Celgene signs $177 million OncoMed deal
pharmafile | December 4, 2013 | News story | Research and Development, Sales and Marketing | Cancer, Celgene, OncoMed, stem cell
Celgene Corporation is paying OncoMed Pharmaceuticals $177.25 million to get access to its pipeline as part of a deal to develop and commercialise six anti-cancer stem cell (CSC) therapies.
That money includes a sizeable $22.25 million equity investment in OncoMed by Celgene, and rights and costs will be shared in various ways across the portfolio.
The agreement includes OncoMed’s demcizumab (OMP-21M18, Anti-DLL4), which is one of the company’s most advanced candidates: Celgene can take up an exclusive option on it either during or after OncoMed completes a Phase II programme.
Demcizumab is currently in three Phase Ib studies in combination with standard-of-care therapies, including one in patients with first-line advanced pancreatic cancer, and OncoMed could make as much as $790 million from it.
Tom Daniel, Celgene’s president, global R&D, says: “Demcizumab’s substantial early clinical activity warrants aggressive yet careful evaluation in several indications where we have strength, including non-small cell lung cancer and pancreatic cancer”.
If Celgene exercises its right, both companies will co-develop demcizumab with Celgene taking two thirds of global development costs and OncoMed one third, and both splitting profits in the US 50-50.
Outside the US, Celgene will lead operations, giving OncoMed milestone payments and tiered double-digit royalties.
The other pre-clinical or discovery-stage biologics programmes will be OncoMed’s anti-DLL4/VEGF bispecific antibody, and up to four more targeting either the RSPO-LGR CSC pathway or an undisclosed CSC pathway.
Celgene will have the options on these during or after OncoMed has finished Phase I trials – and they could each be worth $440 million to OncoMed.
For the anti-DLL4/VEGF candidate and three of the additional ones, the profits and development costs will be split 50/50 in the US – outside the US, OncoMed will have one third of the costs and royalties (possibly up to $505 million), with Celgene taking two thirds.
On the fourth programme, Celgene would get an exclusive worldwide licence, with OncoMed receiving high-single digit to mid-double digit royalties on sales.
Celgene will also have an option to conduct small molecule research, development and commercialisation in the undisclosed CSC pathway, with OncoMed eligible for more than $100 million in milestones and royalties on any resulting small molecule anti-cancer product candidates.
OncoMed chief executive Paul Hastings believes the collaboration gives it access to “substantial resources that will enable us to continue to discover and develop new therapeutics independently”.
Daniel says the deal “holds great promise for cancer patients”.
Adam Hill
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