The Burrill Report


Array BioPharma cut about 20 percent of its workforce as the company contends with growing losses and Amgen’s decision terminate a diabetes drug partnership with the company.

Most of the job cuts will be made in Array’s drug discovery organization, but the company says it is continuing to pursue its strategy to fund discovery operations through strategic collaborations with a focus on developing and commercializing its hematology and oncology programs.

Array has realized $68.5 million of the 2009 partnership’s potential $726 million payout, including $60 million upfront and $8.5 million in milestones. Now it will regain rights it had licensed to Amgen for the small molecule glucokinase activator program, ARRY-403/AMG 151, and await results of a mid-stage trial of the drug to be reported in the future.

Array’s net loss for the fiscal year ending June 30 grew to 47 cents per share in 2013 compared to 33 cents per share in 2012. That’s before a noncash charge of $11.2 million resulting from the early payoff of debt in fiscal 2013. The company’s research and development expenses held steady at $59.4 million for 2013, compared to $56.7 million for 2012.

Array had already decided to conduct early-stage R&D through strategic collaborations and so far this year has entered into deals with Celgene, Clovis Oncology, Loxo Oncology, and Global Blood Therapeutics to fund its early stage research programs. It also partnered with Oncothyreon to advance its oral selective HER2 inhibitor, ARRY-380, into multiple clinical proof-of-concept studies.

The company plans to report promising interim data on its hematology compound, ARRY-520, in separate combination trials with two already approved therapies.



August 08, 2013
http://www.burrillreport.com/article-array_cuts_20_percent_of_workforce_.html