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Array BioPharma Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 2, 2011 06:36PM
Array BioPharma Inc. (ARRY) filed Quarterly Report for the period ended 2011-09-30.
Highlight of Business Operations:License revenue increased $2.4 million, or 20%, for the quarter ended September 30, 2011 compared to the same period last year. During the current quarter, we recognized $5.8 million under our new Chk-1 licensing agreement with Genentech. This was partially offset by $3.2 million less revenue recognized under the Celgene collaboration due to our revised estimate of the remaining performance period effective July 1, 2011 as discussed in Note 4 Deferred Revenue to the accompanying Condensed Financial Statements.
Collaboration revenue decreased $2.1 million, or 36%, for the quarter ended September 30, 2011 compared to the same period last year. During the current quarter, we recognized $925 thousand less in revenue on our collaboration with Genentech due to having fewer scientists engaged on the Genentech programs and $1.2 million less revenue from reimbursed clinical development costs for our collaboration with Amgen for AMG 151/ARRY-403.
The decrease of Cost of Revenue as a percentage of total revenue during the three-month period was the result of greater License and Milestone Revenue recognized during the periods.
We believe that our cash, cash equivalents and marketable securities as of September 30, 2011 will enable us to continue to fund our operations in the normal course of business for at least the next 12 months. We anticipate receiving additional funding from milestone payments from existing collaborations and plan to continue to satisfy all or a portion of the interest payment obligations under the credit facilities with Deerfield with the proceeds from sales of our common stock pursuant to the Equity Distribution Agreement with Piper Jaffray & Co. discussed in Note 7 Equity Distribution Agreement or through the issuance of shares of common stock to Deerfield in accordance with the Facility Agreements with Deerfield. We may also fund operations through the sale of our debt or equity securities which would result in dilution to existing shareholders.
Net cash provided by investing activities was $10.6 million and $19.8 million in the three months ended September 30, 2011 and 2010, respectively. The decrease is due to fewer sales of marketable securities in the quarter ended September 30, 2011 compared to the same quarter in 2010.