Biotech Values

[mcbio]

ARRY @ Jefferies

http://investor.arraybiopharma.com/phoenix.zhtml?c=123810&p=irol-news

A couple of notes from the webcast:

1. This was actually noted in a prior webcast, but ARRY indicated that AZN has improved upon the prior mix-and-drink formulation of AZD6244 (MEK inhibitor) and now gets twice as much drug exposure with the new formulation. Also, there was apparently a complete response in a BRAF positive melanoma patient in an ongoing Phase 2 trial.

2. ARRY talked about the funding deal with Deerfield. The company has drawn down $80 million so far and could eventually draw down another $40 million. The debt isn't due until 2014 and can be repaid in either stock or cash at any time. The president noted that the company hopes to repay the debt in 3 years or so with stock that is much higher (i.e., hopefully less dilution if the debt can be repaid with fewer shares).

3. The company still expects $80 million in up-front milestones from partnerships in 2009. The ARRY-403 diabetes data from the Phase 1 trial should be out this summer and it sounds as if the company expects this compound to be one of the partnered compounds.