuable and to ensure a relentless focus on creating operational excellence. With our corporate teams, advisor teams, and the Executive Committee aligned, we are the best independent choice for Canada's top advisors and their clients." |
Outlook and Key Performance Drivers
Our current view on the drivers of our financial performance and profitability for 2025 is as follows:
AUA 1,2 is highly correlated with equity and bond market movements which are inherently difficult to predict and can be impacted by broader economic conditions. We expect to see increased volatility in these markets as a result of the new U.S. trade and tariff policies and their global ramifications. However, AUA will also be impacted by growth in our existing advisors' client assets and by recruiting and attrition.
Interest revenue is impacted by prime rate trends, which economists expect to continue to decline before stabilizing later in 2025.
Transaction activity underlying our corporate finance revenue could rebound but is more likely to remain subdued.
We expect inflation to remain in the Bank of Canada's target range for 2025, although there is uncertainty due to the new U.S. trade and tariff policies. We remain committed to finding operating cost savings and efficiencies in our business.
Free cash flow available for growth 1 is expected to be deployed towards advisor recruitment.
Preferred Share Dividend
On April 30, 2025, the board of directors approved a cash dividend of $0.233313 per Series B Preferred Share for a total of $1,073, payable on June 30, 2025 3 to preferred shareholders of record on June 13, 2025.
First Quarter 2025 and Annual Meeting of Shareholders
The Company will hold its annual meeting of shareholders (the Meeting), in person, at its head office in Toronto, on the 25 th floor, at 100 Queens Quay East, on Thursday, May 1, at 11:00 a.m. (EST).
The Chair of RF Capital's Board of Directors, Donald Wright, will host the Meeting. President and CEO, Dave Kelly, will then discuss the financial and strategic highlights of 2024, and provide a brief update on the Company's first quarter 2025 results and outlook for the remainder of the year. A live and archived audio webcast with slide presentation will be accessible at https://richardsonwealth.com/investor-relations/shareholder-meetings/.
The following table presents the Company's financial results for Q1 2025, Q4 2024 and Q1 2024.
1.
Considered to be non-GAAP or SFMs, which do not have any standardized meaning prescribed by GAAP under IFRS and are, therefore, unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this release.
2.
AUA is a measure of client assets and is common in the wealth management industry. It represents the market value of client assets that we administer.
3.
Calculated as fee revenue divided by commissionable revenue. Commissionable revenue includes fee revenue, trading commissions, and commissions earned in connection with the placement of new issues and the sale of insurance products.
4.
Calculated as operating expenses divided by gross margin. There have been no adjusting items impacting operating expenses beyond Q2 2023.
5.
Calculated as EBITDA divided by revenue. There have been no adjusting items impacting EBITDA beyond Q2 2023.
6.
Calculated as fee revenue, trading commissions, and interest on cash, divided by average AUA.
7.
Prior periods have been revised to reflect the internal consolidation of certain teams.
8.
Calculated as revenue less advisor variable compensation. We use gross margin to measure operating profitability on the revenue that accrues to the Company after making advisor payments that are directly linked to revenue.
9.
Operating expenses include employee compensation and benefits; selling, general, and administrative expenses; and transformation costs and other provisions.
Quarterly Results
The following table presents selected quarterly financial information for our eight most recently completed financial quarters.
1.
Considered to be non-GAAP or SFMs, which do not have any standardized meaning prescribed by GAAP under IFRS and are, therefore, unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this MD&A.
2.
AUA is a measure of client assets and is common in the wealth management industry. It represents the market value of client assets that we administer.
3.
Calculated as fee revenue divided by commissionable revenue. Commissionable revenue includes fee revenue, trading commissions, and commissions earned in connection with the placement of new issues and the sale of insurance products.
4.
Calculated as adjusted operating expenses divided by gross margin. There have been no adjusting items impacting operating expenses beyond Q2 2023.
5.
