Array, Celgene Enter R&D Pact

Array BioPharma and Celgene Corp. entered a strategic R&D collaboration focused on novel therapeutics in cancer and inflammation. Under the agreement, Array will receive an upfront payment of $40 million and will grant Celgene an option to select two of four mutually selected discovery targets developed under the collaboration. Array will be responsible for all discovery and clinical development through Phase I or Phase IIa. Celgene will then have the option to select drugs resulting from two of the four programs and will receive exclusive worldwide rights to those drugs, except for Array’s limited co-promotional rights in the U.S.

Array is also entitled to receive milestone payments of approximately $200 million, if certain discovery, development and regulatory milestones are met and $300 million if certain commercial milestones are achieved, as well as royalties on sales. Array will retain all rights to the other programs.

“We are very pleased to collaborate with Celgene on the discovery and development of novel targeted drugs,” said Kevin Koch, Ph.D., president and chief scientific officer, Array BioPharma. “With Celgene’s global leadership and expertise in discovery, development and commercialization of innovative therapies, and Array’s solid track record of inventing and progressing targeted drugs into clinical development, we are forming a strong alliance to bring new therapies to patients.”

“This collaboration with Array BioPharma is a strategic opportunity for Celgene to work with a demonstrated leader in the discovery and early development of small molecule drugs. Our collaboration illustrates Celgene’s commitment to address unmet medical need in cancer and immune-inflammatory disease, while maximizing our clinical, regulatory and commercial potential worldwide,” said Tom Daniel, M.D., Celgene’s president of research.