Aligning Resources with Clinical Programs
BOULDER, Colo.--(BUSINESS WIRE)--Array BioPharma Inc. (NASDAQ: ARRY) today announced a restructuring to extend its financial resources and to focus on the development of its key clinical programs. The Company intends to aggressively advance ARRY-520, a KSP inhibitor for multiple myeloma, ARRY-614, a p38 / Tie-2 inhibitor for myelodysplastic syndrome and MEK162, a MEK inhibitor for cancer in co-development with Novartis. Additionally, Array retains a fully integrated research and development organization, and will continue to advance select new compounds into development.
The restructuring announced today will result in a reduction of Array's staff by approximately 20 percent, or 70 employees. These reductions were primarily in discovery research and support positions, which will provide a more appropriate balance between the discovery and development groups. Array retains a smaller, yet fully capable discovery research organization focused on advancing our partnered programs with Amgen, Celgene and Genentech as well as select wholly owned late-stage discovery programs.
"It is extremely difficult to release these outstanding people who have contributed substantially to the Company over the years, but these actions are necessary given our need to focus resources on our key clinical development programs," said Robert E. Conway, Chief Executive Officer. "We look forward to a number of potential value-creating events during the second half of 2011 including Phase 2 combination data on selumetinib in patients with melanoma or non-small cell lung cancer; Phase 2 data on ARRY-520 in multiple myeloma patients and Phase 1 data on ARRY-614 in MDS patients."
The Company's financial outlook is improved as a result of these actions. During Fiscal 2012, Array expects to reduce its annual net cash used in operating activities by approximately $20 million, compared with fiscal 2011. For Fiscal 2012, the Company anticipates using approximately $40 million for operating activities, which includes milestones received from existing collaborations. This does not include any potential up-front or milestone payments from new collaborations. Array has a number of programs outside of its key clinical programs which can be partnered. The Company will record a one-time restructuring charge in the fourth quarter of fiscal 2011, currently estimated to be $3.5 million, associated with the payment of one-time termination benefits that the Company expects to pay out in cash during the fourth quarter of fiscal 2011 and first quarter of fiscal 2012. Array had $76 million in cash, cash equivalents and marketable securities as of March 31, 2011. The Company also received a $10 million Phase 2 milestone payment from Novartis for the MEK162 program during the current quarter.
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 and inflammatory 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. For more information on Array, please go to www.arraybiopharma.com.