|ARRAY BIOPHARMA INC filed this Form 10-K on 08/11/2017|
Below is a summary of our general and administrative expenses (dollars in thousands):
Fiscal 2017 compared to Fiscal 2016 – The increase in general and administrative expenses in fiscal 2017 are primarily driven by costs associated with building our commercial infrastructure as we prepare for the potential launch of certain of our drug candidates as well as increased legal expenses and share-based compensation charges compared with the prior year.
Fiscal 2016 compared to Fiscal 2015 – The increase in general and administrative expenses in fiscal 2016 are primarily due to commercialization pre-launch marketing activities, with no similar costs being incurred during the prior fiscal year.
Other Income (Expense), Net
Below is a summary of our other income (expense) (dollars in thousands):
(a) Percent change is not meaningful.
Fiscal 2017 compared to Fiscal 2016 – Prior to September 30, 2016, the shares of preferred stock of VentiRx Pharmaceuticals, Inc. that we received under a February 2007 collaboration and licensing agreement with VentiRx had a recorded cost of $1.5 million. We did not have a controlling interest nor did we exert significant influence over VentiRx. During the first quarter of fiscal 2017, a triggering event occurred related to the underlying viability of the investment which caused us to record a $1.5 million impairment loss related to this investment. During the third quarter of fiscal 2017, Celgene Corporation acquired all of the outstanding capital stock of VentiRx and we received cash proceeds in the amount of $0.5 million for our share of the proceeds of this acquisition. As of June 30, 2017, we have no remaining equity in VentiRx. As a result of the acquisition by Celgene, we may be entitled to our portion of additional proceeds from Celgene that are currently held in escrow, as well as our proportionate share of future milestone payments if VentiRx achieves certain development milestones set forth in the agreement with Celgene.
We also recorded a $2.6 million increase in the fair value of the Convertible Promissory Notes issued to Redmile during the twelve months ended June 30, 2017, as discussed in Note 8 - Fair Value Measurements to our financial statements included elsewhere in this Annual Report on Form 10-K.