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Array BioPharma Reports Financial Results For the First Quarter of Fiscal 2002

BOULDER, Colo., Nov. 5 /PRNewswire/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the first quarter of fiscal 2002, ending September 30, 2001.

During the first quarter of fiscal 2002, total revenues reached $7.2 million, up 160% from $2.8 million in the same period in fiscal 2001. The net loss was $1.5 million or ($0.06) per share, compared to a net loss of $8.1 million or ($2.17) per share for the comparable quarter in fiscal 2001. The prior year's results included a charge of $5 million, or $1.34 per share for a deemed dividend related to the beneficial conversion feature of preferred stock issued on August 31, 2000. Array ended the first quarter of fiscal 2002 with $39.8 million in cash and marketable securities.

"As reflected by these results, Array continues its dramatic growth in revenues, collaborations and scientific staff during the quarter," said Robert E. Conway, Chief Executive Officer. "Array initiated four new collaborations over the summer with top tier pharmaceutical and biotech companies that have boosted our revenue growth and included potential milestones and/or royalties. This was a major step forward in our strategy to share in the long-term success we create through our collaborations."

Highlights during the first quarter of fiscal 2002 include:

  • Increased revenues by 160% for the first quarter of fiscal 2002 compared to the same period last year, which was driven by new and expanded collaborations.

  • Entered into agreements with ICOS Corporation, Takeda Chemical Industries and Vertex Pharmaceuticals Incorporated for drug discovery collaborations where Array receives fees for each scientist dedicated to the program plus potential milestones and/or royalties.

  • Enhanced high throughput screening capability by increasing scientific staff for assay development and acquiring state of the art equipment for screening up to 100,000 compounds per week. The new system screens for cellular and enzymatic therapeutic targets.

  • Expanded Array's informatics platform and computational modeling team with several world-class modelers with experience from major pharmaceutical and biotechnology companies. Included among those new recruits are Jim Blake, Ph.D., Kevin Condroski, Ph.D., and Ellen Laird, Ph.D., who have a combined total of over 25 years at major pharmaceutical companies.

  • Shipped over $600,000 of Optimer(TM) building blocks to a single major pharmaceutical company resulting in almost $900,000 of Optimer sales for the quarter compared to approximately $1.0 million for the full year of fiscal 2001.

  • Added 13 scientists to Array's staff, increasing total scientific headcount to 143, as of September 30, 2001.

"During this quarter, we continued to execute our strategy of building the next generation drug discovery platform," said Mr. Conway. "We are on track with our plans to expand the Array Discovery Platform to include cGMP manufacturing through Phase I clinical trials and drug metabolism capabilities as well as enhance our predictive computational modeling and high throughput screening groups. We are also continuing to increase our investment in our own proprietary drug research."

Array will hold a conference call on Tuesday, November 6, 2001, at 9:00 a.m. eastern time to discuss these results. Robert E. Conway, Chief Executive Officer and Michael Carruthers, Chief Financial Officer of Array, will lead the call.

    CONFERENCE CALL INFORMATION

      Date:         Tuesday, November 6, 2001

Time: 9:00 a.m. eastern time
      Toll-Free:    (800) 500-0177
      Toll:         (719) 457-2679
      Web Cast:     www.arraybiopharma.com

There will be a replay of the conference call for one week, which can be accessed by dialing toll-free (888) 203-1112, and outside the US (719) 457-0820. The access code is 636928. Replay of the call will also be available as a web cast on Array's web site at www.arraybiopharma.com .

Array BioPharma is a drug discovery company creating new drugs through the integration of chemistry, structural biology and chemoinformatics. We collaborate with leading pharmaceutical and biotechnology companies to identify novel small molecule drugs and are leveraging our discovery platform to develop our own pipeline of proprietary drug candidates. Array's scientific team has a proven track record of success in identifying promising drug candidates. For more information on Array BioPharma, please visit the company's web site at 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 below and described more fully in reports filed by Array with the Securities and Exchange Commission, including our Annual Report on Form 10-K as filed on September 27, 2001. 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, the ability of our collaborators and of Array to meet drug discovery 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, 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
                                                     September 30,
                                                  2001           2000
                                                      (unaudited)

    Revenue                                      $7,192         $2,761
    Cost of revenue*                              4,533          2,408
    Gross profit                                  2,659            353

    Research, and development expenses*           2,785          1,702
    Selling, general and
     administrative expenses*                     1,829          1,694
           Total operating expenses               4,614          3,396

           Loss from operations                  (1,955)        (3,043)
    Interest expense                                 --           (173)
    Interest income                                 461            130
    Net loss                                     (1,494)        (3,086)
    Deemed dividend related to
     beneficial conversion
     feature of preferred stock                      --         (5,000)
    Net loss applicable to
     common stockholders                        $(1,494)       $(8,086)
    Basic and diluted net loss per
     share applicable to common stockholders     $(0.06)        $(2.17)
    Shares used in computing basic and
     diluted net loss per share                  23,351          3,719

  • Includes compensation related to option grants:

        Cost of revenue                            $271           $210
        Research and development expenses           180            140
        Selling, general and
         administrative expenses                    249            357
           Total                                   $700           $707


                            Summary Balance Sheet Data
                                  (in thousands)

                                             September 30,     June 30,
                                                 2001            2001
                                              (unaudited)

    Cash, cash equivalents and
     marketable securities                      $39,779        $47,712
    Property, plant and equipment, net           23,446         17,421
    Working capital                              38,367         44,917
    Total assets                                 72,181         70,950
    Stockholders' equity                         61,981         62,468

                    

SOURCE Array BioPharma Inc.

CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193, thaugeto@arraybiopharma.com/