Biotech Values

[mcbio]

Array Announces New Oncology Agreement with Genentech

Good deal for ARRY. $28M up-front for a program they barely even mention during CCs and that is so early stage sounds good to me. I, of course, don't expect this news to do much to the stock, especially in this environment. I think it's going to probably take positive news from the MEK program combined with a rebound in the markets for something meaningful to happen to the stock. But, if nothing else, this deal today extends the runway about a quarter and a half with non-dilutive capital and adds further credibility to the type of work ARRY is capable of doing (yet another deal with a big pharma/big bio with a nice up-front payment).

It's also nice that Genentech is responsible for all clinical and commercialization costs going forward. ARRY needs to offload as much in expenses as they can. In terms of royalties, it sounds like potential royalties start in the single-digit range but have the potential to reach double-digit.