Array BioPharma restructures to focus on clinical programs
Boulder, Colo.-based Array BioPharma is restructuring to extend its financial resources and to focus on the development of its key clinical programs.
The company intends to aggressively advance ARRY-520, a KSP inhibitor for multiple myeloma; ARRY-614, a p38/Tie-2 inhibitor for myelodysplastic syndrome; and MEK162, a MEK inhibitor for cancer in co-development with Novartis. Additionally, Array retains its R&D organization and will continue to advance select new compounds into development.
The restructuring will result in a 20% reduction in Array's staff, or 70 employees. These reductions were primarily in discovery research and support positions, to better balance the discovery and development groups. Array’s smaller discovery research organization will focus on advancing its partnered programs with Amgen, Celgene and Genentech, as well as select wholly owned late-stage discovery programs.
As a result, Array expects to reduce its annual net cash used in operating activities by approximately $20 million in fiscal 2012, to about $40 million, including milestones received from existing collaborations. This does not include any potential up-front or milestone payments from new collaborations. Array has a number of programs outside of its key clinical programs that can be partnered.
The company will record a one-time restructuring charge in the fourth quarter of fiscal 2011, currently estimated to be $3.5 million, associated with the payment of one-time termination benefits. Array had $76 million in cash, cash equivalents and marketable securities as of March 31, 2011. It also received a $10 million phase II milestone payment from Novartis for the MEK162 program during the current quarter.