Up to $344. 5M GSK Collaboration

Tarextumab is being developed through a collaboration launched in 3 years ago with GSK that gives the pharma giant an option to get an exclusive license to the candidate during certain time periods by means of completion of proof-of-concept Phase II trials.

OncoMed has been eligible for up to $344. 5 million in landmark and contingent payments related to tarextumab, including a $25 million opt-in payment and research, development, regulatory, plus commercialization payments, in addition to royalties in the low double numbers to high teens on net product sales.

As of December 31, 2016, OncoMed earned $25 mil in milestone payments from GSK related to tarextumab, based on OncoMed’ s Form 10-K Annual report for 2016.

OncoMed would regain rights to tarextumab if GSK elects not to exercise its options, or even if it terminates the program. “ We expect to submit the data package designed to inform GSK’ s option choice regarding tarextumab in the first half of 2017, ” OncoMed stated in the Form 10-K.

The GSK collaboration was originally announced in 2007 as a four-candidate, up to $1. 4 billion partnership, but was narrowed this year to two compounds, tarextumab and brontictuzumab. On Oct 31, 2016, GSK told OncoMed it was terminating the option for an exclusive license to develop and commercialize brontictuzumab efficient January 29, returning its rights to OncoMed.

OncoMed also said today it was halting registration of patients in a Phase Ib clinical trial evaluating brontictuzumab in combination with trifluridine/tipiracil (Lonsurf ® ) in third-line colorectal cancer patients.

“ The combination of brontictuzumab plus chemotherapy was not tolerable within this patient population, ” OncoMed stated, without offering information.

Brontictuzumab, also called OMP-52M51, is a novel anticancer stem cell antibody designed to work by binding the particular Notch1 receptor. Blocking Notch1 has been shown in preclinical versions to inhibit cancer stem cell growth and market cell differentiation, as well as to disrupt tumor angiogenesis, according to OncoMed.

Notch1 signaling is prevalent in several strong tumor types, including certain breast, esophageal, colorectal, gastric, pancreatic, and small-cell lung cancers, as well as adenoid cystic carcinoma and cholangiocarcinoma.

“ The instant task ahead is to thoroughly examine the available information, our resources, and the opportunities to refocus our efforts, ” Hastings added. “ We ended the first quarter associated with 2017 with $156. 9 million in cash plus short-term investments. ”