BOULDER, Colo.--(BUSINESS WIRE)--May. 19, 2009--
Array BioPharma Inc. (NASDAQ:ARRY) today announced that it has received
an additional $40 million funding commitment from Deerfield Management,
a leading healthcare investment organization and one of Array’s largest
shareholders. This funding commitment is in addition to the $80 million
Array previously received from Deerfield in 2008. Together with existing
capital, these funds will be available to advance Array’s deep pipeline
of wholly owned small molecule drug programs in development.
“We are delighted to expand our relationship with Deerfield through
securing this additional $40 million funding commitment from one of the
industry’s leading healthcare investors,” said Robert E. Conway, Chief
Executive Officer. “These additional funds will allow us to aggressively
advance our development pipeline and enhances our position in ongoing
partnering discussions.”
In connection with Array’s right to draw the additional funds, Deerfield
will receive a transaction fee of $500,000 and Array has exchanged
warrants to purchase six million shares of Array’s common stock
previously issued to Deerfield in connection with the prior facility at
an exercise price of $7.54 per share for warrants to purchase six
million shares of its common stock at an exercise price of $3.65 per
share. In addition, as part of the new agreement, the amount of Cash,
Cash Equivalents and Marketable Securities Array is required to maintain
under both facilities was reduced from $40 million to $20 million.
Should Array elect to draw down the additional $40 million, the interest
rate on the outstanding $80 million principal will decrease from 8.5
percent to 7.5 percent annually and the new interest rate will also
apply to the additional funds. All interest will be paid monthly in cash
or stock at Array’s option. If Array’s Cash, Cash Equivalents and
Marketable Securities, including amounts available under the new
facility, fall below $60 million, higher interest rates will apply to
both facilities. With the incremental $40 million draw, the Company will
issue six million additional warrants and pay an additional $500,000 in
fees. The additional warrants will have an exercise price equal to the
greater of $3.13 or 120 percent of the volume weighted average stock
price over the 15-day period prior to issuance. These warrants contain
substantially identical terms as the previously issued warrants and will
be exercisable six months from the date the funds are drawn down under
the new facility. Array can draw down the additional $40 million at any
time between June 29, 2009 and September 30, 2009 upon 15 days’ prior
notice.
Amounts equal to 15 percent of milestone and upfront payments received
by Array under partnering agreements signed after January 1, 2011 will
be allocated to principal repayments on the incremental $40 million.
The warrants expire and the original and new loans mature on April 29,
2014. Prepayment of principal may be made at the Company's option with
shares of common stock, subject to certain restrictions, or in cash.
About Array BioPharma
Array BioPharma Inc. is a biopharmaceutical company focused on the
discovery, development and commercialization of targeted small molecule
drugs to treat patients afflicted with cancer, inflammatory and
metabolic diseases. Our proprietary drug development pipeline includes
clinical candidates that are designed to regulate therapeutically
important target proteins and are aimed at significant unmet medical
needs. 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,
including statements about our future plans for advancing and our
ability to fund certain of our proprietary drug programs and our
obligations under the prior Facility Agreement and the new Facility
Agreement with Deerfield. These statements involve significant risks and
uncertainties, including those discussed in our annual report filed on
form 10-K for the year ended June 30, 2008, 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 continue to fund
and successfully progress internal research efforts and to create
effective, commercially viable drugs, 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
on their drug discovery activities, our ability to out-license our
proprietary candidates on favorable terms, 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 objectives tied to milestones and
royalties, and our ability to attract and retain experienced scientists
and management. We are providing this information as of May 19, 2009. 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.
Source: Array BioPharma Inc.
Array BioPharma Inc.
Tricia Haugeto, 303-386-1193
thaugeto@arraybiopharma.com
