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Array BioPharma Reports Financial Results for the First Quarter of Fiscal 2008

BOULDER, Colo.--(BUSINESS WIRE)--Nov. 5, 2007--Array BioPharma Inc. (NASDAQ: ARRY) today reported financial results for the first quarter of fiscal 2008.

Array reported revenue of $6.6 million for the first quarter of fiscal 2008, compared to revenue of $11.0 million for the same period in fiscal 2007. Array invested $17.6 million in research and development for the quarter to advance its eight wholly-owned development programs as well as its portfolio of discovery programs. This compares to $10.9 million during the same quarter last year. Array reported a net loss of $19.1 million, or ($0.40) per share, for the first quarter, compared to a net loss of $8.2 million, or ($0.21) per share, for the same quarter in fiscal 2007. Array ended the first quarter of fiscal 2008 with $168.2 million in cash, cash equivalents and marketable securities.

"We are pleased that ARRY-543, our ErbB-2 / EGFR inhibitor, produced stable disease in patients with advanced solid tumors in a Phase 1 clinical trial, as presented at the 2007 AACR-NCI-EORTC conference and, as a result, we are advancing the drug into three Phase 1b/2 trials," said Robert E. Conway, Chief Executive Officer, Array BioPharma. "Also during the quarter, we announced the largest deal in our history with Celgene to discover, develop and commercialize targeted therapies to treat cancer and inflammation."


    First Quarter and Subsequent Accomplishments:

    Advancing Proprietary Research Programs

    --  Presented Phase 1 data on ARRY-543, an ErbB-2 and EGFR dual
        inhibitor, at the 2007 AACR-NCI-EORTC International Conference
        on Molecular Targets and Cancer Therapeutics. ARRY-543
        produced stable disease in refractory patients with advanced
        solid tumors in the Phase 1 trial. ARRY-543 was well-tolerated
        up to 300 mg BID (twice daily). Systemic concentrations of
        ARRY-543 increased with escalating doses at all dose levels
        tested. In completed cohorts, sixty percent of patients
        receiving doses of 200 mg BID and higher had prolonged stable
        disease. Based on these results, the BID regimen has been
        chosen for Phase 2 studies.

    --  Planned to begin Phase 1b / 2 clinical trials for ARRY-543
        over the next 12 months including:

        -- Expansion of the Phase 1 trial in 30 to 40 additional
        patients at the maximum tolerated dose (MTD); half of the
        patients will have trastuzumab-resistant ErbB2-positive
        metastatic breast cancer and half of the patients will have
        other ErbB-family-driven cancers;
        -- A Phase 1b/2 trial of ARRY-543 in combination with
        cetuximab in patients with metastatic colorectal cancer;
        -- A Phase 1b/2 trial of ARRY-543 in combination with
        capecitabine in patients with metastatic breast cancer; and
        -- A Phase 1b/2 trial of ARRY-543 in combination with
        trastuzumab as maintenance therapy for patients with
        metastatic breast cancer
    --  Neared completion of a Phase 1b trial with ARRY-162 added to
        methotrexate in patients with stable rheumatoid arthritis
        (RA). Array plans to begin a Phase 2 trial with ARRY-162 in RA
        patients in early 2008. ARRY-162 is likely to be the first MEK
        inhibitor to enter Phase 2 studies for the treatment of
        inflammatory disease.

    --  Advanced ARRY-797, a novel p38 inhibitor, in a Phase 1
        multiple ascending dose (MAD) clinical trial in healthy
        volunteers, which is nearing completion. Array is initiating a
        Phase 2 trial with ARRY-797 to treat patients with
        post-operative dental pain.

    --  Advanced ARRY-520, a small molecule Kinesin Spindle Protein
        (KSP) inhibitor, in a Phase 1 dose escalation clinical trial
        in cancer patients. ARRY-520 caused marked tumor regression in
        preclinical models of human solid tumors and human leukemias.

    --  Advanced ARRY-380, an oral, selective ErbB-2 inhibitor for
        cancer, in a Phase 1 clinical trial.

    --  Completed regulated safety assessment testing on ARRY-614, a
        p38 / Tie2 inhibitor. Array is preparing an IND application
        and plans to file it within the next three months.

    --  Continued ARRY-886 (AZD6244), a novel MEK inhibitor, in Phase
        2 clinical development for the treatment of metastatic
        melanoma, colorectal, pancreatic and non-small cell lung
        cancers. These trials are being conducted by our partner
        AstraZeneca PLC.

    --  Advanced ARRY-704 (AZD8330), a novel MEK inhibitor being
        developed by AstraZeneca, into a Phase 1 clinical trial in
        cancer patients.

