OncoMed Pharmaceuticals, Inc. (NASDAQ:OMED), a clinical-stage
biopharmaceutical company focused on discovering and developing
novel anti-cancer therapeutics, today announced fourth quarter and
full year 2018 financial results.
Recent Corporate News On December 5, 2018,
OncoMed and Mereo BioPharma Group plc (Mereo), a clinical-stage
UK-based biopharmaceutical company, agreed to enter into a proposed
combination of the two companies, subject to approval by OncoMed
shareholders and other customary closing conditions. A preliminary
registration statement on Form F-4 was filed with the Securities
and Exchange Commission (SEC) by Mereo and is available on
OncoMed’s website. The merger is expected to close in the second
quarter of 2019.
Fourth Quarter and Full Year 2018 Financial
Results
Cash, cash equivalents and short-term
investments totaled $57.3 million as of December 31, 2018,
compared to $103.1 million as of December 31, 2017.
Revenues were $44.4 million for the full
year of 2018, an increase of $6.2 million, compared to $38.2
million for the same period in 2017. The increase in revenue was a
result of the new revenue recognition standard adopted in the first
quarter of 2018. Revenues were $10.2 million during the fourth
quarter of 2018, a decrease of $10.4 million, compared to $20.6
million for the same quarter in 2017.
Research and development (R&D)
expenses were $34.4 million for the full year 2018, a
decrease of $25.4 million, compared to $59.8 million for the same
period in 2017. The decrease in R&D expenses was due to
decreases in clinical development costs and personnel cost,
including stock-based compensation. R&D expenses were $8.0
million for the fourth quarter of 2018, a decrease of $0.6 million,
compared to $8.6 million for the same quarter in 2017.
General and administrative (G&A)
expenses were $18.2 million for the full year 2018,
an increase of $1.4 million, compared to $16.8 million for the same
period in 2017. The increase in G&A expenses was primarily due
to increases in consulting and outside professional fees, and
transaction costs incurred as a result of the merger agreement
entered into with Mereo in the fourth quarter of 2018, offset by a
decrease in personnel costs, including stock-based compensation.
G&A expenses were $5.4 million for the fourth quarter of 2018,
an increase of $1.6 million, compared to $3.8 million for the same
quarter in 2017.
Net loss was $8.1 million ($0.21 net loss per
share, basic and diluted) for the year ended December 31, 2018,
compared to a net loss of $39.1 million ($1.04 net loss per share,
basic and diluted) for the same period of 2017. Net loss for
the fourth quarter of 2018 was $4.7 million ($0.12 net loss per
share, basic and diluted), compared to a net income of $9.5 million
($0.25 net income per share, basic and diluted) for the same
quarter in 2017.
About OncoMed Pharmaceuticals OncoMed
Pharmaceuticals is a clinical-stage biopharmaceutical company
focused on developing novel anti-cancer therapeutics. OncoMed has
internally discovered investigational drugs intended to address the
fundamental biology driving cancer's growth, resistance, recurrence
and metastasis. Product candidates in OncoMed’s portfolio include
navicixizumab (anti-DLL4/VEGF bispecific, OMP-305B83) and
etigilimab (anti-TIGIT, OMP-313M32). For further information about
OncoMed Pharmaceuticals, please see www.oncomed.com.
No Offer or SolicitationThis communication is
not intended to and does not constitute an offer to sell or the
solicitation of an offer to subscribe for or buy or an invitation
to purchase or subscribe for any securities or the solicitation of
any vote in any jurisdiction pursuant to the proposed transactions
or otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction, in each case in contravention of
applicable law. No offer of securities shall be made except by
means of a prospectus meeting the requirements of Section 10 of the
Securities Act and applicable European or UK, as appropriate,
regulations. Subject to certain exceptions to be approved by the
relevant regulators or certain facts to be ascertained, the public
offer will not be made directly or indirectly, in or into any
jurisdiction where to do so would constitute a violation of the
laws of such jurisdiction, or by use of the mails or by any means
or instrumentality (including without limitation, facsimile
transmission, telephone and the internet) of interstate or foreign
commerce, or any facility of a national securities exchange, of any
such jurisdiction. In the United Kingdom this presentation is
addressed to and directed only at, persons who are authorized or
exempt persons within the meaning of the Financial Services and
Markets Act 2000 or persons who have professional experience in
matters relating to investments falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the “Order”), persons falling within Article 49(2)(a) to (d)
of the Order or persons to whom it may otherwise lawfully be
communicated pursuant to the Order, (all such persons together
being referred to as, “Relevant Persons”). This presentation is
directed only at Relevant Persons. Other persons should not act or
rely on this presentation or any of its contents. Any investment or
investment activity to which this presentation relates is available
only to Relevant Persons and will be engaged in only with such
persons. Solicitations resulting from this presentation will only
be responded to if the person concerned is a Relevant Person.
