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Array BioPharma Reports Financial Results for the First Quarter of Fiscal 2004

BOULDER, Colo., Nov 3, 2003 /PRNewswire-FirstCall via COMTEX/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the first quarter of fiscal 2004, ended September 30, 2003.

During the first quarter of fiscal 2004, Array reported total revenue of $7.2 million, compared to $10.5 million during the same period in fiscal 2003. Net loss was $5.9 million, or ($0.21) per share, for the first quarter, compared to a net loss of $1.2 million, or ($0.04) per share, for the comparable quarter in fiscal 2003. Array ended the first quarter of fiscal 2003 with $28.9 million in cash and marketable securities.

"During the quarter, Array made significant progress on its proprietary product programs," said Robert E. Conway, Chief Executive Officer. "We are particularly excited about the rapid advancement of our lead clinical candidate in our MEK oncology program. We anticipate an IND filing for this clinical candidate in fiscal 2004, and discussions are underway with potential partners to advance clinical development and commercialization."

Highlights during the first quarter of fiscal 2004 include:

  • Increasing investment in Array's proprietary research to $4.0 million for the current quarter, compared to $2.0 million for the same period last fiscal year.
  • Continuing GLP toxicology testing for Array's MEK oncology clinical candidate with the anticipation of completing the safety assessment for the Investigational New Drug (IND) application prior to the end of 2003.
  • Progressing development of additional proprietary programs, which are in preclinical testing, for oncology and inflammation indications. We anticipate nominating a clinical candidate from one or more of these programs during fiscal 2004.
  • Advancing one additional proprietary lead generation program into lead optimization based on potent activity in several proprietary chemical compounds.
  • Investing additional resources in other proprietary programs that are in lead generation with the expectation of moving additional programs into lead optimization in fiscal 2004.
  • Initiating a drug discovery collaboration with GenPath Pharmaceuticals, Inc. to identify small molecule drugs against a proprietary GenPath target using the Array Discovery Platform. Array will receive research funding and be entitled to receive milestone payments based on the selection and progress of a development candidate.
  • Receiving a milestone payment from a major Japanese pharmaceutical company for Array's successes in creating a series of small molecule drug leads against a proprietary target.

Array will hold a conference call on Tuesday, November 4, 2003, at 9:00 a.m. eastern time to discuss these results and Array's earnings guidance for fiscal 2004. If there is any additional information provided during this call, it will be available on a replay of the call and as a web cast on www.arraybiopharma.com . Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.

CONFERENCE CALL INFORMATION

Date: Tuesday, November 4, 2003
Time: 9:00 a.m. eastern time
Toll-Free: (800) 478-6251
Toll: (913) 981-5558
Pass Code: 772295
Web Cast: www.arraybiopharma.com

There will be a replay of the conference call for one week, which can be accessed in the United States by dialing toll-free (888) 203-1112, and outside the United States (719) 457-0820. The access code is 772295. Replay of the call will also be available as a web cast on Array's web site at www.arraybiopharma.com .

About Array BioPharma:

Array BioPharma is a drug discovery company creating new small molecule drugs through the integration of chemistry, biology and informatics. Our experienced scientists utilize a comprehensive set of drug discovery technologies -- which we call the Array Discovery Platform(R) -- to invent drugs in collaboration with leading pharmaceutical and biotechnology companies and for our own pipeline of proprietary drug candidates. For more information on Array BioPharma, please visit our web site at www.arraybiopharma.com .

Array Forward-Looking Statement:

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 in our annual report filed on Form 10-K for the fiscal year ended June 30, 2003, 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 achieve and maintain profitability, the extent to which the pharmaceutical and biotechnology industries are willing to collaborate with and fund 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, our ability to continue to fund and successfully progress internal research efforts and to create effective, commercially viable drugs, and our ability to attract and retain experienced scientists and management. We are providing this information as of November 3, 2003. 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,
                                                    2003               2002
                                                          (unaudited)

    Revenue                                        $7,195            $10,504

    Cost of revenue*                                5,021              6,000
    Research and development expenses:
      for collaborations*                           2,231              1,838
      for proprietary drug discovery                4,032              2,050
    Selling, general and administrative
     expenses*                                      1,940              2,086
        Total operating expenses                   13,224             11,974

        Loss from operations                       (6,029)            (1,470)
    Interest income                                    92                256
    Net loss                                      $(5,937)           $(1,214)

    Basic and diluted net loss per share           $(0.21)            $(0.04)
    Number of shares used to compute per
     share data                                    28,261             27,558

    *Includes compensation related to
     option grants
      Cost of revenue                                $246               $265
      Research and development for collaborations     164                177
      Selling, general and administrative expenses    129                134
        Total                                        $539               $576



                           Summary Balance Sheet Data
                                 (in thousands)

                                                 September 30,       June 30,
                                                    2003               2003
                                                 (unaudited)

    Cash, cash equivalents and marketable
     securities                                    $28,914           $34,130
    Property, plant and equipment, gross            54,484            53,939
    Working capital                                 35,713            39,453
    Total assets                                    78,404            83,830
    Stockholders' equity                            72,487            77,714

SOURCE Array BioPharma Inc.

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

http://www.arraybiopharma.com