Array’s loss widens as biopharma preps for commercialization

BOULDER — Array BioPharma Inc. (Nasdaq: ARRY) on Tuesday reported a loss of $24.2 million, or 17 cents per share, on revenue of $35.4 million for its fiscal second quarter that ended Dec. 31.

Compared with the same quarter of fiscal 2015, the Boulder-based drug development company’s revenue increased $8.5 million, primarily due to $27.3 million in reimbursement revenue from Novartis.  Net loss was roughly triple compared with the $8.6 million, or 6 cents per share, reported for the same quarter in fiscal 2015.

Ron Squarer, Array’s chief executive, said the company continues to make progress with its melanoma-fighting drugs binimetinib and encorafenib in clinical trials and expects to submit them to regulatory authorities for marketing approval this year.

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In November, Array and Pierre Fabre announced a collaboration agreement for binimetinib and encorafenib. Under the terms of the agreement, Array received an upfront payment of $30 million in January and retains exclusive commercialization rights for binimetinib and encorafenib in key territories, including the United States and Japan.  Pierre Fabre will have exclusive rights to commercialize both products in other territories, including Europe, Asia and Latin America. Array is entitled to receive up to $425 million if certain development and commercialization milestones are achieved, and is eligible for double-digit royalties.

For the six months ended Dec. 31, revenue was $51.6 million, compared with $33 million for the same period in fiscal 2015. Net loss for the six months ended Dec, 31 was $45.2 million, or 32 cents per share per share, compared with a net loss of $36.2 million, or 27 cents per share, in the comparable prior-year period.

Array’s stock was trading at $3.11 per share mid-day Tuesday. Its 52-week range is $2.78 to $8.59 per share.