Delaware
|
84-1460811
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
|
|
3200 Walnut Street, Boulder, CO
|
80301
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
|
(303) 381-6600
|
|
(Registrant’s Telephone Number, Including Area Code)
|
Large Accelerated Filer
x
|
Accelerated Filer
¨
|
Non-Accelerated Filer
¨
|
Smaller Reporting Company
¨
|
|
Emerging Growth Company
¨
|
Title of each class
|
Trading Symbol
|
Name on each exchange on which registered
|
Common Stock, par value $0.001 per share
|
ARRY
|
Nasdaq Global Market
|
|
|
|
|
|
Page No.
|
|
||
Condensed Consolidated
Financial Statements
|
|
|
|
Condensed Consolidated
Balance Sheets as of
March 31, 2019 and
June 30, 2018 (unaudited)
|
|
|
Condensed Consolidated Statements of Operations and Comprehensive Loss for the
three and nine months ended March 31, 2019 and 2018 (unaudited)
|
|
|
Condensed Consolidated Statement of Stockholders' Equity for the three and nine
months ended March 31, 2019 and 2018 (unaudited)
|
|
|
Condensed Consolidated
Statements of Cash Flows for the
nine months ended
March 31, 2019 and 2018 (unaudited)
|
|
|
Notes to the Unaudited Condensed
Consolidated
Financial Statements
|
|
|
|
|
|
|
|
|
||
Item 5.
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
March 31,
|
|
June 30,
|
||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
96,636
|
|
|
$
|
114,748
|
|
Marketable securities
|
326,452
|
|
|
297,739
|
|
||
Accounts receivable
|
31,660
|
|
|
32,084
|
|
||
Inventory
|
4,397
|
|
|
121
|
|
||
Prepaid expenses and other current assets
|
34,769
|
|
|
6,851
|
|
||
Total current assets
|
493,914
|
|
|
451,543
|
|
||
|
|
|
|
||||
Non-current assets
|
|
|
|
||||
Marketable securities
|
56,008
|
|
|
919
|
|
||
Property and equipment, net
|
6,977
|
|
|
7,128
|
|
||
Other non-current assets
|
10,105
|
|
|
774
|
|
||
Total non-current assets
|
73,090
|
|
|
8,821
|
|
||
Total assets
|
$
|
567,004
|
|
|
$
|
460,364
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
9,128
|
|
|
$
|
14,059
|
|
Accrued outsourcing costs
|
39,359
|
|
|
31,853
|
|
||
Accrued compensation and benefits
|
16,444
|
|
|
16,695
|
|
||
Other accrued expenses
|
7,319
|
|
|
1,868
|
|
||
Deferred rent
|
783
|
|
|
707
|
|
||
Notes payable at fair value
|
—
|
|
|
15,899
|
|
||
Deferred revenue
|
13,627
|
|
|
12,350
|
|
||
Current portion of long-term debt
|
—
|
|
|
2,500
|
|
||
Total current liabilities
|
86,660
|
|
|
95,931
|
|
||
|
|
|
|
||||
Non-current liabilities
|
|
|
|
||||
Deferred rent
|
5,216
|
|
|
5,598
|
|
||
Deferred revenue
|
38,312
|
|
|
44,470
|
|
||
Long-term debt, net
|
134,245
|
|
|
93,376
|
|
||
Other non-current liabilities
|
946
|
|
|
1,246
|
|
||
Total non-current liabilities
|
178,719
|
|
|
144,690
|
|
||
Total liabilities
|
265,379
|
|
|
240,621
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value; 340,000,000 and 280,000,000 shares authorized as of March 31, 2019 and June 30, 2018, respectively, 221,548,492 and 211,289,922 shares issued and outstanding as of March 31, 2019 and June 30, 2018, respectively
|
221
|
|
|
211
|
|
||
Additional paid-in capital
|
1,440,913
|
|
|
1,286,000
|
|
||
Accumulated other comprehensive income (loss)
|
165
|
|
|
(461
|
)
|
||
Accumulated deficit
|
(1,139,674
|
)
|
|
(1,066,007
|
)
|
||
Total stockholders' equity
|
301,625
|
|
|
219,743
|
|
||
Total liabilities and stockholders' equity
|
$
|
567,004
|
|
|
$
|
460,364
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Product sales, net
|
$
|
35,078
|
|
|
$
|
—
|
|
|
$
|
71,784
|
|
|
$
|
—
|
|
Product royalties
|
937
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
||||
Collaboration and license revenue
|
19,493
|
|
|
41,616
|
|
|
101,121
|
|
|
72,993
