Array records $85.3 million fiscal year loss

by Joshua Lindenstein on August 12, 2014

BOULDER – Array BioPharma Inc. (Nasdaq: ARRY) on Tuesday reported revenue of $42 million for its fiscal year ending June 30, down from $69.6 million the year prior.

Boulder-based Array, which focuses primarily on developing drugs to treat various cancers, saw a net loss for the year of $85.3 million, or 69 cents per share, compared to a net loss of $61.9 million, or 57 cents per share last year.

The company’s fourth-quarter revenue and earnings took similar hits. Revenue was $6 million, down from $25.4 million for the same period last year. Net loss was $28.2 million, or 22 cents per share, compared to $17.6 million, or 15 cents per share last year.

Array shares were trading at $3.95 by mid-afternoon Tuesday, down 3.7 percent from Monday’s close.

The company stated in its earnings report that the decrease in revenue for the fourth quarter and the year was due largely to the prior year benefitting from some upfront and milestone payments in relation to multiple drugs the company is working on. The increased net profit was a combination of that and the increased cost of new and expanded collaboration costs with other companies. The cost of binimetinib co-development with Novartis also increased as the drug moved into three Phase 3 clinical trials.

After entering into an agreement with Novartis in 2010 in which Novartis received worldwide rights to binimetinib, Array also announced Tuesday that the company could potentially see a return of binimetinib rights. The drug, invented by Array, is in the Phase 3 trials in advanced cancer patients who have NRAS-mutant melanoma, low-grade serous ovarian cancer, and BRAF-mutant melanoma.

The company is also in Phase 3 trials with selumetinib, in collaboration with AstraZeneca. That drug treats patients with non-small cell lung cancer, differentiated thyroid cancer and metastatic uveal melanoma.

“Given the progress on our key programs and the possible return of binimetinib to Array, we are looking forward to an exciting year,” Array chief executive Ron Squarer said in the earnings release.