Viralytics is off to an auspicious start this year, its stock rallying close to 15 per cent. Investors hope sentiment towards the company has turned after management recruited 54 tumour patients for phase 2 trials in the US for its lead drug candidate, Cavatak. This is the first Cavatak trial that is allowed and reviewed by the US Food & Drug Administration. Viralytics is also undertaking phase 1 trials for the drug in Australia to treat other cancers. But commercialising the drug is still years away and the market appetite for earlier-stage biotechs is weak, given the global turmoil afflicting equities. Despite the recent gain, the stock is still a long way off its 16-month high of $1.10, which it hit at the end of May last year. The company reported a $2.7 million loss in the last financial year but its cash balance in the December quarter was $8 million, $3 million higher than the previous three months due mainly to a capital raising and a tax refund. Brendon Lau