|
|
||||
Reimbursement revenue
|
9,169
|
|
|
24,751
|
|
|
29,970
|
|
|
65,338
|
|
||||
Total revenue
|
64,677
|
|
|
66,367
|
|
|
204,136
|
|
|
138,331
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
1,042
|
|
|
—
|
|
|
2,023
|
|
|
—
|
|
||||
Research and development
|
65,541
|
|
|
71,348
|
|
|
183,211
|
|
|
180,881
|
|
||||
Selling, general and administrative
|
35,548
|
|
|
16,773
|
|
|
90,911
|
|
|
40,428
|
|
||||
Total operating expenses
|
102,131
|
|
|
88,121
|
|
|
276,145
|
|
|
221,309
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from operations
|
(37,454
|
)
|
|
(21,754
|
)
|
|
(72,009
|
)
|
|
(82,978
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
|
|
|
|
|
|
||||||||
Interest income
|
2,912
|
|
|
1,295
|
|
|
6,722
|
|
|
3,075
|
|
||||
Interest expense
|
(2,863
|
)
|
|
(2,361
|
)
|
|
(8,261
|
)
|
|
(8,407
|
)
|
||||
Loss on extinguishment and conversion of notes
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,457
|
)
|
||||
Change in fair value of notes payable
|
—
|
|
|
(100
|
)
|
|
(65
|
)
|
|
(200
|
)
|
||||
Other, net
|
(89
|
)
|
|
69
|
|
|
(54
|
)
|
|
69
|
|
||||
Total other income (expense), net
|
(40
|
)
|
|
(1,097
|
)
|
|
(1,658
|
)
|
|
(11,920
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(37,494
|
)
|
|
$
|
(22,851
|
)
|
|
$
|
(73,667
|
)
|
|
$
|
(94,898
|
)
|
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gain (loss) on marketable securities
|
274
|
|
|
(81
|
)
|
|
626
|
|
|
(681
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive loss
|
$
|
(37,220
|
)
|
|
$
|
(22,932
|
)
|
|
$
|
(73,041
|
)
|
|
$
|
(95,579
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – basic
|
219,913
|
|
|
208,994
|
|
|
215,964
|
|
|
194,434
|
|
||||
Weighted average shares outstanding – diluted
|
219,913
|
|
|
208,994
|
|
|
215,964
|
|
|
194,434
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss per share – basic
|
$
|
(0.17
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(0.49
|
)
|
Net loss per share – diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
|
|
|
||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
Three months ended March 31, 2019
|
|||||||||||||||||||||||
|
|
|
|
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Accumulated Deficit
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amounts
|
|
|
|
|
|||||||||||||||
Balance as of December 31, 2018
|
|
217,860
|
|
|
$
|
218
|
|
|
$
|
1,387,422
|
|
|
$
|
(109
|
)
|
|
$
|
(1,102,180
|
)
|
|
$
|
285,351
|
|
Shares issued for cash under employee share plans
|
|
2,091
|
|
|
1
|
|
|
11,413
|
|
|
—
|
|
|
—
|
|
|
11,414
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
8,321
|
|
|
—
|
|
|
—
|
|
|
8,321
|
|
|||||
Issuance of common stock, net of offering costs / At-the-market offering
|
|
1,597
|
|
|
2
|
|
|
33,757
|
|
|
—
|
|
|
—
|
|
|
33,759
|
|
|||||
Change in unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
274
|
|
|
—
|
|
|
274
|
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,494
|
)
|
|
(37,494
|
)
|
|||||
Balance as of March 31, 2019
|
|
221,548
|
|
|
$
|
221
|
|
|
$
|
1,440,913
|
|
|
$
|
165
|
|
|
$
|
(1,139,674
|
)
|
|
$
|
301,625
|
|
|
|||||||||||||||||||||||
Nine months ended March 31, 2019
|
|||||||||||||||||||||||
|
|
|
|
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Accumulated Deficit
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amounts
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2018
|
|
211,290
|
|
|
$
|
211
|
|
|
$
|
1,286,000
|
|
|
$
|
(461
|
)
|
|
$
|
(1,066,007
|
)
|
|
$
|
219,743
|
|
Shares issued for cash under employee share plans
|
|
3,008
|
|
|
3
|
|
|
13,731
|
|
|
—
|
|
|
—
|
|
|
13,734
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
