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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of March 2006

Commission File Number 000-31062

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   o

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   82 -             

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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FOR IMMEDIATE RELEASE

Oncolytics Biotech Inc. Announces Issuance of 15th U.S. Patent

CALGARY, AB — March 27, 2006 — Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (“Oncolytics”) has been granted U.S. Patent 7,014,847 entitled “Methods for Preventing Reovirus Recognition for the Treatment of Cellular Proliferative Disorders.” The claims describe methods for preventing reovirus recognition by the host immune system, while concurrently or subsequently administering reovirus, resulting in substantial lysis of the proliferating cells.

“The claims in this U.S. patent allow manipulation of the immune system that may enhance the effectiveness of REOLYSIN^® treatment,” said Dr. Matt Coffey, Chief Scientific Officer of Oncolytics. “The use of immune modulation with this class of biologic agent is a growing and promising field of research and we are pleased to have secured patent protection for this new treatment modality.”

About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the development of oncolytic viruses as potential cancer therapeutics. Oncolytics’ clinical program includes a variety of Phase I and Phase I/II human trials using REOLYSIN^®, its proprietary formulation of the human reovirus, alone and in combination with radiation. For further information about Oncolytics please visit www.oncolyticsbiotech.com

This news release contains forward looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements, including among others, the Company’s belief as to the importance of the issuance of this patent, the safety and efficacy of the reovirus, the Company’s expectations as to the potential applications of the patented technology and other statements relating to anticipated developments in the Company’s business and technologies, involve known and unknown risks and uncertainties that could cause the Company’s actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, among others, the efficacy of REOLYSIN^® as a cancer treatment, the success and timely completion of clinical studies and trials, uncertainties related to the research and development of pharmaceuticals and uncertainties related to the regulatory process. Investors should consult the Company’s quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to the forward looking statements. Investors are cautioned against placing undue reliance on forward looking statements. The Company does not undertake to update these forward looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Oncolytics Biotech Inc.		The Equicom Group
Cathy Ward		Nick Hurst
210, 1167 Kensington Cr NW		20 Toronto Street
Calgary, Alberta T2N 1X7		Toronto, Ontario M5C 2B8
Tel: 403.670.7377		Tel: 416.815.0700 ext.226
Fax: 403.283.0858		Fax: 416.815.0080
cathy.ward@oncolytics.ca		nhurst@equicomgroup.com
www.oncolyticsbiotech.com
The Investor Relations Group		RenMark Financial Communications
Damian McIntosh		John Boidman
11 Stone St, 3rd Floor		2080 Rene Levesque Blvd. W.
New York, NY 10004		Montreal, PQ H3H 1R6
Tel: 212.825.3210		Tel: 514.939.3989
Fax: 212.825.3229		Fax: 514.939.3717
dmcintosh@investorrelationsgroup.com		jboidman@renmarkfinancial.com

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