Share price of Array BioPharma Inc. (ARRY) fell 5.1% after the company announced its fiscal fourth quarter results on Aug 12. Shares lost a further 2.6% thereafter.
Array BioPharma reported a loss of 22 cents per share in the fourth quarter of fiscal 2014, a penny narrower than the Zacks Consensus Estimate of a loss of 23 cents but wider than the year-ago loss of 15 cents per share.
Revenues of $6 million slumped 76.3% from the year-ago quarter. Revenues in the year-ago quarter had benefited from the recognition of a $10.0 million upfront payment from Oncothyreon (ONTY) along with $5.0 million earned as milestone payments from Novartis (NVS) for the start of a phase III trial. Revenues were short of the Zacks Consensus Estimate of $8 million.
Quarter in Detail
Research & development expenses came in at $14.5 million, down 13.9% year over year. General & administrative expenses came in at $5.8 million, up 11.8% year over year.
Fiscal 2014 Results
Revenues for fiscal 2014 came in at $42.1 million, down 39.5% from fiscal 2013 and short of the Zacks Consensus Estimate of $44 million. Loss per share in fiscal 2014 came in at 69 cents versus a loss of 57 cents in fiscal 2013, in line with the Zacks Consensus Estimate.
Pipeline Update
Key candidates in Array BioPharma’s pipeline include filanesib, selumetinib and binimetinib. Array BioPharma expects Novartis, which currently owns the development and commercialization rights to binimetinib, to return the same. Three phase III trials on binimetinib in advanced cancer patients continue to enroll – NRAS-mutant melanoma, low-grade serous ovarian cancer and BRAF-mutant melanoma. A regulatory filing for binimetinib for BRAF-mutant melanoma is expected in 2015.
Meanwhile, three phase III trials are underway on selumetinib in advanced cancer patients – second-line KRAS-mutant advanced or metastatic NSCLC, differentiated thyroid cancer and metastatic uveal melanoma. A regulatory filing for selumetinib for uveal melanoma is expected in 2015.
Filanesib is currently in phase II and is being evaluated for multiple myeloma. Array BioPharma is currently working towards initiating a global phase III study, FACTOR to evaluate Kyprolis plus filanesib versus Kyprolis alone in patients with relapsed refractory multiple myeloma (RRMM).
We expect investor focus on further pipeline updates.
Currently, Array BioPharma carries a Zacks Rank #4 (Sell). Right now, Gilead Sciences (GILD) looks attractive with a Zacks Rank #1 (Strong Buy).
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