OncoMed Pharmaceuticals, a biotech developing new antibody
therapeutics to be used in cancer treatments, announced on
Wednesday that it will offer 4 million shares in its IPO. The
Redwood City, CA-based company did not disclose the price range
of the shares offered. Although initial filings indicated that
Oncomed plans to raise up to $115 million, we estimate that the
IPO will raise $75 million or less since only 4 million shares
are being offered.
OncoMed has five product candidates in clinical trials and two
other candidates in pre-clinical development. Its most advanced
candidate is currently in Phase Ib/II trials. The company has
entered into collaboration agreements with GlaxoSmithKline for
the development of two of its drug candidates and could receive
collaboration payments of up approximately $350 million for each
drug. OncoMed has also received $40 million in collaboration
revenue from Bayer and could receive additional payments up to
$388 million under the Bayer collaboration agreement.
OncoMed Pharmaceuticals, which was founded in 2004 and booked $25
million in collaboration and grant revenue for the 12 months
ended March 31, 2013, plans to list on the NASDAQ under the
symbol OMED. Jefferies and Leerink Swann are the joint
bookrunners on the deal.