Date: 2017-04-24
Type of information: Restructuring
Compound:
Company: OncoMed Pharmaceuticals (USA - CA)
Therapeutic area: Cancer - Oncology
Type agreement: restructuring
Action mechanism:
Disease:
Details:
- • On April 24, 2017, OncoMed Pharmaceuticals, a clinical-stage biopharmaceutical company focused on discovering and developing novel anti-cancer therapeutics, announced a significant reduction in its workforce to focus internal efforts on the advancement of three clinical-stage programs (rosmantuzumab, navicixizumab and anti-TIGIT) to key milestones and continued immuno-oncology drug discovery and development, while seeking to partner select pipeline assets.
OncoMed will reduce its workforce by approximately 50 percent, resulting in 64 remaining full-time employees. Through implementation of this plan announced , OncoMed expects to realize significant cost savings of approximately $60 million over the next two years associated with personnel and operating expenses. The company anticipates having sufficient cash to fund operations through Q3 2019, excluding any revenue generated from existing partnerships or potential new partnering arrangements.
As a result of its reprioritization efforts, OncoMed has aligned internal resources to deliver on potential drug discovery and development milestones, including:
- enroll patients in the rosmantuzumab (anti-RSPO3, OMP-131R10) Phase 1a/1b trial, the two Phase 1b clinical trials of navicixizumab (anti-DLL4/VEGF bispecific, OMP-305B83) and the Phase 1a trial of anti-TIGIT (OMP-313M32).
- All three of these antibodies are part of OncoMed's collaboration with Celgene and may be eligible for up to $98 million in potential milestones in the next two years.
File an Investigational New Drug (IND) application with the FDA for its unique wholly owned GITRL-Fc trimer (OMP-336B11) in the first half of the year.
- pursue continued discovery and development of novel immuno-oncology therapeutics.
OncoMed will also seek to maximize the value from potential interest in partnering the assets to which it has worldwide rights, such as vantictumab, ipafricept, GITRL-Fc trimer and undisclosed immuno-oncology discoveries.
OncoMed estimates the one-time severance-related charges of $2.6 million related to termination benefits and other related expenses. The majority of the charges will be paid by the end of the second quarter of 2017. As a result of these changes, the company also adjusted guidance for its anticipated 2017 expenses to approximately $90 million, as compared to prior estimates of approximately $100 million.
Financial terms:
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Is general: Yes
