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Array BioPharma Reports Financial Results for the Third Quarter And the First Nine Months of Fiscal 2001

BOULDER, Colo., May 7 /PRNewswire/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the third quarter and the first nine months of fiscal 2001, ending March 31, 2001.

During the third quarter of fiscal 2001, total revenues reached $4.7 million, up 160% from $1.8 million in the same period in fiscal 2000. The net loss was $1.7 million or ($0.07) per share, compared to a net loss of $1.2 million or ($0.40) per share for the comparable quarter in fiscal 2000. Revenues for the nine-month period ending March 31, 2001 were $11.3 million compared to revenues of $4.5 million for the same period in fiscal 2000. The net loss for the nine months ending March 31, 2001 was $14.0 million or ($1.06) per share compared to a net loss of $3.3 million or ($1.11) per share, reported in the same period in fiscal 2000. Array ended the third quarter with $56.3 million in cash and marketable securities.

"These results reflect Array's continued rapid growth," said Robert E. Conway, Chief Executive Officer. "Revenues have more than doubled during the first nine months of fiscal 2001 compared to revenues in the comparable period of fiscal 2000, and demand for Array's expertise continues to grow. We currently employ 115 scientists and continue to recruit top-quality scientists at a rapid pace. In addition, we have now secured first-rate laboratory space adjacent to our existing Boulder laboratory that will allow us to employ up to 350 scientists over the next few years."

Highlights during the third quarter of fiscal 2001 include:

  • Increased revenues by 160% for the third quarter of fiscal 2001 and 150% for the nine months ending March 31, 2001 compared to the same periods last year.

  • Entered into a long-term lease that will increase laboratory space to approximately 190,000 square feet over the next four years, accommodating 300-350 scientists.

  • Appointed John L. Zabriskie, Ph.D. to Array's board of directors and as a member of the Audit Committee. Dr. Zabriskie was past Chairman, CEO and President of NEN Life Sciences Products, Inc. and the CEO and President of Pharmacia & Upjohn, Inc.

  • Hired James P. Rizzi, Ph.D., as Director of Computational Technologies. Dr. Rizzi is leading the continued development of Array's chemoinformatics platform and the information technology department. Prior to joining Array, Dr. Rizzi held various business and scientific positions at Tripos, Inc., Amgen Inc. and Pfizer Inc.

  • Expanded relationships with a number of existing collaborators including ICOS Corporation, which added five scientists to our current lead optimization collaboration and subscribed to our diversity library.

"During this quarter, we continued to execute our strategy of building the industry's premier drug discovery platform. Array utilizes its drug discovery platform in collaboration with top pharmaceutical and biotechnology companies as well as for its own proprietary drug discovery efforts," said Mr. Conway. "Array's experienced scientists have created this drug discovery platform utilizing the latest tools and technologies including structural biology, high throughput screening, drug metabolism and analytical, computational, combinatorial and medicinal chemistry as well as process research and development."

The pro forma net loss per share for the current quarter and the first nine months of fiscal 2001 is ($0.07) and ($0.48) respectively, assuming conversion of all convertible preferred stock into common stock as of the beginning of the fiscal year. These results include $698,000 and $4.0 million, respectively, of non-cash compensation-related charges for the current quarter and the nine months ending March 31, 2001. Excluding these non-cash charges results in adjusted pro forma net loss per share of ($0.04) and ($0.27) for the third quarter and the first nine months of fiscal 2001, respectively.

Array will hold a conference call on Tuesday, May 8, 2001 at 9:00 a.m. EDT to discuss these results. Robert E. Conway, Chief Executive Officer and R. Michael Carruthers, Chief Financial Officer of Array, will lead the call.

Date: Tuesday, May 8, 2001
Time: 9:00 a.m. Eastern Time
     Conference call numbers:
     Toll-free:           (800) 946-0708
     Outside the U.S.A.   (719) 457-2639
     Web cast:   

There will be a replay of the conference call for 7 days that can be accessed by dialing toll-free (888) 203-1112, and outside the U.S. (719) 457-0820. The access code is 482910. Replay of the call will also be available as a web cast on Array's web site at

Array BioPharma is a drug discovery company creating new drugs through innovations in chemistry and structural biology. Array's world-class scientific team integrates chemistry and structural biology with an information-based technology platform to create higher quality drug candidates. Array provides drug discovery expertise to collaborators and for its own proprietary research. For more information on Array BioPharma, please visit the company's web site at

This press release contains projections and other forward-looking statements that involve significant risks and uncertainties. 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 collaborate with third parties on their drug discovery activities and our ability to attract and retain experienced scientists and management as well as the risk factors contained in our reports filed with the Securities and Exchange Commission, including our final prospectus as filed on November 17, 2000. We are providing this information as of May 7, 2001. 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)

                             Three Months Ended          Nine Months Ended
                                 March 31,                   March 31,
                             2001          2000         2001          2000
                                (unaudited)                 (unaudited)

    Revenue                 $4,741        $1,825      $11,335        $4,526
    Cost of revenue*         3,415         1,173        9,114         2,791
    Gross profit             1,326           652        2,221         1,735

    Research, and
     development expenses*   2,160         1,020        5,977         2,636
    Selling, general and
     expenses*               1,539           888        6,188         2,421
    Total operating
     expenses                3,699         1,908       12,165         5,057
    Loss from operations    (2,373)       (1,256)      (9,944)       (3,322)
    Interest expense          (148)          (87)        (501)         (258)
    Interest income            832           126        1,439           237
    Net loss                (1,689)       (1,217)      (9,006)       (3,343)
    Pro forma net loss per
     share - including
     preferred              $(0.07)        $(0.09)      $(0.48)      $(0.30)
    Pro forma shares used
     in computing net loss
     per share - including
     preferred              23,022        12,835       18,664        11,213
    Deemed dividend related
     to beneficial
     conversion feature
     of preferred stock         --            --      (5,000)            --

    Net loss applicable
     to common
     stockholders          $(1,689)      $(1,217)    $(14,006)      $(3,343)
    Basic and diluted
     net loss per share
     applicable to common
     stockholders           $(0.07)        $(0.40)      $(1.06)      $(1.11)
    Shares used in
     computing basic and
     diluted net loss
     per share              23,022         3,047       13,198         3,005

  • Includes compensation related to option grants:

      Cost of revenue         $264            $5         $750            $5
      Research and development
       expenses                176             4          478             4
      Selling, general and
       expenses                258           338        2,807           693
        Total                 $698          $347       $4,035          $702

                            Summary Balance Sheet Data
                                  (in thousands)

                                        March 31,      June 30,
                                           2001          2000

    Cash, cash equivalents
     and marketable securities           $56,263       $5,784
    Working capital                       51,975        2,210
    Total assets                          74,469       15,823
    Stockholders' equity                  63,258        6,653

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SOURCE Array BioPharma Inc.

CONTACT: Joanna K. Money, Ph.D., of Array BioPharma Inc., 303-381-6676,

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