Calculated as adjusted EBITDA divided by revenue. There have been no adjusting items impacting EBITDA beyond Q2 2023.
6.
Calculated as fee revenue, trading commissions, and interest on cash, divided by average AUA.
7.
Prior periods have been revised to reflect the internal consolidation of certain teams.
8.
Calculated as revenue less advisor variable compensation. We use gross margin to measure operating profitability on the revenue that accrues to the Company after making advisor payments that are directly linked to revenue.
9.
Operating expenses include employee compensation and benefits; selling, general, and administrative expenses; and transformation costs and other provisions. Adjusted operating expenses are calculated as operating expenses less transformation costs and other provisions.
10.
In Q2 2023, we recorded a provision for a legacy employment litigation matter related to the 2019 sale of our capital markets business to Stifel Nicolaus Canada Inc. See Note 25 to the 2023 Annual Financial Statements.
11.
Commencing Q1 2025, we have updated our free cash flow available for growth and free cash flow calculations. Prior period amounts have been revised to conform with the change. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this MD&A.
Non-GAAP and Supplemental Financial Measures
In addition to GAAP prescribed measures, we use a variety of non-GAAP financial measures, non-GAAP ratios and SFMs to assess our performance. We use these non-GAAP financial measures and SFMs because we believe that they provide useful information to investors regarding our performance and results of operations. Readers are cautioned that non-GAAP financial measures, including non-GAAP ratios, and SFMs often do not have any standardized meaning and, therefore, may not be comparable to similar measures presented by other issuers. Non-GAAP measures are reported in addition to, and should not be considered alternatives to, measures of performance according to IFRS.
Adjusted Results
Some of our non-GAAP financial measures (including non-GAAP ratios) reflect adjusted results. In periods that we determine adjusting items have a significant impact on a user's assessment of ongoing business performance, we may present adjusted results in addition to reported results by removing these items from the reported results. Management considers the adjusting items to be outside of our core operating performance. We believe that adjusted results can enhance comparability across reporting periods and provide the reader with a better understanding of how management views core performance. Adjusted results are also intended to provide the user with results that have greater consistency and comparability to those of other issuers. All adjusting items affect reported expenses.
Adjusting items in this release include the following:
Transformation costs and other provisions: charges in connection with the transformation of our business and other matters. These charges encompass a range of transformation initiatives, including refining our ongoing operating model, outsourcing our carrying broker operations, realigning parts of our real estate footprint, and rolling out new strategy across the Company. There have been no transformation costs recorded since Q2 2023.
Amortization of acquired intangibles: amortization of intangible assets created on the acquisition of Richardson Wealth.
The following items are not included as adjusting items in this release:
Balance sheet revaluation adjustments such as mark-to-market adjustments on our share-based compensation (RSUs and DSUs) and FX translation
Costs related to our 2024 leadership transition
Other one-time expenses or recoveries that we consider to be normal course of business, unless otherwise specified
Non-GAAP Financial Measures
A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in our 2024 Annual Financial Statements. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components.
The primary non-GAAP financial measures (including non-GAAP ratios) used in this document are:
EBITDA
EBITDA is commonly used in the wealth management industry. We believe it provides a more accurate measure of our core operating results and is a commonly used basis for enterprise valuation. EBITDA is used to evaluate core operating performance by adjusting net income/(loss) to exclude:
Interest expense, which we record primarily in connection with debt
Income tax expense/(recovery)
Amortization and depreciation which we record in connection with leases, equipment, and leasehold improvements
Amortization related to intangible assets
Amortization in connection with investment advisor transition and loan programs. We view these loans as an effective recruiting and retention tool for advisors, the cost of which is assessed by management upfront when the loan is provided rather than over its term.
Adjusted EBITDA is defined as EBITDA excluding adjusting items.
Adjusted EBITDA margin is a non-GAAP ratio defined as adjusted EBITDA as a percentage of revenue.
The table in the "Quarterly Non-GAAP Information" section below reconciles our reported net income/(loss) to EBITDA and adjusted EBITDA.
