OncoMed Pharma (OMED) to Reduce Workforce by 50%

OncoMed Pharmaceuticals Inc. (NASDAQ: OMED), a clinical-stage biopharmaceutical company focused on discovering and developing novel anti-cancer therapeutics, announced today a significant reduction in its workforce to focus internal efforts on the advancement of three clinical-stage programs 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 the plan announced today, 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.

“We have an incredible team at OncoMed and it is a privilege to work with such an intensely passionate, dedicated and talented group committed to discovering and developing new treatments for patients with cancer. I am deeply grateful for all the contributions that employees have made to advancing our novel anti-cancer therapeutics and we will do our best to support those affected by these changes through this difficult, but necessary, transition,” said Paul J. Hastings, OncoMed’s Chairman and CEO.

Mr. Hastings continued, “With this restructuring, we expect to have greater than two years cash to support operations focused on driving our rosmantuzumab, navicixizumab and anti-TIGIT clinical-stage programs to $98 million in potential development milestone payments while advancing our immuno-oncology discovery-stage portfolio. We plan to also explore partnering opportunities for our Wnt pathway and immuno-oncology agents to which we have worldwide rights.”

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 Corporation 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 U.S. Food and Drug Administration (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.

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