Revenue off, loss up at Array BioPharma
Boulder-based Array (Nasdaq: ARRY) reported that revenue for the quarter was $18.4 million, compared with $23.2 million for the same period a year earlier, according to a press statement. The company reported that the decline in revenue in the most recent quarter came because of a nonrecurring $28 million license payment in the same quarter a year earlier from its partner Genentech Inc. in Vacaville, California, a wholly owned subsidiary of Roche USA.
Array also reported a net loss of $10.9 million, or 10 cents per share, for the quarter ended Dec. 31, compared with a net loss of $3.8 million, or 6 cents per share, for the same quarter a year earlier, the press statement said. Research and development expense was $13.9 million in the most recent quarter, compared with a $13.2 million research and development expense for the same quarter a year earlier.
During the quarter, Array also paid partner pharmaceutical company Novartis International AG its first annual co-development contribution of $9.2 million to maintain a maximum royalty rate on one of the as-yet unapproved cancer drugs, according to the press statement.
At the same time, the company made "significant progress" toward developing two of its own hematology (blood) drugs in the most recent quarter, according to the press statement.
In addition, Novartis (NYSE: NVS) has scheduled a Phase 3 drug trial in April on a cancer drug developed by Array. Novartis, based in Basel, Switzerland, also announced plans in the most recent quarter to pursue clinical development of another Array research program.
Separately, partner pharmaceutical company AstraZeneca plc in the most recent quarter said it planned to start a Phase 3 drug trial in the second half of 2013 on a lung cancer drug developed by Array. AstraZeneca (NYSE: AZN) is based in London.
"We are seeing strong progress across our pipeline," Ron Squarer, chief executive of Array, said in the press statement.
Successful Phase 3 trials are seen as the final step toward receiving approval from the U.S. Food and Drug Administration to sell drugs. FDA approval for biopharmaceutical drugs can take 10 years or more, according to industry experts.
Array also has research partnerships with InterMune Inc. (Nasdaq: ITMN)/Roche USA, based in Brisbane, California. The company raised $70.9 million in a public offering in November. The company plans to use the money to fund potential Phase 3 clinical trials, according to the press statement.
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