Cancer stem cells are believed to initiate tumour growth and metastasis and OncoMed is trying to eliminate these cells, which are often resistant to conventional anticancer drugs, by developing antibodies that interfere with their signalling mechanisms.
The deal with GSK could earn OncoMed in excess of $1.4bn (€0.95bn), with OncoMed in line to receive an undisclosed initial payment as well as milestone payments and double-digit royalties on sales of any products developed within the collaboration.
The initial payment will be comprised of cash and an equity investment, with GSK having an option to invest in any future IPO (initial public offering) by OncoMed.
"We believe that targeting cancer stem cells has the potential to change the paradigm of how oncology patients are treated and we are very excited to be working with OncoMed to develop novel and innovative medicines in this regard," said Hugh Cowley, M.D., Senior Vice President and head of GSK's Centre of Excellence for External Drug Discovery (CEEDD).
The deal includes OncoMed's lead antibody drug candidate, OMP-21M18 which is expected to enter clinical trials in 2008, subject to a successful investigational new drug (IND) application.
The agreement will see OncoMed using its in vivo xenograft cancer stem cell models to identify monoclonal antibodies that act against a specific and undisclosed cancer stem cell pathway.
The most promising of these, including OMP-21M18 will be developed to the clinical proof-of-concept stage across a range of indications when GSK will then have an exclusive option to license the antibodies and take over responsibility for their clinical and commercial development.
OncoMed's xenograft cell models that are more representative of human tumours than the cell line approach typically used in cancer research, with therapeutics that are active against primary human tumour xenografts being more likely to be effective against tumours in the clinic.
The xenograft models have enabled OncoMed to assess the importance of specific target proteins implicated with human cancers and biological pathways that regulate stem cell biology.
"This strategic alliance provides important validation of our scientific expertise in the field of cancer stem cell research and drug development," said Paul Hastings, CEO of OncoMed.
"In addition, we gain access to significant non-dilutive financing to support the development of our novel cancer therapeutics, which we believe have the potential to significantly impact the outcome of cancer treatment."