Operating Expenses
Operating expenses are defined as total reported expenses less interest, advisor award and loan amortization, amortization and depreciation of premises and equipment, and amortization of intangibles. These are the expenses that factor into the EBITDA calculation discussed above.
Operating expense ratio is a non-GAAP ratio defined as operating expenses divided by gross margin.
Adjusted operating expenses are defined as operating expenses less adjusting items.
Adjusted operating expense ratio is a non-GAAP ratio defined as adjusted operating expenses divided by gross margin.
The table in the "Quarterly Non-GAAP Information" section below reconciles our reported total expenses to operating expenses and adjusted operating expenses.
Adjusted Net Income
Adjusted net income is defined as net income/(loss) from continuing operations less adjusting items.
The table in the "Quarterly Non-GAAP Information" section below reconciles our reported net income/(loss) to adjusted net income/(loss).
Commissionable Revenue
Commissionable revenue includes fee revenue, trading commissions, commission revenue earned in connection with the placement of new issues, and revenue earned on the sale of insurance products. We use commissionable revenue to evaluate advisor compensation paid on that revenue.
Net Working Capital
Commencing Q4 2024, we updated our calculation to exclude the non-repayable portion of employee and other loans receivable from current assets.
Net working capital represents the excess capital available to deploy in operations or growth and is comprised of current assets less current liabilities. We use net working capital to manage our liquidity as well as evaluate the efficiency of our operations. Net working capital is widely used across the wealth management industry and beyond to assess the financial health of entities and associated risks.
The table in the "Quarterly Non-GAAP Information" section below provides our net working capital calculation.
Free Cash Flow
Commencing Q1 2025, we have updated our free cash flow available for growth and free cash flow calculations to consider cash impacts of non-cash operating items and RF Capital preferred share dividends. Comparative periods have been revised to conform with the current period presentation.
Free cash flow available for growth is the cash flow the Company generates from its continuing operations before any investments in growth or transformation initiatives. We use this metric to evaluate the efficiency of our operations and assess the capital available to reinvest in growth activities. It is calculated as cash provided by/(used in) operating activities per the Consolidated Statement of Cash Flows add adjusting items and net outlays to attract new advisors to the firm, less lease payments, RF Capital preferred share dividends, and maintenance capital expenditures.
Free cash flow is the net cash flow that the Company generates from its continuing operations after investments in growth and transformation initiatives. We use free cash flow to evaluate the efficiency of our growth initiatives and assess the capital available after investments in growth. It is calculated as free cash flow available for growth less net outlays to attract new advisors to the firm, capital expenditures on growth initiatives, and adjusting items.
The table in the "Quarterly Non-GAAP Information" section below reconciles our reported cash provided by/(used in) operating activities to free cash flow for growth and free cash flow.
Supplementary Financial Measures
An SFM is a financial measure that is not reported in our financial statements, and is, or is intended to be, reported periodically to represent historical or expected future financial performance, financial position, or cash flows. The Company's key SFMs disclosed in this release include AUA, average AUA per team, recruited assets, and asset yield. Management uses these measures to assess the operational performance of the Company. These measures do not have any definition prescribed under IFRS and do not meet the definition of a non-GAAP measure or non-GAAP ratio and may differ from the methods used by other companies and, therefore, these measures may not be comparable to other companies. The composition and explanation of an SFM is provided in this release where the measure is first disclosed if the SFM's labeling is not sufficiently descriptive.
Quarterly Non-GAAP Information
The following table presents select quarterly non-GAAP financial information for our eight most recently completed financial quarters.
