Technology  December 12, 2014

Array BioPharma cashes in on deal with Oncothyreon

BOULDER – A new deal with a Seattle pharmaceutical company will bring Boulder-based Array Biopharma Inc. (Nasdaq: ARRY) $20 million up front and the potential for significant milestone and royalty payments related to the breast cancer drug ONT-380.

Array has granted Oncothyreon Inc. (Nasdaq: ONTY) exclusive license to develop, manufacture and commercialize the drug, replacing a previous agreement between the two companies in which they were jointly developing ONT-380.

ONT-380, invented at Array, has so far shown positive results in patients with advanced metastatic breast cancer. The drug, going through Phase 1 trials now, is in the earlier stages of development and could be several years away from commercialization.

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As part of the new deal, Oncothyreon will pay Array the upfront fee of $20 million, and the deal could play out in a variety of ways from there.

If Oncothyreon commercializes the drug, Array would have the potential for double-digit royalties on sales. If Oncothyreon sublicenses ONT-380 to another company, Array would receive a percentage of Oncothyreon’s payments from the sublicensing deal. If Oncothyreon is acquired by another company within three years, Array would be eligible for up to $280 million in commercial milestone payments as well as royalties on sales.

Array’s stock price has increased significantly in recent days upon news that it was receiving full rights to the melanoma and ovarian cancer drug binimetinib back from Novartis. Its share price remained steady Friday. Shares were trading at $4.92 by mid-afternoon, up 2 cents from Thursday’s close.

BOULDER – A new deal with a Seattle pharmaceutical company will bring Boulder-based Array Biopharma Inc. (Nasdaq: ARRY) $20 million up front and the potential for significant milestone and royalty payments related to the breast cancer drug ONT-380.

Array has granted Oncothyreon Inc. (Nasdaq: ONTY) exclusive license to develop, manufacture and commercialize the drug, replacing a previous agreement between the two companies in which they were jointly developing ONT-380.

ONT-380, invented at Array, has so far shown positive results in patients with advanced metastatic breast cancer. The drug, going through Phase 1 trials now, is in the earlier stages of development and…

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