18,663
|
|
|
—
|
|
|
—
|
|
|
18,663
|
|
|||||
Issuance of common stock, net of offering costs / At-the-market offering
|
|
7,250
|
|
|
7
|
|
|
122,519
|
|
|
—
|
|
|
—
|
|
|
122,526
|
|
|||||
Change in unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
626
|
|
|
—
|
|
|
626
|
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,667
|
)
|
|
(73,667
|
)
|
|||||
Balance as of March 31, 2019
|
|
221,548
|
|
|
$
|
221
|
|
|
$
|
1,440,913
|
|
|
$
|
165
|
|
|
$
|
(1,139,674
|
)
|
|
$
|
301,625
|
|
|
|||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
Three Months Ended March 31, 2018
|
|||||||||||||||||||||||
|
|
|
|
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Accumulated Deficit
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amounts
|
|
|
|
|
|||||||||||||||
Balance as of December 31, 2017
|
|
207,458
|
|
|
$
|
207
|
|
|
$
|
1,233,359
|
|
|
$
|
(676
|
)
|
|
$
|
(990,708
|
)
|
|
$
|
242,182
|
|
Shares issued for cash under employee share plans
|
|
816
|
|
|
1
|
|
|
3,670
|
|
|
—
|
|
|
—
|
|
|
3,671
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
4,719
|
|
|
—
|
|
|
—
|
|
|
4,719
|
|
|||||
Issuance of common stock, net of offering costs / At-the-market offering
|
|
2,230
|
|
|
2
|
|
|
37,508
|
|
|
—
|
|
|
—
|
|
|
37,510
|
|
|||||
Change in unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
(81
|
)
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,851
|
)
|
|
(22,851
|
)
|
|||||
Balance as of March 31, 2018
|
|
210,504
|
|
|
$
|
210
|
|
|
$
|
1,279,256
|
|
|
$
|
(757
|
)
|
|
$
|
(1,013,559
|
)
|
|
$
|
265,150
|
|
|
|||||||||||||||||||||||
Nine Months Ended March 31, 2018
|
|||||||||||||||||||||||
|
|
|
|
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Accumulated Deficit
|
|
Total
|
|||||||||||
|
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amounts
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2017
|
|
171,308
|
|
|
$
|
171
|
|
|
$
|
930,293
|
|
|
$
|
(76
|
)
|
|
$
|
(918,661
|
)
|
|
$
|
11,727
|
|
Shares issued for cash under employee share plans
|
|
3,703
|
|
|
3
|
|
|
18,271
|
|
|
—
|
|
|
—
|
|
|
18,274
|
|
|||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
13,538
|
|
|
—
|
|
|
—
|
|
|
13,538
|
|
|||||
Issuance of common stock, net of offering costs / At-the-market offering
|
|
2,554
|
|
|
3
|
|
|
40,337
|
|
|
—
|
|
|
—
|
|
|
40,340
|
|
|||||
Issuance of common stock, net of offering costs / Public offering
|
|
24,070
|
|
|
24
|
|
|
242,994
|
|
|
—
|
|
|
—
|
|
|
243,018
|
|
|||||
Extinguishment of 2020 Notes
|
|
7,956
|
|
|
8
|
|
|
(15,705
|
)
|
|
—
|
|
|
—
|
|
|
(15,697
|
)
|
|||||
Conversion of 2020 Notes
|
|
913
|
|
|
1
|
|
|
5,418
|
|
|
—
|
|
|
—
|
|
|
5,419
|
|
|||||
Issuance of 2024 Notes
|
|
—
|
|
|
—
|
|
|
44,110
|
|
|
—
|
|
|
—
|
|
|
44,110
|
|
|||||
Change in unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(681
|
)
|
|
—
|
|
|
(681
|
)
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94,898
|
)
|
|
(94,898
|
)
|
|||||
Balance as of March 31, 2018
|
|
210,504
|
|
|
$
|
210
|
|
|
$
|
1,279,256
|
|
|
$
|
(757
|
)
|
|
$
|
(1,013,559
|
)
|
|
$
|
265,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
Nine Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net loss
|
$
|
(73,667
|
)
|
|
$
|
(94,898
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
1,606
|
|
|
1,700
|
|
||
Non-cash interest expense
|
4,593
|
|
|
4,931
|
|
||
Share-based compensation expense
|
18,663
|
|
|
13,538
|
|
||
Loss on extinguishment and conversion of Notes
|
—
|
|
|
6,457
|
|
||
Realized gain or loss on investments, net
|
(36
|
)
|
|
—
|
|
||
Change in fair value of notes payable
|
65
|
|
|
200
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
424
|
|
|
(12,879
