BOULDER, Colo.--(BUSINESS WIRE)-- Array BioPharma Inc. (NASDAQ: ARRY) today reported financial results for the fourth quarter and full year of fiscal 2010.
Array reported revenue of $18.0 million for the fourth quarter of fiscal 2010, compared to revenue of $5.5 million for the same period in fiscal 2009. Array spent $16.5 million in proprietary research and development for the quarter to advance its clinical development and discovery programs. This compares to $21.3 million spent in research and development during the fourth quarter of fiscal 2009. Array reported a net loss of $15.8 million, or ($0.30) per share, for the fourth quarter, compared to a net loss of $26.7 million, or ($0.55) per share, for the fourth quarter in fiscal 2009. Array ended the fourth quarter of fiscal 2010 with $129 million in cash, cash equivalents and marketable securities.
Array reported revenue of $53.9 million for the fiscal year ended June 30, 2010, compared to revenue of $25.0 million for fiscal 2009. Net loss for the fiscal year ended June 30, 2010, was $77.6 million, or ($1.55) per share, compared to a net loss of $127.8 million, or ($2.67) per share, reported in fiscal 2009. Array spent $72.5 million in proprietary research and development for the year, compared to $89.6 million for fiscal 2009.
“During fiscal 2010, we raised $110 million in non-dilutive up-front and milestone payments from our partners, largely from our deals with Novartis and Amgen,” said Robert E. Conway, Chief Executive Officer. “We now have nine partnered drugs in clinical development and three significant discovery collaborations, with potential upside of $2.7 billion in milestone payments and double digit royalties on multiple programs. With $129 million in cash and marketable securities, plus projected milestone payments from our partners, we are well positioned to advance our pipeline of 100% Array owned drugs.”
SUMMARY OF RECENT PROGRESS
Advancing MEK oncology programs
Array allies with Novartis in cancer – MEK162 (ARRY-162) – MEK inhibitor:
AstraZeneca presents promising data at 2010 ASCO
AstraZeneca is conducting the following Phase 2 trials:
Partnerships advance with Amgen, Genentech, Celgene and InterMune:
Amgen collaboration AMG 151 / ARRY-403 – GK activator for type 2 diabetes: Array continued a Phase 1 multiple ascending dose clinical trial in patients with type 2 diabetes, with AMG 151 / ARRY-403, a small-molecule glucokinase activator that Array partnered with Amgen Inc. in December 2009. After the trial is complete, Amgen will be responsible for all future development. Array also continued a research program, which is being funded by Amgen, to identify and advance second-generation glucokinase activators.
Celgene Research Programs - cFMS, TYK2, PDGFR: Celgene announced progress on three partnered research programs in April 2010 on which Array is conducting research: cFMS (oncology), TYK2 (inflammation) and PDGFR (fibrosis). Celgene reported that all three programs have the possibility of entering clinical development over the next 12 to 24 months. Under the terms of Array’s agreement with Celgene, Celgene has the option to select two of the programs and Array would retain rights to the third program.
Genentech collaboration: Genentech announced that GDC-0068 / RG7440, an AKT inhibitor discovered by Array and Genentech scientists, advanced into a Phase 1 dose escalation study in cancer patients.
InterMune announces positive danoprevir (RG7227 and ITMN-191) results: InterMune, Inc. announced in April 2010 top-line results from a planned interim analysis of the Phase 2b randomized, partially-blind study evaluating the hepatitis C virus NS3/4A protease inhibitor danoprevir, also known as RG7227 / ITMN-191, which was coinvented by Array and InterMune. Danoprevir was administered at either 300 mg three times daily, 600 mg twice daily or 900 mg twice daily for 12 weeks in combination with PEGASYS® (pegylated interferon alfa-2a) and COPEGUS® (ribavirin), compared with placebo for the same duration plus PEGASYS and COPEGUS. In November 2009, InterMune reported that due to a safety signal, dosing in the 900 mg group had been stopped. InterMune reported that results from the study indicate danoprevir plus PEGASYS and COPEGUS are capable of achieving complete early virologic response rates as high as 90 percent, compared to 43 percent in the placebo group.
Array advanced all four clinical programs for the treatment of cancer according to plan: ARRY-520 – KSP inhibitor for MM: Array completed enrollment in a Phase 1 trial with ARRY-520, a novel KSP inhibitor, in patients with solid tumors and in a Phase 1/2 trial in patients with acute myelogenous leukemia. We are initiating two Phase 1b combination studies in patients with MM.
