Array BioPharma Inc. (ARRY)
F1Q2011 Earnings Call Transcript
November 9, 2010 9:00 am ET
Tricia Haugeto – IR
Bob Conway – CEO
Mike Carruthers – CFO
Kevin Koch – President and Chief Scientific Officer
Eun Yang – Jefferies & Company
Stephen Willey – Stifel Nicolaus
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Thank you, Takisha [ph]. Good morning and welcome once again to Array BioPharma's Conference Call to discuss our financial results for the first quarter of fiscal 2011. 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 homepage of our website. In addition, a replay of the conference call will be available via telephone for the next seven days and via the internet.
I'd like to introduce Array's Chief Executive Officer, Bob Conway and our Chief Financial Officer, Mike Carruthers who will lead the call today. I would also like to introduce Kevin Koch, our President and Chief Scientific Officer, who will be available to answer questions as needed but before I hand over the call to Bob, I would 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 and 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 30, 2010 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 projections or forward-looking statements. Now, I'd like to turn over to Array's CEO, Bob Conway.
Thanks, Tricia. Good morning everyone. Thanks for joining the call to discuss Array's first quarter results for the fiscal year ending June 30, 2011. As Tricia mentioned, we'll be using slides today that you can access through our website at arraybiopharma.com and on the Investor Relations page. And I'll announce the slide I'm going to right before I have my remarks for that. I hope everyone had a chance to review last night’s press release. We're pleased to report on our progress this past quarter for both our proprietary and partnered programs.
I'm on slide three now and let me start by reminding you of Array's value proposition and why we believe Array continues to be a good investment and has significant opportunity to build value in the future. We have multiple high value Phase II programs, strong partnerships with leading companies including AstraZeneca, Amgen, Novartis, Genentech, Roche and Celgene. These are high value deals with terrific economics, almost $3 billion in potential milestones, double digit royalties and an option to co-detail or promote on several programs.
We continue to have a deep pipeline of drugs in discovery and development providing significant future partnering opportunities. We put 13 drugs into Clinical Development over the last five or six years. We're well capitalized with 109 million of cash and marketable securities as of September 30, 2010, plus a stream of potential milestones from our partners to fund the company.
Moving on to slide four, this details our accomplishments. And we got a lot done during the first quarter of fiscal 2011. First, MEK162, this is our MEK inhibitor we partnered with Novartis, completed patient enrollment in the biliary tract cancer expansion trial and initiated KRAS and BRAF mutant colorectal cancer expansion trials as well.
Selumetinib that’s the new name for AZD6244, the MEK inhibitor we partnered with AstraZeneca completed patient enrollment of two Phase II combination trials in melanoma and non small cell lung. Array-520 is our 100% owned kinesin spindle protein inhibitor where we established the maximum tolerated dose and initiated a Phase II single agent trial in multiple myeloma. AMG 151 is a glucokinase activator partnered with Amgen. We completed a Phase I multiple sending dose trial and now all future activities will be – clinical activities will be done by Amgen.
Array-380 is a selective HER2 inhibitor. Again, we own 100% of the rights to this drug. We reported positive Phase I data and initiated an expansion trial in patients with metastatic breast cancer. And finally, the Danoprevir is NS3 protease inhibitor that we invented for InterMune, which later partnered with Roche. Roche acquired all of the rights to Danoprevir this past quarter from InterMune for $175 million payment. Array retains its milestone and royalty rights.
Let's move on now to slide five. Today, we're focusing investor retention on our four highest value programs with near-term value creating events that are even in Phase II proof-of-concept trials or soon will be. These include the two MEK inhibitors and you could see the ownership for these in right hand side of the slide, one with Novartis, the other with AstraZeneca. Our KSP program Array-520 and our glucokinase activator for Type II Diabetes. I'll update you on each of these programs today.