2025
2024
2023
($ thousands, except as otherwise indicated)
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Adjusted EBITDA:
Net income/(loss) from continuing operations - reported
(4,112)
1,290
(2,309)
2,714
(1,127)
(2,882)
(189)
(1,425)
Income tax expense/(recovery)
811
1,804
1,751
(252)
1,190
713
2,281
1,642
Income/(loss) before income taxes - reported
(3,301)
3,094
(558)
2,462
63
(2,169)
2,092
217
Interest
3,322
3,649
3,725
3,413
3,750
3,994
3,527
3,675
Advisor award and loan amortization
3,125
3,211
3,103
2,909
3,161
5,844
4,457
3,884
Amortization and depreciation of premises and equipment
2,694
2,677
2,660
2,749
3,049
3,385
3,414
3,366
Amortization of intangibles
3,626
3,607
3,563
3,537
3,516
3,464
3,442
3,439
EBITDA
9,466
16,238
12,493
15,070
13,539
14,518
16,932
14,581
Transformation costs and other provisions
-
-
-
-
-
-
-
413
Adjusted EBITDA
9,466
16,238
12,493
15,070
13,539
14,518
16,932
14,994
Adjusted operating expenses:
Total expenses - reported
58,718
51,979
52,246
51,104
52,705
53,055
49,732
51,310
Interest
3,322
3,649
3,725
3,413
3,750
3,994
3,527
3,675
Advisor award and loan amortization
3,125
3,211
3,103
2,909
3,161
5,844
4,457
3,884
Amortization and depreciation of premises and equipment
2,694
2,677
2,660
2,749
3,049
3,385
3,414
3,366
Amortization of intangibles
3,626
3,607
3,563
3,537
3,516
3,464
3,442
3,439
Operating expenses
45,951
38,835
39,195
38,496
39,229
36,368
34,892
36,946
Transformation costs and other provisions
-
-
-
-
-
-
-
413
Adjusted operating expenses
45,951
38,835
39,195
38,496
39,229
36,368
34,892
36,533
Adjusted net income:
Net income/(loss) from continuing operations - reported
(4,112)
1,290
(2,309)
2,714
(1,127)
(2,882)
(189)
(1,425)
After-tax adjusting items:
Transformation costs and other provisions
-
-
-
-
-
-
-
306
Amortization of acquired intangibles
2,398
2,398
2,398
2,398
2,398
2,399
2,398
2,398
Adjusted net income/(loss)
(1,714)
3,688
89
5,112
1,271
(483)
2,209
1,279
Net income/(loss) per common share from continuing operations:
Basic
(0.33)
0.01
(0.22)
0.11
(0.14)
(0.26)
(0.10)
(0.20)
Diluted
(0.33)
0.01
(0.22)
0.10
(0.14)
(0.26)
(0.10)
(0.20)
Adjusted net income/(loss) per common share:
Basic
(0.18)
0.17
(0.06)
0.26
0.01
(0.10)
0.09
0.02
Diluted
(0.18)
0.17
(0.06)
0.26
0.01
(0.10)
0.07
0.01
Cash flow:
Cash provided by/(used in) operating activities
5,401
14,442
15,977
5,162
(11,826)
2,836
16,624
25,741
Add/(less):
Transformation costs and other provisions (pre-tax)
-
-
-
-
-
-
-
413
Advisor loans net of repayments
1,820
1,270
6,290
7,088
2,249
13,224
557
(657)
Capital expenditures - maintenance
(1,995)
(1,004)
(790)
(901)
(419)
(797)
(348)
(619)
Lease payments
(2,172)
(2,169)
(2,196)
(2,257)
(2,266)
(2,041)
(2,044)
(2,273)
Preferred share dividends
(1,073)
(1,073)
(1,073)
(1,073)
(1,073)
(1,073)
(1,073)
(1,073)
Free cash flow available for growth
1,981
11,466
18,208
8,019
(13,335)
12,149
13,716
21,532
Transformation costs and other provisions (pre-tax)
-
-
-
-
-
-
-
(413)
Advisor loans net of repayments
(1,820)
(1,270)
(6,290)
(7,088)
(2,249)
(13,224)
(557)
657
Capital expenditures - growth (net of lease inducements)
(1,969)
(465)
(115)
928
(82)
936
225
(854)
Free cash flow
(1,808)
9,731
11,803
1,859
(15,666)
(139)
13,384
20,922
For the three months ended
($ thousands, except as otherwise indicated)
March 31,
2025
December 31,
2025
Net working capital:
Current assets:
Cash and cash equivalents (non-client portion)
86,748
88,556
Securities owned
820
1,593
Net receivable from brokers (non-client portion)
60,034
61,125
Employee and other loans receivable (current portion)
1,113
1,244
Other assets
15,156
14,758
Current liabilities:
Accounts payable and accrued liabilities
60,500
60,261
Provisions (current portion)
12,030
13,587
Lease liabilities (current portion)
4,676
4,699
Net working capital
86,665
88,729
About RF Capital Group Inc.