ARRY-614 - p38/Tie-2 Inhibitor for MDS: Array continued dosing patients with myelodysplastic syndrome in a Phase 1 trial of ARRY-614 to determine the safety, maximum tolerated dose, pharmacokinetics and to obtain preliminary efficacy data of the compound in this patient population.
ARRY-543 – HER2/EGFR inhibitor for solid tumors: Array completed enrollment in three Phase 1b trials of ARRY-543 in combination with Xeloda® (capecitabine), Taxotere and Gemzar® (gemcitabine), respectively. The maximum tolerated dose of ARRY-543 was achieved in each trial the prior quarter. Trial results will be disclosed at an appropriate scientific conference over the next year.
ARRY-380 – HER2 oral, selective inhibitor for cancer: Array reached the maximum tolerated dose in a Phase 1 trial of ARRY-380 to evaluate the safety, maximum tolerated dose and pharmacokinetics in patients with advanced cancer. Array is expanding the trial at the maximum tolerated dose in patients with HER2 positive cancer.
Financial Performance – Fiscal 2010 Compared to Fiscal 2009:
Array will hold a conference call on Tuesday, August 10, 2010, at 9:00 a.m. Eastern Time to discuss these results. Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.
Conference Call Information
|Tuesday, August 10, 2010|
|9:00 a.m. Eastern Time|
A replay of the call will be available as a webcast on www.arraybiopharma.com and by phone for one week by dialing toll-free (888) 203-1112 or (719) 457-0820. The access code is 6859246.
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.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our potential to earn future milestone and royalty payments under our collaboration agreements, the estimated net present value of this potential income, the potential for the results of ongoing preclinical and clinical trials to support regulatory approval or the marketing success of a drug candidate, our ability to partner our proprietary drug candidates for up front fees, milestone and/or royalty payments, and our future plans to progress, develop our proprietary programs and the plans of our collaborators to progress and develop programs we have licensed to them. These statements involve significant risks and uncertainties, including those discussed in our most recent annual report filed on form 10-K, in our quarterly reports filed on Form 10-Q, 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 and development efforts and to create effective, commercially viable drugs; our ability to effectively and timely conduct clinical trials in light of increasing costs and difficulties in locating appropriate trial sites and in enrolling patients who meet the criteria for certain clinical trials; risks associated with our dependence on third-party service providers to successfully conduct clinical trials within and outside the United States; our ability to achieve and maintain profitability and maintain sufficient cash resources; 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 BioPharma Inc. to meet objectives tied to milestones and royalties; our ability to attract and retain experienced scientists and management. We are providing this information as of August 9, 2010. 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 Statements of Operations
(in thousands, except per share amounts)
|Three Months Ended June 30,||Year Ended June 30,|
|License and milestone revenue||11,449||1,706||32,485||7,754|
|Cost of revenue||9,218||4,157||28,322||19,855|
Research and development for proprietary drug discovery
|General and administrative||4,183||4,587||17,121||18,020|
|Total operating expenses||29,892||30,057||117,931||127,435|
|Loss from operations||(11,922||)||(24,550||)||(64,051||)||(102,453||)|
|Other income (expense)|
|Gain (loss) on marketable securities||-||-||1,305||(17,742||)|
|Total other income||(3,924||)||(2,440||)||(13,580||)||(25,650||)|
|Loss before income tax benefit||(15,846||)||(26,990||)||(77,631||)||(128,103||)|
|Income tax benefit||-||288||-||288|
Weighted average shares outstanding - basic and diluted
|Net loss per share - basic and diluted||$||(0.30||)||$||(0.55||)||$||(1.55||)||$||(2.67||)|
|Summary Balance Sheet Data
|June 30,||June 30,|
|Cash, cash equivalents and marketable securities||$||128,869||$||57,488|
|Property, plant and equipment, gross||$||84,176||$||83,683|
|Long-term debt, net||$||112,825||$||68,170|
Array BioPharma Inc.
Tricia Haugeto, 303-386-1193
KEYWORDS: United States North America Colorado
INDUSTRY KEYWORDS: Health Biotechnology Clinical Trials Oncology Pharmaceutical