    Partnered Research

    --  Announced a worldwide strategic collaboration with Celgene
        Corporation focused on the discovery, development and
        commercialization of novel therapeutics in cancer and
        inflammation.
        -- Array granted Celgene an option to license worldwide
        rights to drugs developed under the collaboration that are
        directed to two of the four mutually selected discovery
        targets.
        -- Array will be responsible for all discovery and clinical
        development through Phase 1 or Phase 2a. For the programs
        selected by Celgene, Celgene will be responsible for
        later-stage clinical development and commercialization,
        except for Array's co-promotion rights in the U.S.
        -- Under the agreement, Celgene made an upfront payment of
        $40 million to Array and Array is entitled to receive, for
        each drug licensed to Celgene, potential milestone payments
        of approximately $200 million, if certain discovery,
        development and regulatory milestones are achieved and $300
        million if certain commercial milestones are achieved, as
        well as royalties on net sales. Array will retain all rights
        to the other programs
    Enhancing Leadership

    --  Appointed Markus Herzig to the newly created position of Vice
        President, Regulatory Affairs & Clinical Quality Assurance.
        Mr. Herzig will oversee the Regulatory and Clinical Quality
        Assurance activities of Array's growing cancer and
        inflammation pipeline.

Array will hold a conference call on Tuesday, November 6, 2007, at 9:00 a.m. Eastern time to discuss these results. Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.

Conference Call Information
Date:          Tuesday, November 6, 2007
Time:          9:00 a.m. Eastern time
Toll-Free:     877-795-3646
Toll:          719-325-4821
Pass Code:     8474459
Web Cast:      www.arraybiopharma.com

A replay of the call will be available as a webcast on www.arraybiopharma.com and by phone for one week by dialing toll-free 888-203-1112 or 719-457-0820. The access code is 8474459.

About Array BioPharma

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer and inflammatory diseases. Our proprietary drug development pipeline includes clinical candidates that are designed to regulate therapeutically important target proteins and are aimed at large market opportunities. 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.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our future plans for advancing certain of our proprietary drug programs, the potential to earn future milestone payments, license fees or royalty revenue, and the plans of our collaborators to further develop drugs we have out-licensed or on which we are collaborating. These statements involve significant risks and uncertainties, including those discussed in our annual report filed on form 10-K for the year ended June 30, 2007, 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 continue to fund and successfully progress internal research efforts and to create effective, commercially viable drugs, 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 on their drug discovery activities, our ability to out-license our proprietary candidates on favorable terms, 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 objectives tied to milestones and royalties, and our ability to attract and retain experienced scientists and management. We are providing this information as of November 5, 2007. 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 Statements of Operations
               (in thousands, except per share amounts)
                             (Unaudited)

                                               Three Months Ended
                                                  September 30,
                                           ---------------------------
                                               2007          2006
                                           ------------- -------------

Revenue:
  Collaboration revenue                           $5,621        $7,989
  License and milestone revenue                      972         3,037
                                           ------------- -------------
     Total revenue                                 6,593        11,026

Operating expenses (a)
  Cost of revenue (1)                              5,313         6,267
  Research and development for
   proprietary drug discovery (2)
                                                  17,619        10,853
  General and administrative expenses (3)          4,377         2,969
                                           ------------- -------------
      Total operating expenses                    27,309        20,089
                                           ------------- -------------

Loss from operations                            (20,716)       (9,063)

Interest income                                    1,907         1,072
Interest expense                                   (245)         (240)
                                           ------------- -------------
Net loss                                       $(19,054)      $(8,231)
                                           ============= =============

Basic and diluted net loss per share             $(0.40)       $(0.21)
                                           ============= =============
Number of shares used to compute per
 share data                                       47,109        39,148
                                           ============= =============

(a) Includes stock-based compensation
 expense
  (1) Cost of revenue                               $305          $329
  (2) Research and development for
   proprietary drug discovery
                                                     648           370
  (3) General and administrative expenses            429           503
                                           ------------- -------------
      Total                                       $1,382        $1,202
                                           ============= =============

                      Summary Balance Sheet Data
                            (in thousands)

                                           September 30,   June 30,
                                               2007          2007
                                           ------------- -------------

Cash, cash equivalents and marketable
 securities                                     $168,166      $141,331
Working capital                                  137,297       120,829
Total assets                                     202,279       174,974
Long term debt                                    15,000        15,000
Stockholders' equity                              90,492       107,703

CONTACT: Array BioPharma Inc.
Tricia Haugeto, 303-386-1193
thaugeto@arraybiopharma.com

SOURCE: Array BioPharma Inc.