Array BioPharma Inc.
) recently entered into an agreement with
) to develop and commercialize ARRY-380 (ErbB2). ARRY-380
is an orally active, reversible and selective small-molecule HER2
We note that ARRY-380 has already completed phase I studies in
patients with pre-treated metastatic breast cancer. The study
revealed that the candidate was well tolerated and had anti-tumor
ARRY-380 also demonstrated superiority with respect to overall
survival in an intracranial HER2+ breast cancer xenograft model,
in comparison to Tykerb (lapatinib) and neratinib. We note that
Tykerb is marketed by
Array is expected to receive an upfront fee of $10 million on
the initiation of the collaboration. As per the terms of the
agreement, Oncothyreon will be responsible for the development of
ARRY-380 in multiple proof-of-concept studies in patients
suffering from metastatic breast cancer, including patients
having brain metastases. These studies will evaluate ARRY-380 in
combination with other approved breast cancer drugs.
Following their completion, Array and Oncothyreon plan to
jointly conduct a phase III program on ARRY-380 which will be
supported by the proof-of-concept studies. Both Array and
Oncothyreon will have the right to come out of further
development and commercialization but will still receive royalty
payments. Array expects to receive double-digit royalty payments
on the candidate's approval.
While Array will be responsible for the worldwide
commercialization of the candidate, Oncothyreon will enjoy
co-promotion rights to the candidate in the US. The companies
will be however sharing the commercialization costs and profit
equally in the US. Oncothyreon is entitled to receive
double-digit royalty on net sales in the ex-US market. Moreover,
the companies will share any proceeds from sublicense of
marketing rights equally.
Array BioPharma presently carries a Zacks Rank #3 (Hold).
Meanwhile, companies like
Jazz Pharmaceuticals Public Limited Company
) look better positioned with a Zacks Rank #1 (Strong Buy).
ARRAY BIOPHARMA (ARRY): Free Stock Analysis
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