Array Biopharma Cuts Staff by 20%, Loses Development Deal with Amgen
Array Biopharma, a Boulder, CO-based drug development company, announced today it has laid off 20 percent of its staff and that Amgen has ended a drug development partnership with the company. The cuts leave Array (Nasdaq: ARRY) with about 200 employees.
Array and Amgen (Nasdaq: AMGN) had been working on a treatment for type 2 diabetes, but Amgen informed Array this week it was leaving the partnership, according to Array. Array’s stock took a quick hit Wednesday following the announcement.
The layoffs will reduce Array’s drug discovery team as Array prioritizes developing and commercializing hematology and oncology drugs.
The bad news was included in Array’s quarterly earnings report. Array reported revenue of $25.4 million for the past quarter, up from $20.7 million in 2012. The revenue was the result of an upfront license payment from a collaboration agreement with Oncothyreon and the achievement of the Phase 3 trial milestone from Novartis, Array’s earnings release said.
Array reported a net loss of $17.6 million, or 15 cents per share, for the quarter. During the same quarter of 2012, Array had a net loss of $8 million.
Array in July announced drug development deals with Celgene and Loxo Oncology that could bring Array more than $800 in milestone payments.