BOULDER, Colo., Oct. 31 /PRNewswire-FirstCall/ -- Array BioPharma Inc.
(Nasdaq: ARRY) today reported financial results for the first quarter of
fiscal 2006.
For the first quarter of fiscal 2006, Array reported total revenue of
$11.2 million, compared to revenue of $9.9 million for the same period in
fiscal 2005. Revenue increased primarily due to additional research funding
from Genentech, Inc. and InterMune, Inc. Investment in research and
development for proprietary drug discovery was $8.6 million, an increase of
$4.1 million over the same quarter last year, primarily due to expenses
related to preclinical development. Array also reported a net loss of $9.5
million, or ($0.25) per share, for the first quarter, compared to a net loss
of $5.6 million, or ($0.19) per share, for the same quarter in fiscal 2005.
The reported net loss for the current quarter includes a non-cash charge of
$1.6 million, or ($0.04) per share, which the Company has preliminarily
estimated for stock option compensation under the new accounting rules. Array
ended the first quarter of fiscal 2006 with $83.7 million in cash and
marketable securities.
"During the first quarter, we continued Phase Ib clinical development on
our lead cancer compound, the MEK inhibitor ARRY-142886," said Robert E.
Conway, Chief Executive Officer, Array BioPharma. "We further strengthened
our oncology pipeline and filed an IND with the FDA on our ErbB-2/EGFR dual
inhibitor, ARRY-334543, which is advancing into Phase I clinical development
this fall."
Recent Accomplishments:
Advancing Proprietary Research Programs
* Completed manufacture of clinical material of ARRY-334543, a potent,
orally active, small molecule inhibitor of ErbB-2 and EGFR (dual
inhibitor), for a Phase I clinical trial to begin this fall in cancer
patients.
* Continued evaluating selective ErbB-2 inhibitors in preclinical models
of human cancer.
* Advanced ARRY-142886 (AZD6244), a novel MEK inhibitor for cancer, in a
Phase Ib clinical trial.
* Progressed regulated safety assessment testing for our lead MEK
inhibitor for inflammatory disease, which has demonstrated potency and
tolerability in preclinical models of human arthritis and COPD.
* Advanced our lead p38 inhibitor for inflammatory disease into process
research and development to scale-up material for preclinical regulated
safety assessment.
Growing Collaborative Research
* Extended and expanded a collaboration agreement with Genentech, Inc.
for the discovery of targeted small molecule drugs for the treatment of
cancer. Under the terms of this expanded agreement, Genentech may
provide approximately $50 million in research funding to access Array's
Drug Discovery Platform over the next three years. In addition, Array
will be entitled to receive milestone payments based on the selection
and progression of clinical drug candidates, as well as royalties on
net sales of any products that may result from the collaboration.
Array will hold a conference call on Tuesday, November 1, 2005, 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, November 1, 2005
Time: 9:00 a.m. eastern time
Toll-Free: (800) 500-0177
Toll: (719) 457-2679
Pass Code: 9419226
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 9419226. 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 Inc. is a biopharmaceutical company focused on the
discovery, development and commercialization of targeted small molecule drugs
to treat life threatening and debilitating diseases. Our proprietary drug
development pipeline is focused on the treatment of cancer and inflammatory
disease and includes clinical candidates that are designed to regulate
therapeutically important targets. In addition, leading pharmaceutical and
biotechnology companies collaborate with Array to discover and develop 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 year ended June 30, 2005, 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 in-license drug candidates for their product
pipelines and to collaborate with and fund third parties for their drug
discovery activities, our ability to out-license our proprietary candidates on
favorable terms, our ability to continue to fund and successfully progress
internal research efforts and to create effective, commercially viable drugs,
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 to meet drug objectives, including
clinical trials, tied to milestones and royalties, and our ability to attract
and retain experienced scientists and management. We are providing this
information as of October 31, 2005. 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)
(Unaudited)
Three Months Ended
September 30,
2005 2004
Revenue:
Collaboration revenue $8,284 $7,345
License and milestone revenue 2,958 2,512
Total revenue 11,242 9,857
Operating expenses *
Cost of revenue (1) 9,398 8,793
Research and development for proprietary
drug discovery (2) 8,631 4,482
Selling, general and administrative
expenses (3) 3,294 2,335
Total operating expenses 21,323 15,610
Loss from operations (10,081) (5,753)
Interest expense (129) -
Interest income 684 138
Net loss $(9,526) $(5,615)
Basic and diluted net loss per share $(0.25) $(0.19)
Number of shares used to compute per
share data 38,498 28,907
*Includes stock-based compensation expense
(1) Cost of revenue $533 $113
(2) Research and development for
proprietary drug discovery 419 -
(3) Selling, general and administrative
expenses 648 38
Total $1,600 $151
Summary Balance Sheet Data
(in thousands)
September 30, June 30,
2005 2005
Cash, cash equivalents and marketable
securities $83,706 $92,706
Property, plant and equipment, gross 63,054 61,517
Working capital 72,536 80,435
Total assets 117,976 127,952
Long-term debt 11,327 10,000
Stockholders' equity 91,736 99,415
SOURCE Array BioPharma Inc.
10/31/2005
CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193,
thaugeto@arraybiopharma.com
Web site: http://www.arraybiopharma.com
(ARRY)
