Array BioPharma's CEO Presents At Morgan Stanley Healthcare Conference - Transcript

Array BioPharma, Inc. (ARRY)

Morgan Stanley Healthcare Conference

September 10, 2012, 10:35 a.m. ET


Ron Squarer - CEO

Michael Carruthers - CFO

Kevin Kock - President and CSO


Unidentified Analyst

Okay. I think we will go ahead and get started here. For those of you who don't know me, I'm (inaudible) MOS Biotech team and I'm joined right now by the team from Array BioPharma. So, we have Ron Squarer, CEO; Michael Carruthers, CFO; and Kevin Kock, CSO of Array. Thank you guys for joining us. Few housekeeping things before we get started. All disclosures, personal holding disclosures and Morgan Stanley disclosures are in the Morgan Stanley website. For those of you who haven't been here before this is open Q&A, if you are free to join us at any point if you have a question.

With that I'll turn it over to Ron and team and guys you have a lot of drugs in development a lot of stuff going on, so maybe to start if you could just give us some brief overview of the company and their drugs in recent events.

Ron Squarer

Thank you for that introduction, I'm going to be making some forward-looking statements, so please consult our 10-K for a full discussion of risk and get specifically Kevin Kock, our Chief Scientific Officer here also one of the founders of the company, Mike Carruthers, our CFO, we also in the audience have another one of our Founders and our Chairman, Kyle Lefkoff.

So, it has been a very exciting time indeed. We are about over 160% year-to-date, over 60% in the last three months, in terms of our share price and this is really been catalyzed by their progress we have made with our portfolio looking at as many as five potential Phase 3 starts between now and the end of next year.

For those who are familiar with the company, there are two really remarkable things about Array. One is our ability to discover products compounds that stand at test of time, so INDs have been filed on 18 Array invented compounds, 15 of those are still in development, and 10 of those are in Phase 2 which is pretty remarkable track record.

The other is the ability to attract and enter into very valuable partnerships with great companies such as AstraZeneca, Novartis, Celgene, Roche, Amgen and others. And perhaps there is importantly to garner very impressive financials, so just last year we entered into an agreement with Genentech on Chk-1 preclinical compound in a tough biotech market $30 million upfront, as many as $700 million in milestone and double-digit royalty.

In total in fact, if you look at our partnered portfolio, we have as many as $3.4 billion in potential milestones before royalty. And just in the last two to three year's we raised $170 million worth of non-dilutive financing from the partnerships.

So, I'll just talk for a couple of minutes about our internal pipeline and touch on our partnered pipeline and then open up for some questions. So, of the five products which we see potential entering Phase 3 and by the end of next year two of those (inaudible) products. So, as of our last quarter call we have been very clear that internally we are focused on developing and commercializing HemOnc product.

Our first product is ARRY-614 for myelodysplastic syndromes and we are targeting and publishing about 100,000 Int-1 low risk myelodysplastic syndrome patients let's say about two-thirds of the total. We are looking within that group at HMA failures patients who have no choice, no other therapeutic option and have a very poor prognosis. So, thus far we have shown that a 40% response rate with multi-lineage response in that population, we are setting a new much more potent formulation, more bio available and expect that data to fully mature by the beginning and next year.

Our other HemOnc program, 520 for multiple myeloma is very active as a single agent in heavily [protrude] patients about 20% response rate and over 8 months duration. And we are now studying in combination with dex carfilzomib and bortezomib. So, we look forward to that.

Partnering, we just (inaudible) about our data in our pain program 797at our primary end points and we are looking to partner that product and to maximize value, we asthma program that we reads out Phase 2 beginning actually May of next year at ATS and another potentially valuable partnerable product.

On our partnered portfolio we have 10 partnerships I'm not going to go through them all, but perhaps the most important to us is selumetinib partnered with AstraZeneca the MEK inhibitor that showed remarkable results in KRAS mutant lung cancer. At ASCO this year we expect AstraZeneca to continue the development of that product and look forward to them announcing their fore development plan in the near future. Novartis, actually the economics on the Novartis collaboration are substantially higher, so AstraZeneca made about double-digits upon success. Novartis has significantly higher royalties and that's what MEK162 which showed remarkable results NRAS mutant melanoma at ASCO and we expect them to move forward. We continue to very aggressively develop the product.

So, between the two internal program, the MEK inhibitors and danoprevir which Roche has indicated is a Phase 3 decision for the next year. We have five programs that maybe moving towards commercialization in the very near future.

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