OncoMed Pharma Stock Drops 17% After Clinical Trial Miss; Q1 Revenue Miss

OncoMed Pharmaceuticals Inc. shares plummeted 16.9% in premarket trade on Monday after the company reported a mid-stage clinical trial miss in non-small cell lung cancer and a first-quarter revenue miss. The drug, demcizumab, was being tested as a combination treatment but didn't meet its efficacy endpoints compared with the placebo, with patients on the placebo demonstrating better results, the company said. As a result, the company is discontinuing patient dosing in demcizumab trials, which also includes an early-stage clinical trial, and will review the program with its partner Celgene . The company reported a first quarter loss of $22.6 million, or a 61 cent per share loss, compared with a loss of $27.2 million, or a 90 cent per share loss, in the year-earlier period. The FactSet earnings-per-share consensus was a loss of 63 cents. Revenue declined to $6.2 million from $6.4 million, compared with the FactSet consensus of $8.1 million. The discontinued demcizumab program appears to add to OncoMed's recent woes, with the company deciding to discontinue two drug programs in mid-April after disappointing clinical trial results, and reporting that Bayer wouldn't be using its option to license two of the company's cancer drugs. OncoMed shares have declined 54.8% over the last three months, compared with a 4.6% rise in the S&P 500 .