Washington Editor

Array BioPharma Inc. eventually could generate more than $95 million through a collaboration to develop oncology candidates with London's AstraZeneca plc.

Referring to the deal as the "most meaningful" in Array's history, Robert Conway, CEO of the Boulder, Colo.-based company, told BioWorld Today the agreement validates Array's business plan and highlights its ability to create valuable orally active drugs against therapeutic targets.

The deal gives AstraZeneca the right to develop Array's MEK (mitogen-activated extracellular signal-regulated kinase kinase) program in oncology. It also provides AstraZeneca with exclusive worldwide rights to Array's cancer candidate, ARRY-142886, and to certain second-generation compounds for all oncology indications.

Representatives from AstraZeneca could not be reached for comment.

Array will receive a $10 million up-front payment, plus research funding and potential development milestones in excess of $85 million (dependent upon the number of successfully commercialized products). It also would receive royalties on product sales.

Array will file the investigational new drug application for ARRY-142886 and will be responsible for initiating its Phase I trial next year. Beyond the Phase I, Conway said AstraZeneca will assume development and commercialization responsibilities.

Even though ARRY-142886 is an early stage candidate, Kevin Koch, Array's chief scientific officer, told BioWorld Today the compound has shown efficacy in animal models of melanoma, pancreatic, colon, lung and breast cancers.

"I think it is a very broad-spectrum reagent and I think it has value as a monotherapy and potentially in combination therapy," he said.

ARRY-142886, a selective orally active MEK inhibitor, interferes with a cellular hyperproliferation pathway.

Outside of ARRY-142886, AstraZeneca will have the right to select from Array's second-generation oncology compounds. Array will retain rights to all therapeutic indications not selected by AstraZeneca.

Array also agreed to manufacture clinical materials for Phase I second-generation candidates, which AstraZeneca will take through all human studies.

Array's stock (NASDAQ:ARRY) closed at $5.50, up 2 cents.