Array BioPharma, Inc. (ARRY)
F2Q 2013 Earnings Call
February 5, 2013 9:00 am ET
Tricia Haugeto - IR
Ron Squarer - CEO
Mike Carruthers - CFO
Kevin Koch - President & CSO
David Snitman - COO & VP, Business Development
Jim Birchenough - BMO Capital
Ted Tenthoff - Piper Jaffray
Matt Lowe - JP Morgan
Mike King - JMP Securities
Matthew Andrews - Wells Fargo Securities
Stephen Willy - Stifel Nicolaus
Previous Statements by ARRY
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» Array BioPharma's CEO Discusses F1Q2013 Results - Earnings Call Transcript
I'd now like to turn the call over to Ms. Tricia Haugeto. Ms. Haugeto, you may begin.
Thank you, John. Good morning and welcome once again to Array BioPharma's conference call to discuss our financial results for the second quarter of fiscal 2013. You can listen to this conference call on Array's website at www.arraybiopharma.com. Also we are using slides today to accompany our remarks. The slides can be downloaded on the Investor Relations home page of our website. In addition a replay of the conference call will be available as a webcast from our website.
I'd like to introduce Array's Chief Executive Officer, Ron Squarer; and our Chief Financial Officer, Mike Carruthers, who will lead the call today. I'd also like to introduce Kevin Koch, our President and Chief Scientific Officer; and David Snitman, our Chief Operating Officer and Vice President of Business Development, who will be available to answers questions as needed. But before I hand over the call to Ron, I'd like to read the following Safe Harbor statement.
The matters we are discussing today include projections or other forward-looking statements about the future results, research and development goals of Array, its collaborators and future financial performance of Array.
These statements are estimates based on management's current expectations and involve risks and uncertainties that could cause them to differ materially from actual results.
We refer you to Risk Factors discussed in our filings with the SEC, including our annual report filed on Form 10-K for the year ended June 30th, 2012, and in other filings Array makes with the SEC. These filings identify important Risk Factors that could cause actual results to differ materially from those in our projection or forward-looking statement.
And now I would like to turn it over to Array's CEO, Ron Squarer.
Good morning everyone. We are pleased to share with you all today details of Array's continued evolution into a late stage development company, making substantial progress in generating data to support decisions regarding our development plans for our wholly-owned hematology programs.
Some of the most recent news we have to share actually relates to AstraZeneca's announcement just last week during their earnings call of a potential Phase 3 start with Selumetinib in non-small cell lung cancer. This Selumetinib trial could start during the second half of 2013, and this news comes on the heels of the announcement by Novartis of their intentions to begin a Phase 3 trial with MEK162 in NRAS melanoma as early as April of this year. With the start of the melanoma trial, MEK162 will be the first Array invented therapy to enter Phase 3.
Novartis recently also announced plans to presume MEK162 late stage clinical development in combination with their Raf inhibitor LGX818 in BRAF mutant melanoma.
As we mentioned during previous presentations, the economics related to our MEK162 collaboration with Novartis are particularly attractive. In fact, throughout our history, Array has been successful at partnering with excellent economics and with some of the finest companies in the industry such as Genentech, Roche, Amgen, Celgene, and others in addition to Novartis and AstraZeneca. Through these partnerships, we've been able to effectively raise substantial non-dilutive capital totaling almost $170 million in just roughly the past three years.
If you add up all of the potential partnership milestones, we could earn it totals more than $3 billion, and this is before commercialization royalties kick in. Currently, we have about $110 million in cash at the end of December. This should sustain us for good period of time especially as we expect to enter into new additional partnerships and collect milestone payments from existing partners.
The next 12 months are going to be very exciting and I'll be reviewing some of the key catalysts and value drivers with you today. But I'd actually like to start by reviewing our additional potential sources of non-dilutive funding. And so, if I turn now to Slide 4, we have a list here, which is the focus of our partnering activities. Starting with our wholly-owned Heme/Onc programs if we are convinced that it could increase the value of 520 or 6142 ARRY we would consider selective partnering on one or both of these programs to bring an additional capital and/or critical expertise and capability.
I think most of you are already familiar with our partnering plans for 797 in pain and 502 for asthma. Both of these have potential utility in very, very large markets that will require significant and specialized resources to achieve a regulatory approval and commercial success.
We have a number of pre-clinical programs with significant and valuable IP behind them. TrkA for pain and GPR119 for diabetes have attracted keen interest from potential partners and there are several other early stage programs that are also gaining a partnering attraction and momentum.