OncoMed declares special dividend of contingent value rights

OncoMed (OMED) announced that its board of directors declared a one-time special dividend in the form of a contractual right to receive, on a pro rata basis, cash payments from OncoMed upon the actual receipt by OncoMed or its affiliates of certain contingent cash amounts in the future following the exercise by Celgene (CELG) or certain of Celgene’s affiliates of the exclusive option granted by OncoMed to Celgene in relation to OncoMed’s etigilimab product. More specifically, if a specified approval or sales milestone is achieved or if royalties are paid by Celgene to OncoMed or its affiliates in respect of the etigilimab product, the special dividend will entitle stockholders to receive an amount in cash equal to such holder’s pro rata portion of any cash payments made by Celgene and actually received by OncoMed or its affiliates in respect thereof, net of any tax and reasonable costs and expenses incurred by OncoMed or its affiliates in connection with such payments. All payments will be made to stockholders of record as of the close of business on April 5. The special dividend will be distributed as of the close of business on April 5. In the event that OncoMed receives no payment amounts under the TIGIT license agreement, OncoMed stockholders will not receive any cash payments pursuant to this special dividend. There can be no assurance that any of the applicable milestones and royalties under the TIGIT license agreement will be achieved or that any stockholders will receive payments.
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