BOULDER, Colo., May 3 /PRNewswire-FirstCall/ -- Array BioPharma Inc.
(Nasdaq: ARRY) today reported financial results for the third quarter of
fiscal 2004, ended March 31, 2004.
During the third quarter of fiscal 2004, Array reported total revenue of
$9.7 million, compared to $8.0 million during the same period in fiscal 2003.
Revenue increased due to recognizing a portion of the up front payments from
the out-licensing agreements initiated in December 2003 with AstraZeneca and
Genentech. Net loss was $9.7 million, or ($0.34) per share, for the third
quarter, which includes a $5.6 million non-cash charge, or ($0.20) per share,
to reduce the carrying value of our chemical compound inventories. For the
comparable quarter in fiscal 2003, we had a net loss of $6.1 million, or
($0.22) per share. Array ended the third quarter of fiscal 2004 with
$37.1 million in cash and marketable securities.
"During the quarter, Array received clearance from the FDA to initiate a
Phase I clinical trial for our lead cancer compound, ARRY-142886," said Robert
E. Conway, Chief Executive Officer, Array BioPharma. "We expect ARRY-142886
to enter Phase I prior to the end of our fiscal year, demonstrating our
ability to rapidly advance high quality clinical candidates. We are
continuing to build a strong pipeline of orally active drug candidates focused
on cancer and inflammatory disease."
During the third quarter of fiscal 2004 Array:
- Received clearance from the Food & Drug Administration to initiate a
Phase I clinical trial for ARRY-142886 (AZD6244), a novel MEK
inhibitor discovered by Array and out-licensed to AstraZeneca.
- Presented preclinical results for ARRY-142886 at the 95th Annual
Meeting of the American Association for Cancer Research.
- Progressed development of additional proprietary programs aimed at
four targets, EGFR/ErbB-2 (dual inhibitor program), ErbB-2, p38 and
MEK (inflammation), which are in preclinical testing, for oncology and
inflammation indications. Given satisfactory results, Array
anticipates nominating a clinical candidate and initiating GLP
toxicology testing from one or more of these programs during 2004.
- Invested additional resources in other proprietary programs that are
in lead generation with the expectation of moving several programs
into lead optimization in 2004.
- Appointed S. Gail Eckhardt, M.D. and Randall K. Johnson, Ph.D., to
Array's Scientific Advisory Board, providing Array with strong
Subsequent to the third quarter of fiscal 2004 Array:
- Appointed Douglas E. Williams, Ph.D., to Array's Board of Directors.
Dr. Williams brings over 15 years of senior level biotechnology
management experience to Array's Board. He currently serves as
Seattle Genetics' Chief Scientific Officer and Executive Vice
President of Research and Development, and is a member of their Board
of Directors. Previously, Dr. Williams served at Immunex Corporation
as Executive Vice President, Chief Technology Officer and a member of
Immunex's Board of Directors.
- Commenced a drug discovery collaboration with Takeda Chemical
Industries, Ltd. to create a series of small molecule drug leads
against a Takeda target. Takeda will pay fees to Array based on the
number of Array scientists working on the research phase of the
agreement. Array will be entitled to receive success payments based
on reaching certain development milestones and royalties based upon
the sales of products resulting from the collaboration.
"We were pleased to meet the consensus estimates for revenue and earnings
per share from operations for the third quarter," said Michael Carruthers,
Chief Financial Officer, Array BioPharma. "Today, two-thirds of Array's
scientific resources are devoted to our proprietary research and staffing out-
licensing deals and we expect to continue our evolution to a drug discovery
company. Primarily as a result of this shift, we elected to write down the
value of our inventories by increasing the reserves for our Lead Generation
Library and Optimer(R) building block compounds."
Array also reported revenue of $24.5 million for the nine-month period
ended March 31, 2004, compared to revenue of $28.0 million for the same
period in fiscal 2003. Net loss for the nine months ended March 31, 2004, was
$21.9 million, or ($0.77) per share, compared to a net loss of $10.2 million,
or ($0.37) per share, reported in the same period in fiscal 2003.
Array will hold a conference call on Tuesday, May 4, 2004, at 9:00 a.m.
eastern time to discuss these results. 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, May 4, 2004
Time: 9:00 a.m. eastern time
Toll-Free: (800) 210-9006
Toll: (719) 457-2621
Pass Code: 484222
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 484222. Replay of the
call will also be available as a web cast on Array's web site at
About Array BioPharma:
Array BioPharma is creating the next generation of orally active drugs by
integrating the latest advances in chemistry, biology and informatics. Our
drug development pipeline is focused primarily in cancer and inflammatory
disease and includes many promising small molecule drugs that affect disease
pathways with well-validated targets. Array also collaborates with leading
pharmaceutical and biotechnology companies to invent and optimize 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 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 to in-
license drug candidates for their product pipelines and 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 May 3, 2004. 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 Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
Collaboration revenue $7,667 $7,744 $21,585 $26,980
License, royalty and milestone
revenue 2,021 283 2,893 1,053
Total revenue 9,688 8,027 24,478 28,033
Costs and expenses
Cost of revenue* 6,045 5,754 16,076 17,424
Provision for excess inventory 5,616 -- 5,616 --
Research and development
for collaborations* 2,435 2,999 6,886 7,182
for proprietary drug
discovery 3,511 3,014 12,108 7,476
Selling, general and
administrative expenses* 1,912 2,545 5,990 6,832
Total operating expenses 19,519 14,312 46,676 38,914
Loss from operations (9,831) (6,285) (22,198) (10,881)
Interest income 99 172 268 659
Net loss $(9,732) $(6,113) $(21,930) $(10,222)
Basic and diluted net loss per
share $(0.34) $(0.22) $(0.77) $(0.37)
Number of shares used to compute
per share data 28,601 27,930 28,416 27,735
*Includes compensation related
to option grants
Cost of revenue $241 $265 $733 $795
Research and development for
collaborations 161 177 489 530
Selling, general and
administrative expenses 129 134 387 402
Total $531 $576 $1,609 $1,727
Summary Balance Sheet Data
March 31, June 30,
Cash, cash equivalents and marketable
securities $37,142 $34,130
Inventories, net 4,137 9,065
Property, plant and equipment, gross 56,011 53,939
Working capital 23,906 39,453
Total assets 78,095 83,830
Stockholders' equity 58,249 77,714
SOURCE Array BioPharma Inc.
Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
/Web site: http://www.arraybiopharma.com /