BOULDER, Colo., Feb 2, 2004 /PRNewswire-FirstCall via COMTEX/ -- Array BioPharma Inc.
(Nasdaq: ARRY) today reported financial results for the second quarter of
fiscal 2004, ended December 31, 2003.
During the second quarter of fiscal 2004, Array reported total revenue of
$7.6 million, compared to $9.5 million during the same period in fiscal 2003.
Net loss was $6.3 million, or ($0.22) per share, for the second quarter,
compared to a net loss of $2.9 million, or ($0.10) per share, for the
comparable quarter in fiscal 2003. Array ended the second quarter of fiscal
2004 with $34.9 million in cash and marketable securities, an increase of
$6.0 million during the quarter. In addition, the quarter ending accounts
receivable balance was $7.7 million, an increase of $5.0 million over the
prior quarter. The increase in cash and accounts receivable is due to the
recently announced AstraZeneca and Genentech collaborations. Subsequent
collections of accounts receivable have provided Array a cash balance of
approximately $40 million as of January 31, 2004.
"During the quarter, Array signed two significant agreements to
out-license and co-develop cancer drugs discovered by Array," said Robert E.
Conway, Chief Executive Officer, Array BioPharma. "We believe AstraZeneca and
Genentech, two world leaders in oncology, are ideal partners to bring our
proprietary products to cancer patients. These deals highlight Array's
strength in creating valuable orally-active drugs against therapeutically
novel targets."
During the second quarter of fiscal 2004 Array:
- Signed a licensing and collaboration agreement with AstraZeneca to
develop Array's MEK program in the field of oncology. The program
includes the clinical development candidate, ARRY-142886, and related
intellectual property. Under the agreement, Array received an
upfront payment of $10 million, will receive research funding, with
potential development milestones of over $85 million and royalties on
product sales. AstraZeneca acquired exclusive worldwide rights to
ARRY-142886 and certain second-generation compounds for all oncology
indications.
- Initiated a licensing and collaboration agreement with Genentech,
Inc. for multiple targets in the field of oncology. As part of this
agreement, Array and Genentech formed a research collaboration to
advance two of Array's proprietary oncology programs into clinical
development. These programs include small molecule leads developed
by Array along with related intellectual property. Under the
agreement, Array received an upfront payment and will receive
research funding, with potential development milestones and royalties
on product sales.
- Increased investment in Array's proprietary research to $4.6 million
for the current quarter, compared to $2.4 million for the same period
last fiscal year, and achieved the following:
- Finished GLP toxicology testing of ARRY-142886, completing the
non-clinical safety assessment required for the FDA's
Investigational New Drug (IND) application.
- Progressed development of additional proprietary programs, aimed
at three targets, ErbB-2, EGFR/ErbB-2 and p38, which are in
preclinical testing, for oncology and inflammation indications.
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 additional
programs into lead optimization in 2004.
- Established a clinical regulatory group with expertise to support
Array's proprietary drug programs and interface with the FDA.
Array has established itself as a premier drug discovery company,
efficiently creating valuable intellectual property. Since the Company's
inception, Array has invested $29 million in proprietary research, yielding
three out-licensing agreements with major pharmaceutical and top biotech
companies, plus a valuable pipeline of internal drug discovery programs.
Under these three agreements, Array is entitled to:
- Upfront cash of $18 million;
- Total potential milestones of $147 million;
- Research funding for approximately 50 scientists during 2004; and
- Potential royalties on product sales for two of the three agreements.
"We believe our investment in proprietary research is proving to be one of
the most productive uses of capital in the biotech industry and advances Array
towards its goal of being the most efficient creator of high quality drug
candidates," said Mr. Conway.
Array will hold a conference call on Tuesday, February 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, February 3, 2004
Time: 9:00 a.m. eastern time
Toll-Free: (888) 857-6932
Toll: (719) 457-2604
Pass Code: 287151
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 287151. 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 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 .
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, 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 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 February 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 Six Months Ended
December 31, December 31,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenue $7,595 $9,502 $14,790 $20,006
Cost of revenue* 5,010 5,670 10,031 11,670
Research and development
expenses:
for collaborations* 2,220 2,344 4,451 4,182
for proprietary drug discovery 4,565 2,411 8,597 4,461
Selling, general and
administrative expenses* 2,138 2,201 4,078 4,287
Total operating expenses 13,933 12,626 27,157 24,600
Loss from operations (6,338) (3,124) (12,367) (4,594)
Interest income 77 230 169 486
Net loss $(6,261) $(2,894) $(12,198) $(4,108)
Basic and diluted net loss
per share $(0.22) $(0.10) $(0.43) $(0.15)
Number of shares used to
compute per share data 28,388 27,720 28,324 27,639
*Includes compensation related
to option grants
Cost of revenue $246 $265 $492 $530
Research and development for
collaborations 164 177 328 354
Selling, general and
administrative expenses 129 134 258 268
Total $539 $576 $1,078 $1,152
Summary Balance Sheet Data
(in thousands)
December 31, June 30,
2003 2003
(unaudited)
Cash, cash equivalents and marketable securities $34,905 $34,130
Property, plant and equipment, gross 54,892 53,939
Working capital 31,841 39,453
Total assets 87,747 83,830
Stockholders' equity 67,038 77,714
SOURCE Array BioPharma Inc.
Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
thaugeto@arraybiopharma.com
http://www.arraybiopharma.com
