BOULDER, Colo.--(BUSINESS WIRE)--Dec. 23, 2008--Array BioPharma Inc. (NASDAQ:ARRY) today announced that it has received
its second draw of $40 million from Deerfield Management, a leading
healthcare investment organization and one of Array's largest
shareholders. Deerfield committed $80 million to Array in May 2008 and
provided the first $40 million draw to Array in June 2008. Together with
existing capital, these funds are being use to advance Array's seven
wholly owned small molecule drug programs in development.
The $80 million interest-bearing loan is due in April 2014. Principal
and unpaid interest may be prepaid in whole or in part at any time.
Prepayment of principal and accrued compound interest may be made at the
Company's option with shares of common stock, subject to certain
restrictions, or in cash. The Company is making quarterly interest
payments at a rate of 2 percent per annum, and will pay interest
accruing at 6.5 percent per annum, compounded quarterly, at maturity.
Deerfield received a 2.5 percent transaction fee and was issued
warrants, with a six-year term, to purchase six million shares of
Array's common stock at an exercise price of $7.54 per share.
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, inflammatory and
metabolic diseases. Our proprietary drug development pipeline includes
clinical candidates that are designed to regulate therapeutically
important target proteins and are aimed at significant unmet medical
needs. 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,
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, 2008, 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 December 23,
2008. 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.
Tricia Haugeto, 303-386-1193
Source: Array BioPharma Inc.