R&D collaboration for Array BioPharma and Celgene

Array BioPharma and Celgene Corporation are collaborating to develop and commcericalise novel therapeutics in cancer and inflammation.

Under the agreement, Celgene will make an upfront payment of $40m to Array, and, in return, Array will grant Celgene an option to select drugs developed under the collaboration that are directed to two of four mutually selected discovery targets. Array will be responsible for all discovery and clinical development through Phase 1 or Phase 2a. At that time, Celgene will have the option to select drugs resulting from up to two of these four therapeutic programmes and will receive exclusive worldwide rights to those drugs, except for Array's limited co-promotional rights in the US.

Array is entitled to receive, for each drug, potential milestone payments of approximately $200m, if certain discovery, development and regulatory milestones are achieved and $300m if certain commercial milestones are achieved, as well as royalties on net sales. Array will retain all rights to the other programmes.

"We are very pleased to collaborate with Celgene on the discovery and development of novel targeted drugs," said Kevin Koch, president and chief scientific officer of Array BioPharma. "With Celgene's global leadership and expertise in discovery, development and commercialisation of innovative therapies, and Array's solid track record of inventing and progressing targeted drugs into clinical development, we are forming a strong alliance to bring new therapies to patients."

"This collaboration with Array BioPharma is a strategic opportunity for Celgene to work with a demonstrated leader in the discovery and early development of small molecule drugs. Our collaboration illustrates Celgene's commitment to address unmet medical need in cancer and immune-inflammatory disease, while maximising our clinical, regulatory and commercial potential worldwide," said Tom Daniel, president of research at Celgene Corporation.