GSK, OncoMed Form Cancer Collaboration

GlaxoSmithKline and OncoMed Pharmaceuticals have formed a strategic alliance to discover, develop and market novel antibody therapeutics to target cancer stem cells. These cells are believed to play a key role in the establishment, metastasis and recurrence of cancer. The alliance will be conducted through GSK’s Center of Excellence for External Drug Discovery (CEEDD).

The alliance leverages OncoMed’s expertise in the discovery and development of cancer stem cell antibody therapeutics and provides GSK with an option to license four product candidates directed at multiple cancer stem cell targets from OncoMed’s broad library of monoclonal antibodies. OncoMed will receive an undisclosed initial payment that includes cash and an equity investment. In addition, OncoMed is eligible to earn milestone payments of as much as $1.4 billion from GSK based on the achievement of specified discovery, development, regulatory and commercial milestones. OncoMed will also receive double-digit royalties on all collaboration product sales. GSK will have an option to invest in a future initial public offering by OncoMed.

OncoMed has established a diverse pipeline of monoclonal antibodies to target multiple pathways important in the activity of cancer stem cells. The alliance with GSK includes OncoMed’s lead antibody product candidate, OMP-21M18, a monoclonal antibody, which is scheduled to enter the clinic in 2008.

In the alliance, OncoMed will utilize its proprietary in vivo xenograft cancer stem cell models to identify MAbs in a specific, undisclosed cancer stem cell pathway. OncoMed will develop the most promising of these monoclonal antibodies, including OMP-21M18, through clinical proof of concept across multiple indications. Upon achievement of clinical proof of concept in an agreed indication, GSK will have an exclusive option to license that MAb. GSK would then assume responsibility for funding of further clinical development and commercialisation on a worldwide basis. OncoMed retains the option to participate in development and commercialization of OMP-21M18 on pre-agreed terms.