|
)
|
||
Prepaid expenses and other assets
|
(41,525
|
)
|
|
(1,098
|
)
|
||
Accounts payable and other accrued expenses
|
(447
|
)
|
|
4,291
|
|
||
Accrued outsourcing costs
|
7,506
|
|
|
2,946
|
|
||
Accrued compensation and benefits
|
882
|
|
|
173
|
|
||
Deferred rent
|
(305
|
)
|
|
134
|
|
||
Deferred revenue
|
(4,881
|
)
|
|
(17,117
|
)
|
||
Other non-current liabilities
|
(304
|
)
|
|
468
|
|
||
Net cash used in operating activities
|
(87,426
|
)
|
|
(91,154
|
)
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Purchases of property and equipment
|
(1,455
|
)
|
|
(1,122
|
)
|
||
Proceeds from investment
|
35
|
|
|
—
|
|
||
Purchases of marketable securities
|
(390,146
|
)
|
|
(395,369
|
)
|
||
Proceeds from sales and maturities of marketable securities
|
306,978
|
|
|
138,241
|
|
||
Net cash used in investing activities
|
(84,588
|
)
|
|
(258,250
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from issuance of common stock / Public offering
|
—
|
|
|
258,750
|
|
||
Offering costs for issuance of common stock / Public offering
|
—
|
|
|
(15,732
|
)
|
||
Proceeds from issuance of common stock / At-the-market offering
|
125,043
|
|
|
41,216
|
|
||
Offering costs for the issuance of common stock / At-the-market offering
|
(2,517
|
)
|
|
(876
|
)
|
||
Net proceeds from employee stock purchases and options exercised
|
12,600
|
|
|
18,274
|
|
||
Payment of note payable
|
(15,000
|
)
|
|
—
|
|
||
Proceeds from the modification of long-term debt, net
|
33,776
|
|
|
—
|
|
||
Payment for debt issuance costs
|
—
|
|
|
(4,306
|
)
|
||
Net cash provided by financing activities
|
153,902
|
|
|
297,326
|
|
||
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(18,112
|
)
|
|
(52,078
|
)
|
||
Cash and cash equivalents at beginning of period
|
114,748
|
|
|
125,933
|
|
||
Cash and cash equivalents at end of period
|
$
|
96,636
|
|
|
$
|
73,855
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
3,650
|
|
|
$
|
2,260
|
|
Change in unrealized loss on marketable securities
|
$
|
626
|
|
|
$
|
(681
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
March 31,
|
|
March 31,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Loxo Oncology
|
—
|
%
|
|
3.6
|
%
|
|
22.7
|
%
|
|
5.9
|
%
|
Pierre Fabre
|
19.0
|
%
|
|
9.2
|
%
|
|
19.9
|
%
|
|
10.6
|
%
|
Novartis Pharmaceutical
|
14.2
|
%
|
|
37.3
|
%
|
|
14.7
|
%
|
|
47.2
|
%
|
ASLAN
|
—
|
%
|
|
34.7
|
%
|
|
—
|
%
|
|
16.6
|
%
|
Total
|
33.2
|
%
|
|
84.8
|
%
|
|
57.3
|
%
|
|
80.3
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
North America
|
$
|
37,877
|
|
|
$
|
4,682
|
|
|
$
|
126,102
|
|
|
$
|
14,845
|
|
Europe
|
21,461
|
|
|
33,744
|
|
|
70,596
|
|
|
82,892
|
|
||||
Asia Pacific and Other
|
5,339
|
|
|
27,941
|
|
|
7,438
|
|
|
40,594
|
|
||||
Total
|
$
|
64,677
|
|
|
$
|
66,367
|
|
|
$
|
204,136
|
|
|
$
|
138,331
|
|
|
March 31, 2019
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Short-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
$
|
123,149
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
123,146
|
|
Commercial paper
|
110,478
|
|
|
—
|
|
|
—
|
|
|
110,478
|
|
||||
Corporate bonds
|
61,713
|
|
|
60
|
|
|
—
|
|
|
61,773
|
|
||||
Asset-backed securities
|
30,727
|
|
|
32
|
|
|
—
|
|
|
30,759
|
|
||||
Mutual fund securities
|
296
|
|
|
—
|
|
|
—
|
|
|
296
|
|
||||
|
326,363
|
|
|
92
|
|
|
(3
|
)
|
|
326,452
|
|
||||
Long-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
32,421
|
|
|
44
|
|
|
—
|
|
|
32,465
|
|
||||
Asset-backed securities
|
22,721
|
|
|
32
|
|
|
—
|
|
|
22,753
|
|
||||
Mutual fund securities
|
790
|
|
|
—
|
|
|
—
|
|
|
790
|
|
||||
|
55,932
|
|
|
76
|
|
|
—
|
|
|
56,008
|
|
||||
Total
|
$
|
382,295
|
|
|
$
|
168
|
|
|
$
|
(3
|
)
|
|
