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Array BioPharma Reports Financial Results for the First Quarter of Fiscal 2006
BOULDER, Colo., Oct. 31 /PRNewswire-FirstCall/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the first quarter of fiscal 2006.
For the first quarter of fiscal 2006, Array reported total revenue of $11.2 million, compared to revenue of $9.9 million for the same period in fiscal 2005. Revenue increased primarily due to additional research funding from Genentech, Inc. and InterMune, Inc. Investment in research and development for proprietary drug discovery was $8.6 million, an increase of $4.1 million over the same quarter last year, primarily due to expenses related to preclinical development. Array also reported a net loss of $9.5 million, or ($0.25) per share, for the first quarter, compared to a net loss of $5.6 million, or ($0.19) per share, for the same quarter in fiscal 2005. The reported net loss for the current quarter includes a non-cash charge of $1.6 million, or ($0.04) per share, which the Company has preliminarily estimated for stock option compensation under the new accounting rules. Array ended the first quarter of fiscal 2006 with $83.7 million in cash and marketable securities.
"During the first quarter, we continued Phase Ib clinical development on our lead cancer compound, the MEK inhibitor ARRY-142886," said Robert E. Conway, Chief Executive Officer, Array BioPharma. "We further strengthened our oncology pipeline and filed an IND with the FDA on our ErbB-2/EGFR dual inhibitor, ARRY-334543, which is advancing into Phase I clinical development this fall."
Array will hold a conference call on Tuesday, November 1, 2005, at 9:00 a.m. eastern time to discuss these results. If there is any additional information provided during this call, it will be available on a replay of the call and as a web cast on www.arraybiopharma.com. Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.
Conference Call Information
There will be a replay of the conference call for one week, which can be accessed in the United States by dialing toll-free (888) 203-1112, and outside the United States (719) 457-0820. The access code is 9419226. Replay of the call will also be available as a web cast on Array's web site at www.arraybiopharma.com.
About Array BioPharma:
Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat life threatening and debilitating diseases. Our proprietary drug development pipeline is focused on the treatment of cancer and inflammatory disease and includes clinical candidates that are designed to regulate therapeutically important targets. In addition, leading pharmaceutical and biotechnology companies collaborate with Array to discover and develop drug candidates across a broad range of therapeutic areas. For more information on Array, please go to www.arraybiopharma.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties, including those discussed in our annual report filed on form 10-K for the year ended June 30, 2005, and in other reports filed by Array with the Securities and Exchange Commission. Because these statements reflect our current expectations concerning future events, our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors. These factors include, but are not limited to, our ability to achieve and maintain profitability, the extent to which the pharmaceutical and biotechnology industries are willing to in-license drug candidates for their product pipelines and to collaborate with and fund third parties for their drug discovery activities, our ability to out-license our proprietary candidates on favorable terms, our ability to continue to fund and successfully progress internal research efforts and to create effective, commercially viable drugs, risks associated with our dependence on our collaborators for the clinical development and commercialization of our out-licensed drug candidates, the ability of our collaborators and of Array to meet drug objectives, including clinical trials, tied to milestones and royalties, and our ability to attract and retain experienced scientists and management. We are providing this information as of October 31, 2005. We undertake no duty to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements or of anticipated or unanticipated events that alter any assumptions underlying such statements.
Array BioPharma Inc. Condensed Statement of Operations (in thousands, except per share amounts) (Unaudited) Three Months Ended September 30, 2005 2004 Revenue: Collaboration revenue $8,284 $7,345 License and milestone revenue 2,958 2,512 Total revenue 11,242 9,857 Operating expenses * Cost of revenue (1) 9,398 8,793 Research and development for proprietary drug discovery (2) 8,631 4,482 Selling, general and administrative expenses (3) 3,294 2,335 Total operating expenses 21,323 15,610 Loss from operations (10,081) (5,753) Interest expense (129) - Interest income 684 138 Net loss $(9,526) $(5,615) Basic and diluted net loss per share $(0.25) $(0.19) Number of shares used to compute per share data 38,498 28,907 *Includes stock-based compensation expense (1) Cost of revenue $533 $113 (2) Research and development for proprietary drug discovery 419 - (3) Selling, general and administrative expenses 648 38 Total $1,600 $151 Summary Balance Sheet Data (in thousands) September 30, June 30, 2005 2005 Cash, cash equivalents and marketable securities $83,706 $92,706 Property, plant and equipment, gross 63,054 61,517 Working capital 72,536 80,435 Total assets 117,976 127,952 Long-term debt 11,327 10,000 Stockholders' equity 91,736 99,415
SOURCE Array BioPharma Inc.