Array Q3 results
Array BioPharma has reported total revenue of $9.7m for its third quarter compared with $8.0m during the same period in fiscal 2003. Revenue increased due to recognising a portion of the up front payments from the out-licensing agreements initiated in December 2003 with AstraZeneca and Genentech. Net loss was $9.7m for the third quarter, which includes a $5.6m non-cash charge to reduce the carrying value of our chemical compound inventories. For the comparable quarter in fiscal 2003, Array had a net loss of $6.1m. Array ended the third quarter of fiscal 2004 with $37.1m in cash and marketable securities. 'During the quarter, Array received clearance from the FDA to initiate a Phase I clinical trial for our lead cancer compound, ARRY-142886,' said Robert Conway, chief executive officer, Array BioPharma. 'We expect ARRY-142886 to enter Phase I prior to the end of our fiscal year, demonstrating our ability to rapidly advance high quality clinical candidates. We are continuing to build a strong pipeline of orally active drug candidates focused on cancer and inflammatory disease.'
During the third quarter of fiscal 2004 Array received clearance from the FDA to initiate a Phase I clinical trial for ARRY-142886 (AZD6244), a novel MEK inhibitor discovered by Array and out-licensed to AstraZeneca. It also progressed the development of additional proprietary programs aimed at four targets, EGFR/ErbB-2 (dual inhibitor program), ErbB-2, p38 and MEK (inflammation), which are in preclinical testing, for oncology and inflammation indications. Given satisfactory results, Array anticipates nominating a clinical candidate and initiating GLP toxicology testing from one or more of these programs during 2004.
'We were pleased to meet the consensus estimates for revenue from operations for the third quarter,' said Michael Carruthers, chief financial officer, Array BioPharma. 'Today, two-thirds of Array's scientific resources are devoted to our proprietary research and staffing out-licensing deals and we expect to continue our evolution to a drug discovery company. Primarily as a result of this shift, we elected to write down the value of our inventories by increasing the reserves for our Lead Generation Library and Optimer building block compounds.'