BOULDER, Colo., Aug 2, 2004 /PRNewswire-FirstCall via COMTEX/ -- Array BioPharma Inc.
(Nasdaq: ARRY) today reported financial results for the fourth quarter and the
year ended June 30, 2004.
During the fourth quarter of fiscal 2004, Array reported total revenue of
$10.4 million, including $3.8 million from up-front and milestone payments.
Revenue was $7.1 million during the same period in fiscal 2003, which included
$0.4 million from up-front and milestone payments. Net loss was $3.6 million,
or ($0.12) per share, for the fourth quarter, compared to a net loss of
$9.4 million, or ($0.33) per share, for the same quarter in fiscal 2003.
Array ended fiscal 2004 with $37.4 million in cash and marketable securities,
an increase of $3.3 million from the end of fiscal 2003.
"During the fourth quarter, we advanced our first drug into clinical
development, initiating a Phase I clinical trial for our lead cancer compound,
the MEK inhibitor ARRY-142886," said Robert E. Conway, Chief Executive
Officer, Array BioPharma. "In view of this success and the results we are
achieving in our other research programs, we anticipate rapidly advancing
additional drug candidates into clinical development."
Fourth Quarter of Fiscal 2004 Accomplishments:
Advancing Proprietary Research Programs
* Initiated a Phase I clinical trial for ARRY-142886 (AZD6244), a novel
MEK inhibitor discovered by Array and out-licensed to AstraZeneca,
which triggered a $4.0 million milestone payment from AstraZeneca.
* Advanced four proprietary programs in preclinical development:
EGFR/ErbB-2 (dual inhibitor program) and ErbB-2 for cancer, and p38
and MEK for inflammation. Array anticipates nominating a clinical
candidate and initiating regulated preclinical safety testing from one
or more of these programs in fiscal 2005.
* Created promising lead compounds in several early discovery programs
aimed at therapeutically important targets and anticipates advancing
select programs into lead optimization.
Growing Collaborative Research
* Commenced a drug discovery collaboration with Takeda Chemical
Industries, Ltd. to create a series of small molecule drug leads
against a Takeda target. The collaboration includes research funding
to Array, potential development milestone payments and royalties on
the sales of products resulting from the collaboration.
* Received $420,000 and $150,000 in milestone payments from Amgen Inc.
and InterMune, Inc., respectively. Array is entitled to further
payments if additional program milestones are achieved. Under the
InterMune agreement, Array is also entitled to receive royalties on
net sales of products derived from the collaborative efforts.
* Renewed an agreement with Trimeris, Inc. to discover small molecule
entry inhibitors directed against human immunodeficiency virus (HIV).
Trimeris will screen small molecule compounds created by Array against
HIV entry inhibitor targets and Array will be entitled to receive
research funding as well as milestone payments and royalties based on
the success of this program.
Enhancing Corporate Governance
* 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.
Array's expertise in creating drug candidates has resulted in up-front
payments, research funding and significant potential milestones and royalties
from out-license and collaboration agreements. During fiscal 2004, Array
received $16 million in up-front payments, $4.8 million in success-based
milestones and added four royalty-bearing programs. From inception through
June 30, 2004, Array's agreements have generated $18 million in up-front
payments, $5.1 million in milestone payments and recognized $122 million in
research funding revenue. Under its existing agreements, Array has the
potential to earn up to approximately $200 million in additional milestone
payments, as well as royalties on any resulting product sales from 13
different programs.
Revenue for the fiscal year ended June 30, 2004, was $34.8 million,
compared to revenue of $35.1 million for fiscal year 2003. The net loss for
the fiscal year ended June 30, 2004, was $25.5 million, or ($0.89) per share,
compared to a net loss $19.6 million, or ($0.70) per share, reported in fiscal
year 2003. Array achieved positive net cash flow from operations of
$5.6 million, which included $20.8 million from up-front and success-based
milestone payments for the fiscal year ended June 30, 2004.
Array will hold a conference call on Tuesday, August 3, 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, August 3, 2004
Time: 9:00 a.m. eastern time
Toll-Free: (800) 946-0719
Toll: (719) 457-2645
Pass Code: 661325
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 661325. 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 biopharmaceutical company focused on the discovery,
development and commercialization of orally active drugs to address
significant unmet medical needs. Our proprietary drug development pipeline is
primarily focused on the treatment of cancer and inflammatory disease and
includes several small molecule drug candidates that are designed to regulate
targets in therapeutically important biologic pathways. In addition, leading
pharmaceutical and biotechnology companies access our drug discovery
technologies and expertise through collaborations to design, create, optimize
and evaluate 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 that involve
significant risks and uncertainties, including those discussed in our
quarterly report filed on form 10-Q for the quarter ended March 31, 2004, 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, expectations as to the completion, timing and
size of the contemplated offering, 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 for their drug
discovery activities, our ability to out-license our proprietary candidates on
favorable terms, our ability to continue to fund and successfully progress
internal research efforts and to create effective, commercially viable drugs,
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 drug objectives, including
clinical trials, tied to milestones and royalties, and our ability to attract
and retain experienced scientists and management. We are providing this
information as of August 2, 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 Years Ended
June 30, June 30,
2004 2003 2004 2003
(unaudited)
Revenue
Collaboration revenue $6,601 $6,653 $28,186 $33,633
License, royalty and milestone
revenue 3,752 439 6,645 1,492
Total revenue 10,353 7,092 34,831 35,125
Costs and expenses *
Cost of revenue (1) 6,966 4,389 23,042 21,813
Provision for excess inventory -- 4,100 5,616 4,100
Research and development
expenses:
for collaborations (2) 1,475 1,857 8,361 9,038
for proprietary drug discovery 3,620 3,701 15,728 11,176
Selling, general and
administrative expenses (3) 1,979 2,027 7,969 8,859
Total operating expenses 14,040 16,074 60,716 54,986
Loss from operations (3,687) (8,982) (25,885) (19,861)
Interest income 113 129 381 787
Other expense -- unrealized loss on
investment -- (500) -- (500)
Net loss $(3,574) $(9,353) $(25,504) $(19,574)
Basic and diluted net loss per
share $(0.12) $(0.33) $(0.89) $(0.70)
Number of shares used to compute
per share data 28,800 28,115 28,511 27,830
*Includes compensation related to
option grants
(1) Cost of revenue $163 $64 $895 $859
(2) Research and development for
collaborations 108 42 597 572
(3) Selling, general and
administrative expenses 97 50 485 452
Total $368 $156 $1,977 $1,883
Summary Balance Sheet Data
(in thousands)
June 30, June 30,
2004 2003
Cash, cash equivalents and marketable
securities $37,446 $34,130
Inventories, net 4,031 9,065
Property, plant and equipment, gross 57,557 53,939
Working capital 21,634 39,453
Total assets 77,659 83,830
Stockholders' equity 55,525 77,714
SOURCE Array BioPharma Inc.
Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
thaugeto@arraybiopharma.com
http://www.arraybiopharma.com
