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1/8/2004

Shares of Array Biopharma rise on news of deal

The Associated Press

NEW YORK — Array Biopharma Inc. shares surged to a new 52-week high Tuesday after the company teamed with a leading gene-based drug company to develop cancer treatments — its second such pact in little more than two weeks.

Shares of Array rose 30 percent, or $1.82, Tuesday as a result of the news. Wednesday, the stock finished at $7.11 a share.

The stock’s previous 52-week high of $6.54 was Sept. 9.

Array’s unexpected agreement with Genentech Inc. follows a Dec. 18 announcement of a development contract with Britain’s AstraZeneca PLC, validating the process the company is using to discover potential small-molecule drugs.

Array, headquartered in Boulder and with a facility in Longmont, uses a discovery process that it says blends chemistry, biology and “informatics” to invent small-molecule drugs that it believes have an advantage over protein-based therapies.

The deal with Genentech, of South San Francisco, Calif., was announced after the bell on Monday.

Array said it signed a licensing and collaboration agreement to advance cancer-treatment programs for clinical development.

Array is to receive an upfront payment and research funding, as well as the potential to receive development milestones and future product royalties.

The collaboration with Genentech “represents Array’s second major agreement from its internal drug discovery pipeline, and we believe that it represents another step in the company’s transformation into a therapeutics company,” Legg Mason analyst John Woolford said.

Woolford added that “substantial additional value remains in the company’s internal pipeline,” which contains a series of programs focused on the treatment of cancer and inflammation.