BOULDER, Colo., Feb. 6 /PRNewswire-FirstCall/ -- Array BioPharma Inc.
(Nasdaq: ARRY) today reported financial results for the second quarter of
fiscal 2006.
For the second quarter of fiscal 2006, Array reported revenue of
$11.9 million, compared to revenue of $12.0 million for the same period in
fiscal 2005. Investment in research and development for proprietary drug
discovery was $7.8 million, a $2.5 million increase over the same quarter last
year, due to additional preclinical and clinical development. Array reported
a net loss of $8.7 million, or ($0.23) per share, for the second quarter,
compared to a net loss of $4.9 million, or ($0.16) per share, for the same
quarter in fiscal 2005. The reported net loss for the current quarter includes
a non-cash charge of $1.7 million, or ($0.04) per share, for share-based
compensation expense under the new accounting pronouncement, FASB Statement
No. 123(R). Array ended the second quarter of fiscal 2006 with $77.7 million
in cash and marketable securities.
"We further strengthened our oncology pipeline and initiated dosing cancer
patients in Phase I trial for our ErbB-2/EGFR dual inhibitor, ARRY-334543,"
said Robert E. Conway, Chief Executive Officer, Array BioPharma. "ARRY-334543
is our second targeted cancer agent resulting from our internal drug discovery
program. We anticipate additional drugs entering clinical development in
2006, furthering our goal of building the industry's leading clinical pipeline
of small molecule drugs."
Second Quarter and Subsequent Accomplishments:
Advancing Proprietary Research Programs
* Continued enrolling cancer patients in Array's Phase Ib clinical trial
of ARRY-142886 (AZD6244), a novel MEK inhibitor.
* Initiated dosing cancer patients in a Phase I clinical trial for
ARRY-334543, an oral, selective, reversible, small molecule tyrosine
kinase inhibitor of both ErbB-2 (Her-2/neu) and EGFR.
* Completed regulated safety testing for our lead MEK inhibitor for
inflammatory disease, which has demonstrated potency and tolerability
in preclinical models of human arthritis and COPD. An IND application
is being prepared for submission to the FDA.
* Advanced Array's lead orally active, small molecule p38 inhibitor into
regulated safety testing. The candidate is well tolerated and has
demonstrated efficacy in preclinical models of human arthritis.
Growing Collaborative Research
* Selected an additional clinical candidate for the small molecule
anticancer MEK program with AstraZeneca AB, triggering a $1 million
milestone payment from AstraZeneca to Array.
* Initiated a drug discovery collaboration with Ono Pharmaceutical Co.,
Ltd. to create small molecule drug candidates against a series of
kinases selected by Ono. Ono will provide funding to access Array's
Drug Discovery Platform. Array will be entitled to receive milestone
payments based on the selection and progression of clinical drug
candidates. In addition Array will be entitled to receive royalties on
sales of any products that result from the collaboration.
* Extended and expanded a collaboration agreement with Genentech, Inc.
for the discovery of targeted small molecule drugs for the treatment of
cancer. Under the terms of this expanded agreement, Genentech may
provide approximately $50 million in research funding to access Array's
Drug Discovery Platform over the next three years. In addition, Array
will be entitled to receive milestone payments based on the selection
and progression of clinical drug candidates, as well as royalties on
net sales of any products that result from the collaboration.
Array reported revenue of $23.2 million for the six-month period ended
December 31, 2005, compared to revenue of $21.9 million for the same period
in fiscal 2005. Net loss for the six months ended December 31, 2005, was
$18.4 million, or ($0.48) per share, compared to a net loss of $10.5 million,
or ($0.35) per share, reported in the same period in fiscal 2005. The
reported net loss for the six-month period includes a non-cash charge of
$3.4 million, or ($0.09) per share, for share-based compensation expense under
the new accounting pronouncement, FASB Statement No. 123(R).
Array will hold a conference call on Tuesday, February 7, 2006, 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, February 7, 2006
Time: 9:00 a.m. eastern time
Toll-Free: (800) 946-0712
Toll: (719) 457-2641
Pass Code: 8545301
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 8545301. 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 Inc. is a biopharmaceutical company focused on the
discovery, development and commercialization of targeted small molecule drugs
to treat life threatening and debilitating diseases. Our proprietary drug
development pipeline is focused on the treatment of cancer and inflammatory
disease and includes clinical candidates that are designed to regulate
therapeutically important targets. 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.
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 year ended June 30, 2005, 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 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 February 6, 2006. 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 Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenue:
Collaboration revenue $9,232 $9,548 $17,515 $16,893
License and milestone revenue 2,708 2,500 5,667 5,012
Total revenue 11,940 12,048 23,182 21,905
Operating expenses *
Cost of revenue(1) 10,013 9,464 19,403 18,257
Research and development for
proprietary drug discovery(2) 7,802 5,312 16,427 9,794
Selling, general and
administrative expenses(3) 3,379 2,341 6,833 4,676
Total operating expenses 21,194 17,117 42,663 32,727
Loss from operations (9,254) (5,069) (19,481) (10,822)
Interest expense (153) -- (282) --
Interest income 696 192 1,380 330
Net loss $(8,711) $(4,877) $(18,383) $(10,492)
Basic and diluted net loss
per share
$(0.23) $(0.16) $(0.48) $(0.35)
Number of shares used to
compute per share data 38,617 30,706 38,557 29,807
* Includes stock-based
compensation expense
(1) Cost of revenue $546 $-- $1,071 $113
(2) Research and development
for proprietary drug
discovery 320 -- 733 --
(3) Selling, general and
administrative expenses 799 -- 1,607 38
Total $1,665 $-- $3,411 $151
Summary Balance Sheet Data
(in thousands)
December 31, June 30,
2005 2005
Cash, cash equivalents and marketable securities $77,664 $92,706
Property, plant and equipment, gross 63,719 61,517
Working capital 70,373 80,435
Total assets 112,132 127,952
Long-term debt 12,553 10,000
Stockholders' equity 85,040 99,415
SOURCE Array BioPharma Inc.
02/06/2006
CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
thaugeto@arraybiopharma.com
Web site: http://www.arraybiopharma.com
(ARRY)
