Array offering 18.4M shares of common stock to raise capital

BOULDER — Array BioPharma Inc. on Wednesday announced that it will offer 18.4 million shares of its common stock at a price of $6.25 per share in a public offering, trying to take advantage of a 70 percent gain in stock price Monday driven by positive trial results for a pair of its drugs in the treatment of melanoma.

The Boulder-based biopharmaceutical company (Nasdaq: Arry) expects the gross proceeds from the sale to be approximately $115 million, not counting underwriting discounts and commissions and offering expenses. The offering is expected to close on or about Oct.3.

Array’s stock started Wednesday at $6.59 per share, but by mid-day was trading at $5.46 per share.

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Array’s share price, which closed Friday at $3.65, was at a 52-week high of $6.23 by early afternoon Monday after positive results of a trial using the combination of binimetinib and encorafenib in the treatment of melanoma.

Array intends to use the net proceeds to fund research and development efforts, including clinical trials for it three cancer-drug candidates binimetinib, encorafenib and selumetinib, build and scale commercial capability and for general corporate purposes, including general working capital.

J.P. Morgan Securities LLC and Cowen and Co. LLC are acting as joint book-running managers for the offering.  Stifel and Wells Fargo Securities, LLC are acting as lead managers and SunTrust Robinson Humphrey, Inc. is acting as co-manager.