OncoMed rockets on possible multi-billion dollar deal with Celgene
US biotech companies OncoMed Pharmaceuticals (Nasdaq: OMED) and Celgene (Nasdaq: CELG) have entered an agreement to jointly develop and commercialize up to six anti-cancer stem cell (CSC) product candidates from OncoMed's biologics pipeline, including demcizumab (OMP-21M18, Anti-DLL4).
The news of the deal, with includes an initial $177.25 million payment to OncoMed, saw the latter’s shares leap 68% to $23.50 in premarket trading on Tuesday (and up 81% to $25.50 later in the day). Under the terms of the deal, OncoMed will receive an upfront payment of $155 million, and Celgene will also purchase around $22.25 million in a private placement of newly issued shares of OncoMed's common stock at a price of $15.13 per share.
Also includes option exercise payments of as much as $3 billion
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