$
|
382,460
|
|
|
June 30, 2018
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Short-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
$
|
297,965
|
|
|
$
|
—
|
|
|
$
|
(461
|
)
|
|
$
|
297,504
|
|
Mutual fund securities
|
235
|
|
|
—
|
|
|
—
|
|
|
235
|
|
||||
|
298,200
|
|
|
—
|
|
|
(461
|
)
|
|
297,739
|
|
||||
Long-term available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
919
|
|
|
—
|
|
|
—
|
|
|
919
|
|
||||
|
919
|
|
|
—
|
|
|
—
|
|
|
919
|
|
||||
Total
|
$
|
299,119
|
|
|
$
|
—
|
|
|
$
|
(461
|
)
|
|
$
|
298,658
|
|
|
Amortized
|
|
Fair
|
||||
|
Cost
|
|
Value
|
||||
Due in one year or less
|
$
|
326,067
|
|
|
$
|
326,156
|
|
Due in one to three years
|
55,142
|
|
|
55,218
|
|
||
Total
|
$
|
381,209
|
|
|
$
|
381,374
|
|
|
|
Three Months Ended
March 31, 2019 |
|
Nine Months Ended
March 31, 2019 |
||||
BRAFTOVI
|
|
$
|
17,351
|
|
|
$
|
35,737
|
|
MEKTOVI
|
|
17,727
|
|
|
36,047
|
|
||
Total net product sales
|
|
$
|
35,078
|
|
|
$
|
71,784
|
|
|
|
Returns
|
Other
|
Total
|
||||||
Balance as of June 30, 2018
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Allowances for sales during prior periods
|
|
—
|
|
—
|
|
—
|
|
|||
Allowances for sales during the current period
|
|
129
|
|
14,592
|
|
14,721
|
|
|||
Credits/deductions issued for prior year sales
|
|
—
|
|
—
|
|
—
|
|
|||
Credits/deductions issued for sales during the current period
|
|
(26
|
)
|
(9,507
|
)
|
(9,533
|
)
|
|||
Balance as of March 31, 2019
|
|
$
|
103
|
|
$
|
5,085
|
|
$
|
5,188
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
March 31,
|
|
March 31,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Product royalties
|
|
|
|
|
|
|
|
|||||||||
Pierre Fabre
|
|
$
|
835
|
|
|
$
|
—
|
|
|
$
|
1,159
|
|
|
$
|
—
|
|
Ono
|
|
102
|
|
|
—
|
|
|
102
|
|
|
—
|
|
||||
Total product royalties
|
|
$
|
937
|
|
|
$
|
—
|
|
|
$
|
1,261
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Collaboration and other revenue
|
|
|
|
|
|
|
|
|||||||||
Pierre Fabre
|
|
$
|
10,704
|
|
|
$
|
5,347
|
|
|
$
|
22,160
|
|
|
$
|
12,370
|
|
Mirati
|
|
1,500
|
|
|
1,376
|
|
|
3,710
|
|
|
4,187
|
|
||||
Loxo
|
|
—
|
|
|
2,416
|
|
|
2,403
|
|
|
7,069
|
|
||||
Other partners
|
|
561
|
|
|
974
|
|
|
3,050
|
|
|
3,003
|
|
||||
Total collaboration and other revenue
|
|
12,765
|
|
|
10,113
|
|
|
31,323
|
|
|
26,629
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
License and milestone revenue
|
|
|
|
|
|
|
|
|
||||||||
Loxo
|
|
—
|
|
|
—
|
|
|
44,000
|
|
|
1,107
|
|
||||
Pierre Fabre
|
|
750
|
|
|
750
|
|
|
17,250
|
|
|
2,250
|
|
||||
Ono
|
|
4,596
|
|
|
4,665
|
|
|
6,433
|
|
|
6,502
|
|
||||
ASLAN
|
|
—
|
|
|
23,000
|
|
|
—
|
|
|
23,000
|
|
||||
Asahi Kasei
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
||||
Other partners
|
|
1,382
|
|
|
3,088
|
|
|
2,115
|
|
|
3,505
|
|
||||
Total license and milestone revenue
|
|
6,728
|
|
|
31,503
|
|
|
69,798
|
|
|
46,364
|
|
||||
Total collaboration and license revenue
|
|
$
|
19,493
|
|
|
$
|
41,616
|
|
|
$
|
101,121
|
|
|
$
|
72,993
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reimbursement revenue
|
|
|
|
|
|
|
|
|
||||||||
Novartis
|
|
$
|
9,169
|
|
|
$
|
24,751
|
|
|
$
|
29,970
|
|
|
$
|
65,338
|
|
|
March 31,
|
|
June 30,
|
||||
|
2019
|
|
2018
|
||||
Ono
|
$
|
24,799
|
|
|
$
|
27,555
|
|
Pierre Fabre (1)
|
26,098
|
|
|
22,394
|
|
||
Mirati
|
1,042
|
|
|
2,468
|
|
||
Loxo
|
—
|
|
|
2,403
|
|
||
Other
|
—
|
|
|
2,000
|
|
||
Total deferred revenue
|
51,939
|
|
|
56,820
|
|
||
Less: Current portion
|
(13,627
|
)
|
|
(12,350
|
)
|
||
Deferred revenue, non-current portion
|
$
|
38,312
|
|
|
$
|
44,470
|
|
|
March 31,
|
|
June 30,
|
||||
|
2019
|
|
2018
|
||||
Notes payable at fair value
|
$
|
—
