Array Teams Up With Pierre Fabre For Two Novel Oncology Products; Stock Up

(RTTNews) - Array BioPharma Inc. (ARRY) and Pierre Fabre announced a collaboration to globally develop and commercialize Array's late-stage novel oncology products, binimetinib and encorafenib.

Binimetinib, a MEK inhibitor, and encorafenib, a BRAF inhibitor, are currently advancing in three, global Phase 3 trials for melanoma and ovarian cancer.

Top-line results from NEMO, a Phase 3 study of binimetinib in patients with NRAS-mutant melanoma, are expected before the end of this year.

Array will receive an upfront payment of $30 million and retains exclusive commercialization rights for binimetinib and encorafenib in the U.S., Canada, Japan, Korea and Israel.

Pierre Fabre will have exclusive rights to commercialize both products in all other countries, including Europe, Asia and Latin America.

Array is entitled to receive up to $425 million if certain development and commercialization milestones are achieved, and is eligible for robust, tiered double-digit royalties.

Array and Pierre Fabre have agreed to split future development costs on a 60:40 basis, with initial funding committed for new clinical trials in colorectal cancer and melanoma.

All ongoing binimetinib and encorafenib clinical trials remain substantially funded through completion by Novartis.

Pierre Fabre Oncology, a business unit of the global 10,000-employee Pierre Fabre company, is supported by over 1,000 employees with a strong focus on European markets.

In 2014, worldwide annual sales of Pierre Fabre Oncology products surpassed $200 million on the strength of the Oral Navelbine, Javlor and Busilvex brands.

In addition, Pierre Fabre has a significant commitment and track record in pharmaceutical R&D, developing products for patients afflicted with lung, breast and other solid tumors and hematological cancers.

ARRY climbed 10 percent in pre-market activity to $4.84.