Array BioPharma execs awarded $1.4M in stock for Novartis deal

BOULDER – Six Array Biopharma Inc. executives received stock bonuses this week worth a combined $1.4 million for helping the company re-aquire the rights to a promising cancer-fighting drug from Novartis International Pharmaceutical Ltd.

The deal closed Monday, triggering the awards, which Boulder-based Array (Nasdaq: ARRY) disclosed in filings made with the Securities and Exchange Commission on Wednesday. The $1.4 million valuation is based on Thursday’s closing price of Array shares.

In all, the six executives received 173,202 shares, and are eligible to receive the same amount if another undisclosed milestone related to this transaction is achieved within four years. Each of the six had roughly a third of their awarded shares withheld, according to the SEC filings, to satisfy tax-withholding obligations.

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The incentives were set up and approved by the Array board of directors in August. Novartis’ then-pending deal to acquire several oncology assets from GlaxoSmithKline made it apparent that Novartis (NYSE: NVS) would have to divest certain competing drug candidates to gain regulatory approval of the acquisition.

Binimetinib, an Array drug candidate licensed to Novartis, was one of those. The drug is in three Phase 3 clinical trials for the treatment of two types of melanoma as well as a type of ovarian cancer. It could gain its first FDA approval as early as next year, and company officials have said they believe the drug, along with another acquired from Novartis, is worth more than $1 billion in future annual revenue.

Chief executive Ron Squarer was awarded 77,881 shares this week. Aside from 24,954 withheld to cover taxes, he sold 40,000 at $8.25 per share on Monday for a total of $330,000. Chief operating officer Andy Robbins, awarded, 32,069 shares, sold all 21,576 of his remaining after tax obligations for $8.25 per share.

None of the other execs sold shares beyond those withheld for tax obligations.

Vice president and general counsel John Moore received 22,906 shares. Chief medical officer Victor Sandor received 17,440 shares. And chief science officer Nicholas Saccomano and executive vice president of business development David Snitman received 11,453 each.

Array shares closed at $8.23 Thursday, down 7 cents from the previous day.