OncoMed Pharmaceuticals, Inc. announced unaudited earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported revenues were $19,518,000 for the third quarter of 2018, an increase of $14.4 million, compared to $5,106,000 for the same period in 2017. The increase in revenue was due to the company's adoption of Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers effective January 1, 2018. Income from operations was $5,791,000 against loss of $11,025,000 for the same period a year ago. Income before income taxes was $6,115,000 against loss of $10,688,000 for the same period a year ago. Net income was $6,115,000 or $0.16 net income per share, basic and diluted for the third quarter of 2018, compared to a net loss of $10,692,000 or $0.28 net loss per share, basic and diluted for the same period of 2017. The net income in the third quarter of 2018 was primarily due to higher collaboration revenue as a result of the new revenue recognition accounting standard adopted on January 1, 2018 and lower operating expenses.

For the nine months, the company reported total revenue of $34,237,000 against $17,515,000 for the same period a year ago. Loss from operations was $5,029,000 against $49,218,000 for the same period a year ago. Loss before income taxes was $3,818,000 against $48,513,000 for the same period a year ago. Net loss was $3,435,000 compared to $48,525,000 a year ago. Basic and diluted net loss per common share was $0.09 compared to $1.29 a year ago.

OncoMed estimated 2018 operating cash burn to be less than $55 million, before considering potential milestone or opt-in payments.