Array BioPharma Restructures

Array BioPharma will restructure in an effort to extend its financial resources to focus on the development of key clinical programs: ARRY-520, a KSP inhibitor for multiple myeloma, ARRY-614, a p38 / Tie-2 inhibitor for myelodysplastic syndrome, and MEK162, a MEK inhibitor for cancer in co-development with Novartis.

The restructuring will result in a reduction of staff by approximately 20%, or 70 employees. The cuts will be in discovery research and support positions. Array will retain a smaller discovery research organization focused on advancing partnered programs with Amgen, Celgene and Genentech, as well as its own late-stage discovery programs.

“It is extremely difficult to release these outstanding people who have contributed substantially to the company over the years, but these actions are necessary given our need to focus resources on our key clinical development programs,” said Robert E. Conway, chief executive officer. “We look forward to a number of potential value-creating events during the second half of 2011 including Phase II combination data on selumetinib in patients with melanoma or non-small cell lung cancer, Phase II data on ARRY-520 in multiple myeloma patients and Phase I data on ARRY-614 in MDS patients.”

The company expects to reduce its annual net cash used in operating activities by approximately $20 million, compared with fiscal 2011. The company will record a one-time restructuring charge of approximately $3.5 million in 4Q11, associated with termination benefits.