Celgene Corporation / OncoMed Pharmaceuticals, Inc.

Solid Tumors (NSCLC and Pancreatic Cancer lead indications)

Disease Overview

Non-small cell lung cancer and pancreatic ductal adenocarcinoma are among the most lethal common solid tumors in the US, with limited durable response to chemotherapy alone. The cancer stem cell hypothesis — that a small population of treatment-resistant tumor-initiating cells drives recurrence and metastasis — was a central preclinical premise of OncoMed's pipeline and the rationale for Celgene's investment.

Competitive Landscape

In late 2013, the oncology landscape was on the cusp of the checkpoint-inhibitor era (Keytruda and Opdivo would not be approved until 2014). First-line NSCLC standard of care was platinum doublet chemo (often Celgene's own Abraxane plus carboplatin) and pancreatic cancer SOC was gemcitabine plus Abraxane or FOLFIRINOX. Cancer stem cell biology was contested but well-funded: GSK had partnered with OncoMed on vantictumab (anti-Frizzled), Bayer with Compugen, and Boehringer Ingelheim and Roche each ran internal CSC programs. Celgene's $177M upfront ($155M cash plus $22.25M equity at $15.13/share) plus >$3B in milestones for options on demcizumab, an anti-DLL4/VEGF bispecific, and four other biologics was the largest CSC pact in the sector. OncoMed shares more than doubled on the announcement; Celgene shares slipped on size of the upfront. The thesis later collapsed when demcizumab failed both DENALI (NSCLC) and YOSEMITE (pancreatic) Phase 2 trials in 2017 and Celgene relinquished options on multiple programs, validating the structural skepticism of CSC-targeted approaches relative to the rapid rise of immuno-oncology.