Biotech Values

[mcbio]

ARRY - 1Q13 CC notes

1. ARRY is seeing disease modification in OA for cartilage and bone degradation with ARRY-797, on top of the pain relief. ARRY believes this disease modification on top of pain relief from 797 is unprecedented. ARRY guided for a 797 partner for 1H13.

2. For ARRY-520, ASH abstracts will be out next Monday and the 520 abstract, if accepted, should show the biomarker they have identified that can predict patient response. The idea is that with a biomarker in hand they can select only the patients for future trials that will respond to 520 (which would hopefully enhance chances for success). The biomarker is a relatively common biomarker and won't require a new test to be created and approved.

3. Despite not being mentioned in the results PR, ARRY mentioned AMG151 in the CC and the drug appears to be on track with mention of expectation of completion of enrollment in the P2 trial being run by AMGN.

4. Regarding discussion of the MEK indications of most interest to NVS with MEK162, the combo with the NVS BRAF inhibitor LGX818 was identified. Despite being behind in the BRAF space, it was mentioned that it appears that NVS believes they have a best-in-class BRAF inhibitor. It was also noted that the MEK162 combos with various NVS PI3K inhibitors continue to be of great interest.

5. Regarding the recent deal that CELG inked with the private VentiRX (#msg-80159597 ) for VTX-2337, ARRY is ultimately entitled to royalties on this drug and has an ownership interest in VentiRx.