|
|
|
$
|
15,899
|
|
|
|
|
|
||||
2024 convertible senior notes
|
$
|
126,060
|
|
|
$
|
126,060
|
|
Silicon Valley Bank term loan (1)
|
53,500
|
|
|
16,200
|
|
||
Long-term debt, gross
|
179,560
|
|
|
142,260
|
|
||
Less: Unamortized debt discount and fees
|
(45,315
|
)
|
|
(46,384
|
)
|
||
Long-term debt, net
|
134,245
|
|
|
95,876
|
|
||
Less: Current portion
|
—
|
|
|
(2,500
|
)
|
||
Long-term debt, non-current portion
|
$
|
134,245
|
|
|
$
|
93,376
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Silicon Valley Bank Term Loan
|
|
|
|
|
|
|
|
||||||||
Simple interest
|
431
|
|
|
100
|
|
|
$
|
1,115
|
|
|
$
|
280
|
|
||
Amortization of prepaid fees for line of credit
|
—
|
|
|
14
|
|
|
29
|
|
|
99
|
|
||||
Amortization of debt discount
|
257
|
|
|
80
|
|
|
688
|
|
|
242
|
|
||||
Total interest expense on Silicon Valley Bank term loan
|
688
|
|
|
194
|
|
|
1,832
|
|
|
621
|
|
||||
Convertible Senior Notes (1)
|
|
|
|
|
|
|
|
||||||||
Contractual interest
|
835
|
|
|
835
|
|
|
2,505
|
|
|
2,723
|
|
||||
Amortization of debt discount
|
1,257
|
|
|
1,141
|
|
|
3,682
|
|
|
4,432
|
|
||||
Amortization of debt issuance costs
|
76
|
|
|
69
|
|
|
223
|
|
|
257
|
|
||||
Total interest expense on convertible senior notes
|
2,168
|
|
|
2,045
|
|
|
6,410
|
|
|
7,412
|
|
||||
Other Debt
|
|
|
|
|
|
|
|
||||||||
Simple interest
|
7
|
|
|
122
|
|
|
19
|
|
|
374
|
|
||||
Total interest expense on other debt
|
7
|
|
|
122
|
|
|
19
|
|
|
374
|
|
||||
Total interest expense
|
$
|
2,863
|
|
|
$
|
2,361
|
|
|
$
|
8,261
|
|
|
$
|
8,407
|
|
•
|
Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.
|
•
|
Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.
|
•
|
Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.
|
|
|
Fair Value Measurement as of March 31, 2019
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
—
|
|
|
$
|
123,146
|
|
|
$
|
—
|
|
|
$
|
123,146
|
|
Commercial paper
|
|
—
|
|
|
110,478
|
|
|
—
|
|
|
110,478
|
|
||||
Corporate bonds
|
|
—
|
|
|
61,773
|
|
|
—
|
|
|
61,773
|
|
||||
Asset-backed securities
|
|
—
|
|
|
30,759
|
|
|
—
|
|
|
30,759
|
|
||||
Mutual fund securities
|
|
296
|
|
|
—
|
|
|
—
|
|
|
296
|
|
||||
Non-current Assets
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
|
—
|
|
|
32,465
|
|
|
—
|
|
|
32,465
|
|
||||
Asset-back securities
|
|
—
|
|
|
22,753
|
|
|
—
|
|
|
22,753
|
|
||||
Mutual fund securities
|
|
790
|
|
|
—
|
|
|
—
|
|
|
790
|
|
||||
Total assets
|
|
$
|
1,086
|
|
|
$
|
381,374
|
|
|
$
|
—
|
|
|
$
|
382,460
|
|
|
|
Fair Value Measurement as of June 30, 2018
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current Assets
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities
|
|
$
|
297,504
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297,504
|
|
Mutual fund securities
|
|
235
|
|
|
|
|
|
—
|
|
|
235
|
|
||||
Non-current Assets
|
|
|
|
|
|
|
|
|
||||||||
Mutual fund securities
|
|
919
|
|
|
—
|
|
|
—
|
|
|
919
|
|
||||
Total assets
|
|
$
|
298,658
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298,658
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Notes payable, at fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,899
|
|
|
$
|
15,899
|
|
|
|
Three Months Ended March 31, 2019
|
|
Nine Months Ended March 31, 2019
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Beginning balance
|
|
$
|
—
|
|
|
$
|
12,700
|
|
|
$
|
15,899
|
|
|
$
|
12,600
|
|
Change in fair value
|
|
—
|
|
|
100
|
|
|
65
|
|
|
200
|
|
||||
Settlement upon maturity
|
|
—
|
|
|
|
|
(15,964
|
)
|
|
—
|
|
|||||
Ending balance
|
|
$
|
—
|
|
|
$
|
12,800
|
|
|
$
|
—
|
|
|
$
|
12,800
|
|
•
|
Risk-free interest rate - We determine the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.
