BOULDER, Colo., May 5 /PRNewswire-FirstCall/ --
Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the
third quarter of fiscal 2003, ended March 31, 2003.
During the third quarter of fiscal 2003, Array reported total revenue of
$8.0 million, down 16% from $9.5 million during the same period in fiscal
2002. Net loss was $6.1 million, or ($0.22) per share for the third quarter,
compared to a net loss of $864,000 or ($0.03) per share for the comparable
quarter in fiscal 2002. The loss in the current quarter includes a
restructuring charge of approximately $600,000. Array ended the third quarter
of fiscal 2003 with $41.0 million in cash and marketable securities.
"These results are in line with our adjusted financial guidance for the
quarter," said Robert E. Conway, Chief Executive Officer. "We are excited
about moving our lead proprietary MEK program into preclinical safety
assessment testing this summer, demonstrating the power of the Array Discovery
Platform. This same Platform has been successful in filling product pipelines
for our pharmaceutical and biotech collaborators."
Highlights during the third quarter of fiscal 2003 include:
- Increased investment in Array's proprietary research to $3.0 million
for the current quarter, compared to $1.6 million for the same period
in the last fiscal year.
- Continued progress with MEK, Array's most advanced proprietary
drug program. Array is producing bulk material in its cGMP
facility for preclinical safety assessment, to begin this summer,
and Phase I clinical testing.
- Advanced development on two other proprietary programs, which are
in early preclinical testing, for oncology and inflammation
indications.
- Continued progress on several other proprietary programs that are
in lead generation and advancement is expected on several into
lead optimization in fiscal 2004.
- Expanded capabilities in drug metabolism, pharmacology and toxicology.
Array hired Patrice Lee, Ph.D., with 15 years of industry experience,
to lead, staff and operate its new pharmacology facility and
pharmacology/toxicology program.
- Reduced internal cost structure and future spending, providing Array
with approximately four years of projected cash based on current
estimates.
- Added professional staff to Array's business development department.
Array also reported revenue for the nine-month period ended March 31,
2003, of $28.0 million, an increase of 12% compared to revenues of $25.1
million for the same period in fiscal 2002. Net loss for the nine months
ended March 31, 2003, was $10.2 million, or ($0.37) per share, compared to a
net loss of $3.6 million, or ($0.15) per share per share, reported in the same
period in fiscal 2002.
Array will hold a conference call on Tuesday, May 6, 2003, at 9:00 a.m.
eastern time to discuss these results and Array's earnings guidance for the
remainder of fiscal 2003 and 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, May 6, 2003
Time: 9:00 a.m. eastern time
Toll-Free: (800) 289-0730
Toll: (913) 981-5509
Pass Code: 734913
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 734913. 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 use an integrated set of drug discovery technologies,
which we call the Array Discovery Platform, to invent small molecule drugs in
collaboration with leading pharmaceutical and biotechnology companies and to
build 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, 2002, 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
our ability to attract and retain experienced scientists and management. We
are providing this information as of May 5, 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 Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenue $8,027 $9,504 $28,033 $25,054
Cost of revenue* 5,489 4,984 16,629 13,979
Gross profit 2,538 4,520 11,404 11,075
Research and development
for collaborations* 2,823 1,905 6,651 5,470
Research and development
for proprietary
drug discovery* 3,014 1,578 7,475 3,700
Selling, general
and administrative
expenses* 2,411 1,589 6,430 4,696
Compensation related
to stock option grants 575 589 1,727 1,933
Total operating
expenses 8,823 5,661 22,283 15,799
Loss from
operations (6,285) (1,141) (10,879) (4,724)
Interest income 172 277 658 1,089
Net loss $(6,113) $(864) $(10,221) $(3,635)
Basic and diluted
net loss per share $(0.22) $(0.03) $(0.37) $(0.15)
Number of shares
used to compute
per share data 27,930 25,438 27,735 24,092
*Excludes compensation related to option grants
Summary Balance Sheet Data
(in thousands)
March 31, June 30,
2003 2002
(unaudited)
Cash, cash
equivalents and
marketable
securities $41,009 $59,598
Property, plant
and equipment, net 39,566 35,788
Working capital 46,307 57,350
Total assets 95,697 107,915
Stockholders' equity 86,743 93,901
SOURCE Array BioPharma Inc.
-0- 05/05/2003
/CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
thaugeto@arraybiopharma.com/
/Web site: http://www.arraybiopharma.com /
(ARRY)
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