Array to offer shares to raise cash for R&D
Boulder-based Array (Nasdaq: ARRY) plans to offer 18 million shares at a price of $3.65 per share, according to documents filed with the SEC. The offering is expected to close on Thursday, Nov. 15. Underwriters also were given a 30-day option to purchase 2.7 million additional shares to cover any over-allotments.
On Nov. 7, the closing price of Arrayís stock was $4.21 per share, and the company had about 60 stockholders of record. Arrayís stock has traded in a range between $1.58 and $6.17 in the past year.
Company executives have said that Array has five drug products expected to reach the final stages of U.S. Food and Drug Administration approval by the end of 2013. FDA approval for biopharmaceutical drugs can take 10 years or more, according to industry experts.
Last week, Array reported revenue of $15.8 million for the third quarter, a decline from the $22.1 million in revenue reported for the same period a year ago. The company said a decline in revenue was expected, since it recorded a majority of a $28 million license payment from partner Genentech Inc. in its third quarter of 2011. Genentech, based in Vacaville, California, is a wholly owned subsidiary of Roche USA.
In addition to the Genentech partnership, Array has drug research partnerships with AstraZeneca plc (NYSE: AZN) based in London; Novartis International AG (NYSE: NVS) based in Basel, Switzerland; and InterMune Inc. (Nasdaq: ITMN)/Roche USA. InterMune is based in Brisbane, California.
Jefferies & Company, Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the proposed stock offering, according to the SEC document. Piper Jaffray & Co., Stifel Nicolaus Weisel and William Blair are acting as co-managers.
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