|
•
|
Expected term - We estimate the expected term of our options based upon historical exercises and post-vesting termination behavior.
|
•
|
Expected volatility - We estimate expected volatility using daily historical trading data of our common stock.
|
•
|
Dividend yield - We have never paid dividends and currently have no plans to do so; therefore, no dividend yield is applied.
|
|
Nine Months Ended March 31, 2019
|
||
|
2019
|
|
2018
|
Risk-free interest rate
|
2.5% - 3.0%
|
|
1.6% - 2.4%
|
Expected option term in years
|
3.8 - 5.1
|
|
3.8 - 4.1
|
Expected volatility
|
63.5% - 67.0%
|
|
66.1% - 67.3%
|
Dividend yield
|
0%
|
|
0%
|
Weighted average grant date fair value
|
$9.07
|
|
$5.81
|
|
Number of RSUs
|
|
Weighted
Average Grant Date Fair Value |
|||
Unvested at June 30, 2018
|
959,730
|
|
|
$
|
9.28
|
|
Granted
|
617,518
|
|
|
15.87
|
|
|
Vested
|
(252,108
|
)
|
|
10.46
|
|
|
Forfeited
|
(64,845
|
)
|
|
12.20
|
|
|
Unvested at March 31, 2019
|
1,260,295
|
|
|
$
|
12.12
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net loss - basic and diluted
|
$
|
(37,494
|
)
|
|
$
|
(22,851
|
)
|
|
$
|
(73,667
|
)
|
|
$
|
(94,898
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic and diluted
|
219,913
|
|
|
208,994
|
|
|
215,964
|
|
|
194,434
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Per share data:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
$
|
(0.17
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(0.49
|
)
|
|
March 31,
|
||||
|
2019
|
|
2018
|
||
2.625% convertible senior notes
|
8,156
|
|
|
8,156
|
|
Stock options
|
16,294
|
|
|
15,722
|
|
Unvested RSUs
|
1,260
|
|
|
1,275
|
|
Total anti-dilutive common stock equivalents excluded from diluted loss per share calculation
|
25,710
|
|
|
25,153
|
|
|
Drug Candidate
|
|
Target/Disease State
|
|
Partner
|
|
Clinical Status
|
|
BRAFTOVI + MEKTOVI
|
|
BRAF and MEK inhibitors for advanced
BRAF
-mutant melanoma
|
|
Pierre Fabre Medicament SAS and Ono Pharmaceutical Co., Ltd.
|
|
Approved
|
|
Encorafenib
|
|
BRAF inhibitor for
BRAF
-mutant CRC
|
|
Pierre Fabre Medicament SAS and Ono Pharmaceutical Co., Ltd.
|
|
Phase 3
|
|
Binimetinib
|
|
MEK inhibitor for
BRAF
-mutant CRC and other cancers
|
|
Pierre Fabre Medicament SAS and Ono Pharmaceutical Co., Ltd.
|
|
Phase 3
|
|
Vitrakvi / Larotrectinib (1)(2)
|
|
PanTrk inhibitor for cancer
|
|
Bayer AG
|
|
Approved
|
|
Ganovo / Danoprevir (1)
|
|
Protease inhibitor for Hepatitis C virus
|
|
Roche Holding AG
|
|
Approved (3)
|
|
Selumetinib (1)
|
|
MEK inhibitor for NF1 (4)
|
|
AstraZeneca, PLC
|
|
Phase 2 / Registration Trial
|
|
Tucatinib / ONT-380 (1)
|
|
HER2 inhibitor for breast cancer
|
|
Seattle Genetics, Inc.
