In June 2010, OncoMed entered into a strategic alliance with Bayer HealthCare to discover, develop and commercialize novel anti-cancer stem cell therapeutics. Under the agreement, Bayer and OncoMed will develop up to five agents targeting the Wnt signaling pathway. OncoMed will discover and advance biopharmaceutical products through Phase I. Bayer gains an option to exclusively license antibody and protein therapeutics at any point up to the completion of Phase I for development and commercialization. In addition to an upfront payment of $40 million, OncoMed will receive development and commercial milestone payments of up to $387.5 million per program for each antibody or protein therapeutic successfully developed, in addition to percentage royalties on net product sales in the mid-single digits to low double digits. For any small molecule candidates (for which Bayer will lead discovery and development efforts), OncoMed's payments could total up to $112 million per program in addition to single digit percentage royalties on net product sales.In April 2011, OncoMed and Bayer expanded their collaboration, executing a clinical manufacturing agreement, whereby Bayer would manufacture a Wnt pathway biologic at their Berkeley, California facility.
In December 2007, OncoMed and GlaxoSmithKline (GSK) entered into a strategic alliance to develop cancer stem cell antibody therapeutics targeting the Notch signaling pathway. In July 2011, OncoMed amended the terms of its research and development agreement with GSK, and the collaboration is now focused entirely on the development of two product candidates, tarextumab (anti-Notch2/3, OMP-59R5) and anti-Notch1 (OMP-52M51). Under this collaboration, OncoMed is eligible to receive from GSK (1) with respect to tarextumab, aggregate payments of up to $344.5 million, in addition to percentage royalties in the low double digits to high teens on net product sales, and (2) with respect to anti-Notch1, aggregate payments of up to $349.5 million, in addition to percentage royalties in the low double digits to high teens on net product sales.