Drug Development

OncoMed’s bad, no good, disastrous month continues as another PhII flops, PhIb trial is shuttered

OncoMed CEO Paul J. Hastings

A few days ago, shares of OncoMed $OMED were blitzed by the news that its top drug demcizumab had flopped in a Phase II study, following it up with the news that Bayer bypassed a tie-up on two other key programs. This morning the biotech added that its drug tarextumab plus chemo also failed a Phase II study. And investigators decided to drop a Phase Ib trial of brontictuzumab after they determined that the drug regimen was not tolerated by patients.

All of this happened just a year after its then number-two drug foundered in Phase II as well.

Tarextumab was being tested in a study involving 145 patients with extensive small cell lung cancer. But the PINNACLE study provided no evidence the drug significantly improved either overall survival or progression-free survival when compared to the chemo-plus-placebo arm.

Brontictuzumab was being studied in combination with trifluridine/tipiracil (Lonsurf) in third-line colorectal cancer patients.

Now the biotech has to determine what kind of future, if any, it has left. The company started this morning with its stock pegged at $4.84 before the open, down 67% from its 12-month high year. Shares immediately dropped 30% on the news.

“Based on the events of today and last week, we will be undertaking a comprehensive portfolio prioritization review immediately,” said CEO Paul Hastings.  “The immediate task ahead is to thoroughly examine the available data, our resources and the opportunities to re-focus our efforts. We ended the first quarter of 2017 with $156.9 million in cash and short-term investments.”


Get Endpoints News in your inbox

News reports for those who discover, develop, and market drugs. Join 16,000+ biopharma pros who read Endpoints News articles by email every day. Free subscription.

Quick Subscribe

You're subscribing to Endpoints News

John Carroll, Editor and Co-Founder

We produce two daily newsletters designed to give you a complete picture of what's important in biopharma.

Early Edition is a skimmable digest of original sources you need to see by ~7:15a ET, and our Main Edition is the daily chronicle of biotech, with every story inside the email ~11:55a ET.
2x/weekdays. Privacy policy




EvaluatePharma World Preview 2017