By: Tomas Ronolski - AllPennyStocks.com News

Thursday, March 12, 2015

The biotechnology sector has been off to a solid start in 2015, with the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) gaining nearly 12.50% year-to-date. Investors’ interest in the biotechnology sector remains high. One of the areas within the biotechnology sector that has generated the most interest is cancer therapy as there is still significant unmet medical need in this area. A number of biotechnology companies, as well as large pharmas are conducting research in the field of cancer therapy at this time. Immunotherapy has emerged as a promising therapy for the dreaded disease. The National Cancer Institute (NCI) describes immunotherapies as “treatments that restore or enhance the immune system’s ability to fight cancer.” The NCI further states that in recent years they have seen the emergence of a number of new methods of treating cancer that boost the strength of immune responses against tumors.

In 2013, the journal Science designated “immunotherapy of cancer” as its Breakthrough of the Year, according to the NCI.

An emerging player in the field of immunotherapy is OncoSec Medical Inc. (OTCQB:ONCS). Based in San Diego, California, ONCS is engaged in the design, development and commercialization of proprietary medical approaches, mainly immunotherapy, to treat advanced-stage skin cancer.

Earlier today, ONCS reported its financial results for the six-month period ended January 31, 2015. While the company is still in development stage, the financial results are still important as they provide an update on cash position and how much is being spent on research and development.

In the six-month period, ONCS spent $5.4 million on research and development, up from $2.2 million reported for the same period in the previous year. The increase in research and development expenses was mainly due to increases in salary related expenses, higher outside service costs and an increase in lab supplies. This was primarily due to the fact that the company is expanding its internal research capabilities.

ONCS reported a net loss of $8.7 million, or $0.04 per share for the six-month period, compared to $4.7 million, or $0.03 per share reported for the same period in the previous year. The company did not generate any revenue in the six-month period.

The most important number though is ONCS’s cash position. At the end of January 31, 2015, the company had $30.7 million in cash and cash equivalents. Based on the company’s current expenses, the cash should be sufficient to fund operations until the end of this year.

OncoSec is focusing on an area within cancer therapy that has seen significant interest and has tremendous potential. The company is increasing its research capabilities, which means that at some point late in the year it will have to raise more cash. Therefore, there is likely to be dilution for existing shareholders sometime later this year. However, the upside could be significant if the company’s immunotherapy shows any kind of promise.

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