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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