Under the terms of the agreement, Bayer and OncoMed will develop antibodies, protein therapeutics, and small molecules as potential novel anti-cancer stem cell therapeutics targeting the Wnt signaling pathway. In addition to an upfront payment of $40 million, OncoMed is eligible to receive cash payments for product candidates that Bayer options and possible additional payments upon achievement of certain development and commercialization milestones. The collaboration could potentially include up to five compounds. The agreement includes potential significant near-term milestone payments from Bayer. For each biotherapeutic or small molecule drug candidate successfully developed through Phase III clinical trials and regulatory approval, OncoMed's payments could total up to $387.5 million (biotherapeutic drug) and $112 million (small molecule drug) per program, already including net sales milestones.
OncoMed will utilize its proprietary human cancer stem cell models to discover and advance three potential first-in-class antibody and protein therapeutics into clinical testing and through Phase I studies. Bayer receives an option to exclusively license antibody and protein therapeutic product candidates at any point up to the completion of Phase I testing. Following option exercise, Bayer will lead development and commercialization of licensed product candidates and will have rights to commercialize approved products in all markets. OncoMed will be eligible to receive double-digit royalties on net product sales. The agreement contains provisions under which OncoMed may co-develop biologic therapeutics with Bayer. The collaboration includes for example OncoMed's lead Wnt pathway antibody, [OMP-18R5], which is intended to enter clinical testing in 2011.
In addition to the biologics approach, Bayer will use its in-house expertise and lead the discovery and development of small molecule compounds as therapeutic candidates modulating Wnt signaling. OncoMed will assist Bayer in the evaluation and advancement of such candidates by providing its proprietary assay technology and in vitro/in vivo profiling of the compounds. OncoMed will be eligible to receive single-digit royalties on net product sales.
SOURCE Bayer HealthCare