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OncoMed Announces Workforce Reduction

REDWOOD CITY, Calif., April 24, 2017 (GLOBE NEWSWIRE) -- 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.

About OncoMed Pharmaceuticals
OncoMed Pharmaceuticals is a clinical-stage biopharmaceutical company focused on discovering and developing novel anti-cancer therapeutics. OncoMed has internally discovered a broad pipeline of investigational drugs intended to address the fundamental biology driving cancer’s growth, resistance, recurrence and metastasis. Demcizumab (anti-DLL4, OMP-21M18), navicixizumab (anti-DLL4/VEGF bispecific, OMP-305B83), rosmantuzumab (anti-RSPO3, OMP-131R10) and anti-TIGIT (OMP-313M32) are part of the company’s strategic alliances with Celgene Corporation. OncoMed is independently developing vantictumab (anti-Fzd, OMP-18R5), ipafricept (Fzd8-Fc, OMP-54F28) and GITRL-Fc (OMP-336B11), as well as continuing to pursue new drug discovery research. For further information about OncoMed Pharmaceuticals, please see www.oncomed.com.

Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding OncoMed Pharmaceuticals, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, OncoMed's intentions and expectations regarding the period of time during which cash will be available to fund OncoMed's operations; OncoMed's operating cash burn for 2017; the opportunities for partnering OncoMed’s unpartnered assets, and OncoMed’s ability to obtain maximal value from those opportunities; OncoMed’s ability to advance its rosmantuzumab, navicixizumab and anti-TIGIT clinical programs to milestones; the focus of OncoMed’s operations; OncoMed's ability to discover and develop new treatments for patients with cancer; the filing of an Investigational New Drug (IND) application for GITRL-Fc in the first half of 2017; OncoMed's ability to receive opt-in payments or other milestones from Celgene; the cost savings afforded by implementation of the workforce reduction; and OncoMed’s estimate of severance-related charges, and the timing of those charges. Such forward-looking statements involve substantial risks and uncertainties that could cause OncoMed's clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the preclinical and clinical development process; OncoMed's dependence on its collaboration partner Celgene for the funding of its partnered programs; OncoMed's ability to raise additional capital to support the development of its unpartnered programs; OncoMed's reliance on third parties to conduct certain preclinical studies and all of its clinical trials; OncoMed's reliance on single source third-party contract manufacturing organizations to manufacture and supply its product candidates; OncoMed's ability to discover, develop and commercialize additional product candidates; and OncoMed's dependence on its key executives. OncoMed undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to OncoMed's business in general, see OncoMed's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on March 9, 2017 and OncoMed's other current and periodic reports filed with the SEC.

Contact: Michelle Corral Senior Director, Investor Relations and Corporate Communications OncoMed Pharmaceuticals michelle.corral@oncomed.com (650) 995-8373

Source:OncoMed Pharmaceuticals, Inc.