Array BioPharma’s technology must be great so that it enabled it to attract Biogen Idec (BIIB) and make it sign a collaboration agreement aimed at the discovery and development of inhibitors targeting a novel kinase for the treatment of autoimmune disorders.
Indeed, Array’s proprietary Kinase-Directed Phenotypic Screening Platform must be a breakthrough to convince Biogen Idec to fund its research for three years, to be responsible for all aspects of clinical development and commercialization and to offer milestone payments payable upon achievements of certain milestones and commercial milestones, in addition to royalties.
Array did it before and it is doing it now, we mean attracting collaborators that recognize the scientific value of its technological capabilities towards discovering and developing breakthrough small molecule drugs for unmet needs.
The target for collaboration and lead inhibitors were discovered through Array's Platform technology, which relies on the small firm’s deep experience in kinase inhibitor chemistry and phenotypic screening, which can be applied to any therapeutic area where a desired cellular phenotype can be envisioned.
This is the aspect of Array that biotech investors have not yet discovered. Biogen Idec surely knows better as demonstrated by what Jo Viney, Ph.D., Vice President of Immunology Research, Biogen Idec had to say, we quote, "Array has a strong track record in the discovery of novel compounds, and we are delighted to collaborate with them." He added, "We are encouraged by the potential of this program to address inflammatory disease and are excited to add it to our immunology research portfolio."
Prohost Comments: This is not all with regard to Array. One has to look at this firm’s pipeline, its collaborations, its technological capability in discovering and designing small molecule therapeutics for diseases that have yet to find treatments.
ARRAY has an important role to play in drug discovery and development businesses. The firm has the required technologies, the expertise and the expert scientists – all make us believe that this small firm is destined to play that important role. We also believe that at its current price ARRY is way undervalued.
Why Biocryst has opened down today?
The reason besides the fact that the market woke up in a bad mood is the firm’s announcement that it is offering to sell $100 million of its common stock in an underwritten public offering. As part of this offering, BioCryst intends to grant the underwriters a 30-day option to purchase up to an additional $15 million of its common stock.
J.P. Morgan Securities LLC is acting as the sole book-running manager and Piper Jaffray & Co. is acting as sole lead manager for the proposed offering.
So the stock’s retreat was not related to any bad news about science, products, approvals, or any fundamental negative.
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