RF Capital Group Inc. is a TSX-listed (TSX: RCG) wealth management-focused company. Operating under the Richardson Wealth brand, the Company is one of the largest independent wealth management firms in Canada with $39.2 billion in assets under administration (as of March 31, 2025) and 23 offices across the country. The firm's Advisor teams are focused exclusively on providing strategic wealth advice and innovative investment solutions customized for high net worth or ultra-high net worth families and entrepreneurs. The Company is committed to maintaining exceptional fiduciary standards and has earned certification – determined annually – from the Centre for Fiduciary Excellence for its Separately Managed and Portfolio Management Account platforms. For the seventh year in a row, Richardson Wealth has been certified as a "great place to work" by Great Place to Work®, a global authority on workplace culture.
To learn more about the Company, please visit www.rfcapgroup.com and www.RichardsonWealth.com to view our 2024 annual report and our latest recruiting brochure.
SOURCE RF Capital Group Inc.
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Issued on behalf of Oncolytics Biotech Inc. VANCOUVER, BC, Aug. 14, 2025 /CNW/ -- Equity Insider News Commentary – Despite alarming federal budget cuts that stand to potentially harm the national battle against cancer, it appears that the private sector continues to step up, with hundreds of millions of VC dollars pouring into oncology ventures so far in 2025. While there has been a recent victory in the Senate to restore $15 million for the Pancreatic Cancer Research Program (PCARP), the prior elimination of the only federal program dedicated solely to researching pancreatic cancer served as a stark reminder of these ongoing funding challenges. This dynamic is setting the stage for a "flight to quality" among investors, who are now more than ever looking for innovative leaders with strong pipelines and clear paths to regulatory execution, a key milestone that can separate a promising biotech from a potential breakthrough like Oncolytics Biotech Inc. (NASDAQ: ONCY) (TSX: ONC), ProPhase Labs, Inc. (NASDAQ: PRPH), IO Biotech, Inc. (NASDAQ: IOBT), Olema Pharmaceuticals, Inc. (NASDAQ: OLMA), and PDS Biotechnology Corporation (NASDAQ: PDSB). According to a report from Global Market Insights, the global oncology market was estimated at US$345.1 billion in 2025, and while growing at an impressive 10.8% CAGR, is projected to reach US$866.1 billion by 2034 — with $377.1 billion of that coming from the USA alone. Even more optimistic is a report from Vision Research Reports, which sees the global cancer drug sector surpassing US$900 billion in sales by 2034. Oncolytics Biotech Inc. (NASDAQ: ONCY) (TSX: ONC) has officially entered the most critical phase of its development journey—pursuing a potential registration-enabling trial in first-line metastatic pancreatic ductal adenocarcinoma (mPDAC) for its flagship asset, pelareorep. In its latest Q2 2025 report, the company confirmed it has begun formal discussions with the U.S. Food and Drug Administration (FDA) aimed at finalizing a pivotal study design, with trial start-up activities expected to begin as early as Q4 2025. For investors and potential partners, this represents a clear transition from promising clinical data to potential regulatory approval in one of medicine's most challenging cancer types. "We have turned the corner from proof-of-concept studies and will be sprinting toward regulatory clarity for the remainder of the year," said Jared Kelly, CEO of Oncolytics. "As we shore up our intellectual property, get a clear registration path for pelareorep, and allow our GOBLET data to mature, we will establish our position as the only platform immunotherapy in gastrointestinal tumors." The strategic focus on mPDAC reflects both compelling clinical results and a significant market opportunity. Pelareorep is a systemically delivered oncolytic virus designed to convert immunologically "cold" tumors—those typically invisible to the immune system—into "hot" tumors that can respond to immunotherapy. In first-line pancreatic cancer studies, pelareorep-based regimens have demonstrated a notable 21.9% two-year overall survival rate, compared to a 9.2% historical benchmark for standard chemotherapy alone. Even