After Array BioPharma announced a deal yesterday with Amgen that will send Array’s phase 1 diabetes drug, ARRY-403, to Amgen for $60 million plus “additional contingent payment for certain clinical and commercial milestones”, company stocks jumped 25.77 percent.
If ARRY-403 is approved, Array will get double-digit royalties and has retained the right to co-promote the drug in the U.S. In addition, the $60 million will go a long way toward keeping Array solvent, more than doubling the amount of cash the company had at the end of last quarter. Amgen has also agreed to pay the salaries of some Array scientists to develop a follow on to Arry-403, which could help the cash burn rate.
Array stock (Nasdaq: ARRY) was up 58 cents, or 25.77 percent, to $2.83.
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