Slumping Array aligns with Biogen on early autoimmune R&D

Array BioPharma ($ARRY) has watched its shares fall steadily earthward since ex-partner Amgen ($AMGN) backed out of a diabetes deal last summer, but a new deal with Big Biotech Biogen Idec ($BIIB) sent the company up about 5% on renewed hopes for its early-stage R&D efforts.

The two companies aren't divulging much detail on their collaboration, saying only that they'll work on discovery and development of inhibitors that target a novel kinase tied to autoimmune disease. The target and lead candidates are products of Array's development platform, the pair said, which uses phenotypic screening to spotlight kinase inhibitors in any therapeutic area.

Under the deal, the two will work together at the discovery stage before Biogen takes over any and all clinical development and commercialization. Biogen is on board to fund three years of R&D and has promised undisclosed milestone payments and commercial royalties to Array if everything works out.

Meanwhile, the Boulder, CO, biotech is moving on from a tough August, in which Amgen pulled the plug on a banner collaboration and, separately, Array let go of 50 workers--20% of its staff--in an effort to pare down its discovery footprint.

Array's plan is to fund more of its operations through tie-ups like the one with Biogen, and the company's most promising assets include the AstraZeneca-partnered selumetinib, in Phase III study for various cancers, and binimetinib, which Novartis ($NVS) is helping through late-stage development in melanoma and ovarian cancer. The company's wholly owned assets include the mid-stage ​multiple myeloma treatment ARRY-520 and the Phase I ARRY-614, which treats myelodysplastic syndromes.

- read the announcement