Additional InformationImportant Additional
Information Has Been and Will Be Filed with the SECMereo has filed
with the SEC (1) a preliminary registration statement on Form F-4
containing the proxy statement of OncoMed that also constitutes a
prospectus of Mereo (the “proxy statement/prospectus”) and (2)
other documents concerning the proposed merger. BEFORE MAKING ANY
VOTING DECISION, INVESTORS AND STOCKHOLDERS ARE URGED TO CAREFULLY
READ THE PROXY STATEMENT/PROSPECTUS, AND OTHER RELEVANT DOCUMENTS
FILED OR TO BE FILED WITH THE SEC, INCLUDING THE DEFINITIVE
REGISTRATION STATEMENT ON FORM F-4, IN THEIR ENTIRETY WHEN THEY
BECOME AVAILABLE AND ANY OTHER DOCUMENTS FILED BY EACH OF MEREO AND
ONCOMED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR
INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT MEREO, ONCOMED, THE PROPOSED
TRANSACTION AND RELATED MATTERS. Investors and stockholders will be
able to obtain free copies of the proxy statement/prospectus and
other documents filed with the SEC by the parties through the
website maintained by the SEC at www.sec.gov. In addition,
investors and stockholders will be able to obtain free copies of
the proxy statement/prospectus and other documents filed with the
SEC on Mereo’s website at
https://www.mereobiopharma.com/investors-page/sec-filings/ (for
documents filed with the SEC by Mereo) or on OncoMed’s website at
http://cms2.oncomed.com/investors/financial-information/sec-filings
(for documents filed with the SEC by OncoMed).
Participants in the SolicitationMereo, OncoMed
and their respective directors, executive officers and certain
employees may be deemed to be participants in the solicitation of
proxies from the stockholders of Mereo and OncoMed, respectively in
connection with the proposed merger. Stockholders may obtain
information regarding the names, affiliations and interests of
OncoMed’s directors and officers in OncoMed’s Annual Report on Form
10-K for the fiscal year ended December 31, 2017, which was filed
with the SEC on March 8, 2018, and its definitive proxy statement
on Schedule 14A for the 2018 annual meeting of stockholders, which
was filed with the SEC on April 27, 2018. To the extent the
holdings of OncoMed’s securities by OncoMed’s directors and
executive officers have changed since the amounts set forth in
OncoMed’s proxy statement for its 2018 annual meeting of
stockholders, such changes have been or will be reflected on
Statements of Change in Ownership on Form 4 filed with the SEC.
Information regarding the names, affiliations and interests of
Mereo’s directors and officers is contained in Mereo’s Annual
Report for the fiscal year ended December 31, 2017 and can be
obtained free of charge from the sources indicated above.
Additional information regarding the interests of such individuals
in the proposed merger will be included in the definitive proxy
statement/prospectus relating to the proposed merger when it is
filed with the SEC. These documents (when available) may be
obtained free of charge from the SEC's website at www.sec.gov,
Mereo’s website at
https://www.mereobiopharma.com/investors-page/sec-filings/, or on
OncoMed’s website at
http://cms2.oncomed.com/investors/financial-information/sec-filings.
