Biotech Values

[ThomasS]

ARRY: Array BioPharma Accelerates Partnering Activities and Scales Back Discovery Research to Extend Available Capital
{My bolded portion below is what I alluded to before in a prior musing.}

http://biz.yahoo.com/bw/090109/20090109005096.html?.v=1

BOULDER, Colo.--(BUSINESS WIRE)--Array BioPharma Inc. (NASDAQ: ARRY - News) today announced plans to accelerate partnering initiatives and scale back discovery research spending over the next 24 months to help ensure sustainable growth through the current uncertain capital market conditions. During 2009, Array expects to reduce net cash used in operating activities from a planned approximately $30 million per quarter to approximately $20 million per quarter, before new partner or milestone payments. Array had $101 million in cash, cash equivalents and marketable securities on September 30, 2008 and received an additional $40 million in cash in December 2008 when Deerfield Capital funded the second draw under its credit facility with Array.

“We are putting in place multiple measures to allow our most promising programs in cancer, inflammation and diabetes to rapidly advance in clinical development,” said Robert E. Conway, Chief Executive Officer. “It is important to conserve our cash resources during these difficult times for the financial markets and focus our efforts on advancing our clinical programs through proof-of-concept to maximize their value.”

Partnering Initiatives: To obtain capital outside the financial markets, Array plans to accelerate partnering certain clinical development and preclinical programs. The company believes that it can secure approximately $80 million through new partnering deals and milestone payments from existing collaborations over the next 12 months.

R&D Optimization Program: Array plans to focus clinical development resources on obtaining “partnerable” proof-of-concept data to support out-licensing and partnering activities. In addition, Array will scale back its discovery and early research activities to the three most promising internal programs. Array intends to continue to advance eight 100%-owned clinical development programs, and it anticipates generating proof-of-concept data on several programs in 2009 which it believes will create multiple partnering opportunities.

Operational Changes: Array recently reduced its workforce by approximately 40 employees, representing 10% of the total Array workforce, as part of its efforts to conserve capital and focus its resources on its most advanced programs. These reductions were primarily in discovery research and support positions.