OncoMed Pharma To Reduce Its Workforce By About 50%

(RTTNews) - OncoMed Pharmaceuticals Inc. (OMED) announced 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 said it 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 third-quarter of 2019, excluding any revenue generated from existing partnerships or potential new partnering arrangements.

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.