OncoMed Cuts Workforce in Half

OncoMed Pharmaceuticals, a biopharma company developing anti-cancer therapeutics, will cut its workforce by approximately 50% in an effort to focus on advancing three clinical-stage programs and continue immuno-oncology drug discovery and development. The company is seeking to partner select pipeline assets. 

The workforce reduction will result in 64 remaining full-time employees. OncoMed expects to realize cost savings of approximately $60 million over the next two years and anticipates having sufficient cash to fund operations through 3Q19, excluding any revenue generated from existing partnerships or potential new partnering arrangements. 

"We have an incredible team at OncoMed and it is a privilege to work with such an intensely passionate, dedicated and talented group committed to discovering and developing new treatments for patients with cancer.  I am deeply grateful for all the contributions that employees have made to advancing our novel anti-cancer therapeutics and we will do our best to support those affected by these changes through this difficult, but necessary, transition," said Paul J. Hastings, OncoMed’s chairman and chief executive officer. 

Mr. Hastings continued, "With this restructuring, we expect to support operations focused on driving our rosmantuzumab, navicixizumab and anti-TIGIT clinical-stage programs to $98 million in potential development milestone payments while advancing our immuno-oncology discovery-stage portfolio.  We plan to also explore partnering opportunities for our Wnt pathway and immuno-oncology agents to which we have worldwide rights."

OncoMed is also interested in partnering its assets, such as vantictumab, ipafricept, GITRL-Fc trimer and undisclosed immuno-oncology discoveries.