Company Completes $94 Million IPO in July
Vantictumab Dose Escalation Progress Triggers $10 Million Milestone in August
REDWOOD CITY, Calif., Sept. 3, 2013 (GLOBE NEWSWIRE) -- OncoMed Pharmaceuticals, Inc. (Nasdaq:OMED), a clinical-stage company developing novel therapeutics that target cancer stem cells (CSCs), or tumor-initiating cells, today reported financial results for the second quarter of 2013. The results are the first operating results the company is reporting as a public company.
On July 23, 2013, the company successfully closed the initial public offering (IPO) of its common stock, raising proceeds, net of underwriter discounts and commissions but prior to the payment of remaining offering expenses payable by the company, of $87.3 million dollars, which included the sale of shares to the underwriters upon the full exercise of their option to purchase additional shares of common stock. Pro forma cash as of July 31, 2013 was $140 million. The company also announced today that it had earned in August a $10 million clinical milestone related to the Phase 1 dose escalation in its vantictumab program, which is part of its collaboration with Bayer Pharma AG.
According to OncoMed's Chairman, President and Chief Executive Officer, Paul J. Hastings, "The successful completion of our IPO positions us to advance our broad research and development pipeline. We continue to see progress in our robust discovery and preclinical pipeline as well as with our five OncoMed-discovered anti-cancer stem cell therapeutics that are in clinical trials."
Second Quarter and Recent Corporate Highlights:
- Initiated in July 2013 new Abraxane/Demcizumab/Gemcitabine cohorts of Phase 1b testing in patients with pancreatic cancer
- Initiated in May 2013 enrollment of the anti-Notch2/3 Phase 1b/2 PINNACLE trial in small cell lung cancer, which triggered an $8 million advance payment from GlaxoSmithKline (GSK)
- Presented in June 2013 first-in-human clinical data from vantictumab at the ASCO 2013 Annual Meeting
- Made in April 2013 five poster presentations and one plenary oral presentation at the AACR Annual Meeting 2013 with data from five OncoMed anti-CSC programs
- Completed in July 2013 successful initial public offering raising $94 million in gross proceeds
- Received in May 2013 issued U.S. patent covering both anti-Notch1 composition of matter and methods of treating cancer with anti-Notch1
- Received in August 2013 issued U.S. patent covering methods of treating cancer with vantictumab
- Achieved in August 2013 a $10 million milestone related to the Phase 1 dose escalation of vantictumab through its collaboration with Bayer
Second Quarter 2013 Financial Results and Initial Public Offering
OncoMed ended the second quarter with a cash balance of $56.5 million. Subsequently in July, the company closed an initial public offering of its common stock selling an aggregate of 5,520,000 shares of common stock at a public offering price of $17.00 per share, including 720,000 shares pursuant to the exercise by the underwriters of an option to purchase additional shares of common stock. Net proceeds were approximately $87.3 million, after deducting underwriting discounts and commissions but prior to the payment of remaining offering expenses payable by OncoMed. The pro forma cash following the offering at July 31, 2013 was $140 million.
Collaboration revenues for the second quarter of 2013 were $2.9 million, compared to $7.5 million for the second quarter of 2012, a decrease of $4.6 million. This decrease was mainly a result of timing of a $5.0 million milestone payment that was achieved in the second quarter of 2012, offset by $0.4 million in collaboration revenue recognized in the second quarter of 2013 related to the amortization of a payment from Bayer received in August 2012.
Research and development expenses for the second quarter of 2013 were $10.5 million, compared to $9.6 million for the second quarter of 2012, an increase of $0.9 million. This increase was attributable to an increase in external program costs.
General and administrative expenses for the second quarter of 2013 were $2.0 million, compared to $1.7 million for the second quarter of 2012, an increase of $0.3 million. This increase was primarily attributable to higher legal fees and employee related costs, partially offset by lower consulting fees from third-party vendors.
OncoMed reported a net loss of $9.6 million for the second quarter of 2013, compared to $3.8 million for the second quarter of 2012. Net loss per share available to common stockholders for the second quarter of 2013 was $8.83 per share, compared to $3.64 per share for the second quarter of 2012. This increased net loss was mainly due to the timing of a $5.0 million milestone payment that was achieved in the second quarter of 2012.
About OncoMed Pharmaceuticals
OncoMed Pharmaceuticals is a clinical-stage company focused on discovering and developing novel therapeutics targeting cancer stem cells. OncoMed has five anti-cancer product candidates in clinical development, including demcizumab (Anti-DLL4, OMP-21M18), OMP-59R5 (Anti-Notch2/3), OMP-52M51 (Anti-Notch1), vantictumab (Anti-Fzd7, OMP-18R5), and OMP-54F28 (Fzd8-Fc), which target key cancer stem cell signaling pathways including Notch and Wnt. OncoMed has two other antibodies in preclinical development with Investigational New Drug filings planned for as early as 2014. OncoMed is also pursuing discovery of additional novel anti-CSC product candidates. OncoMed has formed strategic alliances with Bayer Pharma AG and GlaxoSmithKline (GSK). Additional information can be found at the company's website: www.oncomed.com.
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 OncoMed's expectations regarding the ability of OncoMed to advance its research and development pipeline, including its discovery and preclinical pipeline and its anti-CSC therapeutics in clinical trials; the scope, validity, and enforceability of patent protection afforded by OncoMed's intellectual property; OncoMed's ability to discover and develop novel anti-CSC therapeutics; and the timing of Investigational New Drug filings and clinical trials. 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; the risks and uncertainties of the regulatory approval process; OncoMed's dependence on its collaboration partners, including GSK and Bayer, for the funding of its partnered programs; OncoMed's ability to raise additional capital to support the development of its unpartnered programs; OncoMed's dependence on the development and marketing efforts of its partners for the commercial success of its partnered product candidates; 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 validate, develop and obtain regulatory approval for companion diagnostics; OncoMed's ability to achieve market acceptance and commercial success of its product candidates once regulatory approval is achieved; OncoMed's ability to discover, develop and commercialize additional product candidates; the ability of competitors to discover, develop or commercialize competing products more quickly or more successfully; OncoMed's dependence on its President and Chief Executive Officer, its Chief Scientific Officer, its Chief Medical Officer and other key executives; risk of third party claims alleging infringement of patents and proprietary rights or seeking to invalidate OncoMed's patents or proprietary rights; and the ability of OncoMed's proprietary rights to protect its technologies and product candidates. 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 Prospectus filed with the Securities and Exchange Commission on July 18, 2013 and OncoMed's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013, filed with the Securities and Exchange Commission on September 3, 2013.
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Source:OncoMed Pharmaceuticals, Inc.