Biotech Values

[mcbio]

ARRY @ Piper (11/27/12)

1. ARRY believes that by utilizing the biomarker and targeting MM patients with low levels of AAG (70-80% of MM patients have low to medium AAG per ARRY), they can attain a response rate for 520+dex in the "30s" (i.e. 30% or greater).

2. ARRY has seen a CR in the 520+carfilzomib combo at "relatively low doses." ARRY envisions a pivotal 520+carfilzomib trial as having 400-450 patients with PFS as primary endpoint and OS as a secondary endpoint.

3. With the recent financing, ARRY's existing cash takes them out nearly three years given anticipated net annual burn going forward of $55M (including anticipated milestones).

4. Deerfield debt due in 2015/2016 is $93M.