By Tess Stynes 
 

Array BioPharma Inc. (ARRY) said it reached a deal with Novartis AG (NVS, NOVN.VX) under which the biopharmaceutical company will regain global rights to its binimetinib cancer treatment as well as an upfront payment of $85 million.

Boulder, Colo.-based Array BioPharma's shares soared 25% to $4.87 in recent after-hours trading.

The agreement is subject to Novartis and GlaxoSmithKline PLC (GSK, GSK.LN) completing a complex series of transactions valued at more than $20 billion, which were unveiled in April. The moves are expected to narrow Novartis's scope without significantly hitting its revenue and to turn Glaxo into a vaccines-and-consumer-drugs powerhouse. The transactions are expected to close in the first half of next year.

Array BioPharma Chief Executive Ron Squarer said in a news release Wednesday that binimetinib is advancing in three phase 3 clinical trials and that the company plans to file for its first regulatory approval in the first half of 2016.

The company had granted Novartis world-wide exclusive rights to develop and commercialize binimetinib under a 2010 license agreement, which will terminate and be replaced by the new accord.

Under the pact, Novartis also has agreed to provide transitional regulatory, clinical development and manufacturing services.

Array BioPharma plans to provide more details during a conference call set for Thursday at 9 a.m. New York time.

Write to Tess Stynes at tess.stynes@wsj.com

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