Array BioPharma F2Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-02-03 09:19:13.0

Tags: Program, Partnership, Analyst, Call Transcript, Diabetes, Earnings, Dave Snitman, Business Structures, Finance, Seeking Alpha, Array BioPharma Inc.

Question-and-Answer Session

Operator

Yes, certainly sir. (Operator Instructions). We'll take our first question from Cory Kasimov with JPMorgan.

Unidentified Analyst

Hi, good morning guys. This is Mona for Cory. Two questions. One, can you provide just a bit more clarity on the 80 million you're forecasting for calendar year '09? If so, can you break that down into what you expect to receive from existing relationships versus new partnerships?

Robert Conway

Sure, Mona. Dave Snitman's with us this morning. He will provide some more clarity.

Unidentified Analyst

Thanks.

David Snitman, Ph.D.

Yes, we are looking at that being broken down into a series of upfront payments for the licensing of clinical candidates plus upfront payments from licensing of preclinical candidates. And then we are also looking at a little bit of that coming from some head count reimbursement for programs that would support backup programs for some of these as well as milestones from existing collaborations.

Robert Conway

Yeah. And I think we've said at the JPMorgan Conference that around 15 to 17 million of that would be existing programs and the rest would come from a development program and a discovery program.

Unidentified Analyst

Okay, that very helpful. And then just on the new partnerships. I can't remember if you reviewed this, but does this depend at all on the generation of clinical data that's yet to come?

David Snitman, Ph.D.

No, we are in active discussions now with several companies on different programs.

Unidentified Analyst

Okay. And then just another question for you Dave on the glucokinase activator program. Just wondering if you have seen anything... any change either positive or negative since the FDA updated its clinical trail guidance for diabetes drugs. Any effect on the partnership discussions?

David Snitman, Ph.D.

Right. No, I think that does have an impact on the risk factor in any new diabetes program. I think we are aware of that. I think the partners we are talking to are aware of that. And I think that places a premium on a quality drug in this area that doesn't have cardiovascular risk. We think that ARRY-403 fits into that category and we are also getting feedback from our partners that this is also something of interest to them. So I think that's just the world that we live in today and so I don't really see it change.

Unidentified Analyst

Okay. Thanks very much.

 

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