Biotech Values

[mcbio]

ARRY @ Jefferies (6/6/12)

1. Slide 5 and 32 - Not talked about much but also presented at ASCO was a trial for selumetinib in RA iodine-refractory metastatic thyroid cancers wherein selumetinib had overall response rate of 71% in NRAS/BRAF mutant patients (5/7) retreated with RAI.

2. Slide 5 - Selumetinib/sorafenib combo in HCC patients had 27% overall response rate (historically less than 5% with sorafenib alone).

3. Chance for ARRY to take one MEK162 indication and co-develop for significantly increased royalty beyond typical double-digit royalty with ARRY investment capped. ARRY in active discussions with NVS to select this indication and it would be a fast to market opportunity.

4. Slide 37 - list of 10 ongoing NVS trials involving MEK162 (both single-agent and combo). PI3K and BRAF combos noted in particular as most interesting.

5. Slide 40 - note for first time that selumetinib royalties start at high single-digit and progress to double-digit (same for partnership with Genentech). All other deals start at double-digit and, as mentioned, ARRY can co-develop one MEK162 indication at significantly increased royalty beyond typical double-digit royalty.