Redmile Group Is Putting More Money Into Array BioPharma Inc. (ARRY)

Let’s now discuss the company’s selumetinib, which is an MEK inhibitor licensed to AstraZaneca PLC (NYSE:AZN). This product continues to progress through Phase 3 trials as a therapy for different variations of cancer, but AstraZaneca has recently announced that a Phase 3 study of selumetinib in combination with decarbazine for the treatment of patients with metastatic unveal melanoma did not meet its primary endpoint of progression-free survival. This announcement has put some downward pressure on the share price of Array. Although there is still significant risk associated with a potential investment in the biopharmaceutical company, the clinical stage cancer pipeline is very intriguing and attractive.

Array BioPharma has recently reported its financial results for the fiscal fourth quarter and full fiscal year 2015 that ended June 30, 2015. Due to the fact that Array BioPharma is a clinical-stage biotechnology company, it does not generate any sales from any commercialized products yet. However, the company’s revenue originates from collaboration deals with other drugmakers. Hence, Array posted revenue of $51.9 million for the fiscal year of 2015, compared to $42.1 million reported a year ago. In the meantime, the company reported net income of $9.4 million or $0.07 per diluted share in 2015, compared to a net loss of $85.3 million or $0.69 per share reported in fiscal 2014. Donald Chiboucis’ Columbus Circle Investors is among the hedge funds bullish on Array BioPharma Inc. (NASDAQ:ARRY) within our database, holding an ownership stake of 931,389 shares as of June 30.

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