more compelling, when pelareorep was combined with chemotherapy and a checkpoint inhibitor, researchers recorded a 62% objective response rate—particularly significant given that checkpoint inhibitors are not currently approved for use in this indication. These results stem from pelareorep's dual mechanism: it both replicates within cancer cells and activates the body's immune response against tumors. "This robust data set, amassed from several studies in cancers that have historically resisted immunotherapeutic approaches, provides definitive validation of pelareorep's immune-mediated mechanism of action," said Dr. Thomas Heineman, Chief Medical Officer of Oncolytics. "We observed tumor biopsy-confirmed virus replication, immune cell activation, and the recruitment of cytotoxic T cells into the TME—all consistent with the durable responses observed in patients with metastatic PDAC and HR+/HER2- breast cancer who were treated with pelareorep." Translational data from the GOBLET and AWARE-1 studies demonstrate how pelareorep transforms the tumor microenvironment, increasing PD-L1 expression, heightening interferon signaling, and mobilizing tumor-infiltrating lymphocytes in the blood—changes that correlate with tumor size reduction. This mechanistic validation, combined with survival data from over 1,100 patients across multiple studies, has solidified the company's decision to prioritize this indication. Oncolytics' execution-focused strategy is being led by Jared Kelly and Andrew Aromando, who both played key roles in Ambrx Biopharma's US$2 billion acquisition by Johnson & Johnson. Kelly was appointed CEO earlier this year, while Aromando recently joined as Chief Business Officer. In line with their focus on capital efficiency, the company has terminated its At-the-Market and Equity Line of Credit facilities, citing sufficient resources to advance key milestones without near-term shareholder dilution. Regulatory advantages are already in place to accelerate development. Pelareorep holds Fast Track and Orphan Drug designations for pancreatic cancer from the FDA, meaning the agency has already recognized both the drug's potential and the serious unmet need in this patient population. These statuses streamline review processes and enhance the program's attractiveness to potential pharmaceutical partners. The context underscores the opportunity: pancreatic cancer remains one of the deadliest common cancers, with a five-year survival rate of less than 14%. Unlike other cancers where immunotherapies have transformed treatment, mPDAC has largely resisted immunotherapeutic approaches—making pelareorep's immune-activating mechanism particularly promising for this underserved patient population. Back in July, Oncolytics hosted a key opinion leader event featuring gastrointestinal cancer experts who reviewed survival outcomes for patients and biomarker validation. The expert panel reinforced the view that pelareorep's mechanism of activating innate and adaptive immune responses is both biologically sound and commercially relevant for first-line mPDAC treatment. With this latest milestone, Oncolytics is entering a phase where FDA feedback will shape both clinical plans and potential commercial partnerships. If the agency accepts the company's proposed trial framework centered on an overall survival endpoint, the resulting study could provide definitive proof of pelareorep's market potential in mPDAC. The company expects to provide an updated clinical timeline in Q3 2025, with trial start-up activities potentially beginning as early as Q4 2025. With compelling survival data, regulatory designations in place, and an experienced leadership team driving execution, Oncolytics is positioning pelareorep for a pivotal test in one of oncology's most challenging and underserved markets. In other recent industry developments and happenings in the market include: ProPhase Labs, Inc. (NASDAQ: PRPH) announced it received a U.S. patent for its BE-Smart test that can detect early signs of Barrett's esophageal cancer, a deadly disease that kills most patients because it's usually caught too late. The test works with simple brush and forceps biopsies and achieved over 95% accuracy in clinical testing, potentially allowing doctors to catch this cancer when it's still treatable. "This achievement, coming on the heels