Forward Looking Statements To the extent that
statements contained in this press release are not descriptions of
historical facts regarding OncoMed Pharmaceuticals, they are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including, without limitation, the potential for the proposed
merger transaction to close and the timing of the closing of the
transaction. Such forward-looking statements involve substantial
risks and uncertainties that could cause OncoMed's clinical
development programs, future results, performance or achievements
to differ significantly from those expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
among others, the potential failure to obtain applicable
shareholder approvals in a timely manner or otherwise; the
potential failure to satisfy other closing conditions to the
proposed transaction; risks related to unanticipated costs,
liabilities or delays of the transaction; and the outcome of any
legal proceedings related to the merger. OncoMed undertakes no
obligation to update or revise any forward-looking statements. For
a further description of the risks and uncertainties that could
cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to OncoMed's
business in general, see OncoMed's Annual Report on Form 10-K filed
with the SEC on March 7, 2019 and OncoMed's other current and
periodic reports filed with the SEC.
Contacts: Sylvia Wheeler
Sylvia.wheeler@oncomed.com
Alexandra Santos asantos@wheelhouselsa.com
ONCOMED PHARMACEUTICALS, INC. |
|
Condensed Statements of
Operations |
|
(Unaudited) |
|
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue: |
$ |
10,184 |
|
|
$ |
20,640 |
|
|
$ |
44,421 |
|
|
$ |
38,154 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and
development |
|
7,977 |
|
|
|
8,572 |
|
|
|
34,443 |
|
|
|
59,839 |
|
|
General and
administrative |
|
5,372 |
|
|
|
3,809 |
|
|
|
18,172 |
|
|
|
16,761 |
|
|
Restructuring charges |
|
1,851 |
|
|
|
14 |
|
|
|
1,851 |
|
|
|
2,527 |
|
|
Total
operating expenses |
|
15,200 |
|
|
|
12,395 |
|
|
|
54,466 |
|
|
|
79,127 |
|
|
Income
(loss) from operations |
|
(5,016 |
) |
|
|
8,245 |
|
|
|
(10,045 |
) |
|
|
(40,973 |
) |
|
Interest
and other income, net |
|
350 |
|
|
|
123 |
|
|
|
1,562 |
|
|
|
828 |
|
|
Income
(loss) before provision for income taxes |
|
(4,666 |
) |
|
|
8,368 |
|
|
|
(8,483 |
) |
|
|
(40,145 |
) |
|
Income tax
benefit |
|
— |
|
|
|
(1,095 |
) |
|
|
(382 |
) |
|
|
(1,083 |
) |
|
Net income
(loss) |
$ |
(4,666 |
) |
|
$ |
9,463 |
|
|
$ |
(8,101 |
) |
|
$ |
(39,062 |
) |
|
Net income
(loss) per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
0.25 |
|
|
$ |
(0.21 |
) |
|
$ |
(1.04 |
) |
|
Diluted |
$ |
(0.12 |
) |
|
$ |
0.25 |
|
|
$ |
(0.21 |
) |
|
$ |
(1.04 |
) |
|
Shares used
to compute for net income (loss) per common share: |
|
|
|
|
|
|
|
|
Basic |
|
38,625,985 |
|
|
|
37,960,091 |
|
|
|
38,442,994 |
|
|
|
37,631,348 |
|
|
Diluted |
|
38,625,985 |
|
|
|
38,401,516 |
|
|
|
38,442,994 |
|
|
|
37,631,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ONCOMED PHARMACEUTICALS, INC. |
|
Condensed Balance Sheets |
|
(Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2018 |
|
December 31,
2017 |
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and short-term investments |
|
|
|
|
$ |
57,345 |
|
|
$ |
103,091 |
|
|
Prepaid and
other assets |
|
|
|
|
|
7,733 |
|
|
|
7,231 |
|
|
Total
assets |
|
|
|
|
$ |
65,078 |
|
|
$ |
110,322 |
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue |
|
|
|
|
$ |
3,697 |
|
|
$ |
143,838 |
|
|
Other
liabilities |
|
|
|
|
|
13,150 |
|
|
|
15,087 |
|
|
Stockholders' equity (deficit) |
|
|
|
|
|
48,231 |
|
|
|
(48,603 |
) |
|
Total
liabilities and stockholders' equity (deficit) |
|
|
|
|
$ |
65,078 |
|
|
$ |
110,322 |
|
|
|
|
|
|
|
|
|
|
|
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