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May 6, 2008

Array BioPharma Scores an $80 Million Capital Backing

  • Array BioPharma received an $80 million funding from Deerfield Management, one of its largest shareholders. Array ended the third quarter of fiscal 2008 with $116 million in cash, cash equivalents, and marketable securities.

    Deerfield will receive a 2.5% transaction fee and was issued warrants with a six-year term to purchase six million shares of common stock at $7.54 per share. The price represents a 26.29% premium over its closing value yesterday.

    The $80 million commitment is a six-year, interest-bearing loan under a facility agreement. The deal provides Array with two draws of $40 million each in June and December. The company will make quarterly interest payments at a rate of 2% per annum and pay interest accruing at 6.5% per annum, compounded quarterly, at maturity.

    Array believes that together with existing reserves, the $80 million financing will enable it to advance six small molecule programs through clinical proof-of-concept studies while continuing discovery research.

    Array has three inflammation and pain programs as well as four anticancer agents in development. There are two compounds, one in Phase I and one in Phase II, being evaluated in inflammatory pain and another candidate will enter a mid-stage study in rheumatoid arthritis. Array also has two Phase II compounds and two early-stage candidates in cancer trials.

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Scientifically Studying Ecstasy

MDMA (commonly known as the empathogen “ecstasy”) is classified as a Schedule 1 drug, which is reserved for compounds with no accepted medical use and a high abuse potential. Two researchers from Stanford, however, call for a rigorous scientific exploration of MDMA's effects to identify precisely how the drug works, the data from which could be used to develop therapeutic compounds.

Do you agree that ecstasy should be studied for its potential therapeutic benefits?

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