of our BE-Smart ™ validation demonstrating greater than a 95% technical success rate and dual compatibility with both brush and forceps biopsies, solidifies our leadership in medical innovation and brings us one step closer to transforming early detection and treatment strategies for this serious condition," said Ted Karkus, CEP of ProPhase. "With this newly issued patent, we believe we are well positioned to accelerate commercialization and broaden clinical access to BE-Smart." ProPhase's breakthrough could save thousands of lives by identifying patients at high risk for esophageal cancer before the disease becomes incurable, representing a major advancement in early cancer detection. IO Biotech, Inc. (NASDAQ: IOBT) recently announced that its experimental cancer vaccine (Cylembio) meaningfully extended the time before advanced melanoma patients got worse, with patients living 19.4 months without disease progression compared to 11 months for those on standard treatment alone. The vaccine works by training the immune system to attack both cancer cells and the cells that help tumors hide from treatment, and it showed particularly strong results in patients whose tumors were PD-L1 negative and unlikely to respond to current immunotherapies. "In this study, we observed a highly encouraging improvement in progression free survival and consistent trend in overall survival in patients treated with Cylembio," said Mai-Britt Zocca, PhD, President and CEO of IO Biotech. "The magnitude and durability of clinical effect observed consistently across subgroups supports our confidence in Cylembio and its potential as a treatment for advanced melanoma patients. We look forward to engaging with the FDA to determine a potential path to approval based on these data." IO Biotech plans to meet with the FDA this fall to discuss approval for this treatment that could become a new standard of care for the deadliest form of skin cancer. Olema Pharmaceuticals, Inc. (NASDAQ: OLMA) reported progress on its experimental breast cancer pill called palazestrant, which is designed to completely block estrogen signals that fuel most breast cancers and is currently being tested in two large Phase 3 trials expected to finish in 2026. "Having achieved regulatory alignment on the selected dose for our pivotal palazestrant program during the second quarter, we are focused on accelerating enrollment in OPERA-01, which is on track for top-line data in the second half of 2026," said Sean P. Bohen, M.D., Ph.D., President and CEO of Olema. "Palazestrant's demonstrated activity and combinability with multiple compounds offers the potential for it to become a best-in-class, backbone endocrine therapy for metastatic breast cancer." The company is also developing OP-3136, a pill that targets a different pathway cancer cells use to grow and spread, with early results expected in 2026. Olema's drugs are designed to work where current treatments fail, potentially offering hope to the thousands of breast cancer patients whose tumors eventually become resistant to existing therapies. PDS Biotechnology Corporation (NASDAQ: PDSB) reported promising results from a colorectal cancer study where its experimental treatment achieved impressive response rates, leading to expansion of the trial to treat more patients with this hard-to-treat cancer. "Our second quarter of 2025 and recent weeks have been a productive period for PDS Biotech, highlighted by the continued progress in our VERSATILE-003 Phase 3 clinical trial," said Frank Bedu-Addo, Ph.D., President and CEO of PDS Biotech. "We look forward to publishing the full data set for this trial later this year, as we continue to progress our VERSATILE-003 trial, the only registrational stage trial specifically targeting HPV16-positive HNSCC patients." The company's lead program targets head and neck cancers caused by HPV, the same virus that is a major cause of cervical cancer, and is currently being tested in the only late-stage trial specifically designed for these patients. PDS Biotech's approach uses its immune-boosting technology to help the body's natural defenses better recognize and destroy cancer cells, potentially offering new hope for patients with limited treatment options. DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). 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