OncoMed Pharmaceuticals (OMED: NASDAQ) gapped up 21.10% Thursday to close at $3.73 per share. The increase in share price was enough to capture the Daily Stock Challenge Breakout award. OncoMed is a clinical-stage biopharmaceutical company focused on discovering and developing novel anti-cancer therapeutics.

The company has had a terrible year from a price performance standpoint. OncoMed’s shares have fallen from a high of $12.71 to a recent low of $2.91. However, “the company could be eligible to receive approximately $1.5 billion in downstream milestones…” according to OncoMed. More on that shortly. For now, let’s review the company’s latest financial results reported yesterday.


OncoMed Reports Mixed Financial Results


As of June 30, 2017, OncoMed had reported cash, and short-term investments totaled $129.8 million. Certainly, the company was recently trading below cash given the company’s market cap is only approximately $140.3 million. On August 2nd, OncoMed reported,

“Net loss for the second quarter of 2017 was $15.2 million ($0.40 per share), compared to $27.7 million ($0.91 per share) for the same period of 2016. The change in net loss from the prior year quarter was due to lower R&D and G&A expenses and restructuring charges.”

Furthermore, the company provided its 2017 financial guidance,


“OncoMed anticipates 2017 full-year cash expenses will be approximately $90 million. Based on the current plan, OncoMed anticipates that its current cash balance is sufficient to fund pipeline development and company operations through the third quarter of 2019, before considering potential opt-in milestones under our Celgene collaboration.”


This Celgene collaboration has significant upside as explained by OncoMed,

“Following potential opt-in, on a per program basis, OncoMed would be eligible to co-develop and co-commercialize rosmantuzumab and/or navicixizumab with Celgene, while Celgene would assume all downstream costs and development activities for anti-TIGIT. In addition to the $98 million in potential opt-in payments related to these three programs, the company could be eligible to receive approximately $1.5 billion in downstream milestones, plus potential royalties and/or profit-sharing.”

Click here to read the entire second quarter 2017 financial results press release.


August Stock Challenge Update


One lonely member sees the value. Long-time Pinnacle member since October of 2007, ‘Jeff‘ selected OncoMed for August. His combined average return jumped 11.11% Thursday.

Pinnacle member ‘micronta‘ is still leading with his sneaky selection. Past Stock Challenge Champ ‘avispa‘ is chasing him with a 26.15% return after three days.

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