|
|
Phase 2 / Registration Trial
|
|
|
|
|
|
|
|
|
|
Ipatasertib / GDC-0068 (1)
|
|
AKT inhibitor for cancer
|
|
Genentech, Inc.
|
|
Phase 3
|
|
Varlitinib / ASLAN001 (1)
|
|
Pan-HER2 inhibitor for cancer
|
|
ASLAN Pharmaceuticals Pte Ltd.
|
|
Phase 2 / 3
|
|
ARRY-797
|
|
p38 inhibitor for Lamin A/C-related dilated cardiomyopathy
|
|
Wholly-owned by Array
|
|
Phase 3
|
|
|
|
|
|
|
|
|
|
LOXO-292 (1)
|
|
Ret inhibitor for cancer
|
|
Eli Lilly and Company
|
|
Phase 2 / Registration Trial
|
|
ARRY-382
|
|
CSF1R inhibitor for cancer
|
|
Wholly-owned by Array
|
|
Phase 2
|
|
Motolimod / VTX-2337 (1)
|
|
Toll-like receptor for cancer
|
|
Celgene Corp. / VentiRx Pharmaceuticals, Inc.
|
|
Phase 2
|
|
LOXO-195 (1)
|
|
Trk inhibitor for cancer
|
|
Bayer AG
|
|
Phase 1 / 2
|
|
AK-1830 (1)
|
|
TrkA selective inhibitor for inflammation and pain
|
|
Asahi Kasei Pharma Corporation
|
|
Phase 1
|
|
MRTX849 (1)
|
|
KRAS G12C inhibitor for cancer
|
|
Mirati Therapeutics, Inc.
|
|
Phase 1 / 2
|
|
Three Months Ended
|
|
Change
|
|
Nine Months Ended
|
|
Change
|
||||||||||||||||||||||
|
March 31,
|
|
2019 vs. 2018
|
|
March 31,
|
|
2019 vs. 2018
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Product sales, net
|
$
|
35,078
|
|
|
$
|
—
|
|
|
$
|
35,078
|
|
|
(a)
|
|
|
$
|
71,784
|
|
|
$
|
—
|
|
|
$
|
71,784
|
|
|
(a)
|
|
Product royalties
|
937
|
|
|
—
|
|
|
$
|
937
|
|
|
(a)
|
|
|
1,261
|
|
|
—
|
|
|
$
|
1,261
|
|
|
(a)
|
|
||||
Collaboration and license revenue
|
19,493
|
|
|
41,616
|
|
|
(22,123
|
)
|
|
(53
|
)%
|
|
101,121
|
|
|
72,993
|
|
|
28,128
|
|
|
39
|
%
|
||||||
Reimbursement revenue
|
9,169
|
|
|
24,751
|
|
|
(15,582
|
)
|
|
(63
|
)%
|
|
29,970
|
|
|
65,338
|
|
|
(35,368
|
)
|
|
(54
|
)%
|
||||||
Total revenue
|
$
|
64,677
|
|
|
$
|
66,367
|
|
|
$
|
(1,690
|
)
|
|
(3
|
)%
|
|
$
|
204,136
|
|
|
$
|
138,331
|
|
|
$
|
65,805
|
|
|
48
|
%
|
|
Three Months Ended
|
|
Change
|
|
Nine Months Ended
|
|
Change
|
||||||||||||||||||||||
|
March 31,
|
|
2019 vs. 2018
|
|
March 31,
|
|
2019 vs. 2018
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Cost of goods sold
|
$
|
1,042
|
|
|
$
|
—
|
|
|
$
|
1,042
|
|
|
(a)
|
|
|
$
|
2,023
|
|
|
$
|
—
|
|
|
$
|
2,023
|
|
|
(a)
|
|
Research and development
|
65,541
|
|
|
71,348
|
|
|
(5,807
|
)
|
|
(8
|
)%
|
|
183,211
|
|
|
180,881
|
|
|
2,330
|
|
|
1
|
%
|
||||||
Selling, general and administrative
|
35,548
|
|
|
16,773
|
|
|
18,775
|
|
|
112
|
%
|
|
90,911
|
|
|
40,428
|
|
|
50,483
|
|
|
125
|
%
|
||||||
Total operating expenses
|
$
|
102,131
|
|
|
$
|
88,121
|
|
|
$
|
14,010
|
|
|
16
|
%
|
|
$
|
276,145
|
|
|
$
|
221,309
|
|
|
$
|
54,836
|
|
|
25
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of goods sold to Customers
|
$
|
828
|
|
|
$
|
—
|
|
|
$
|
1,544
|
|
|
$
|
—
|
|
Cost of goods sold to international partners under product supply agreements
|
4
|
|
|
—
|
|
|
81
|
|
|
—
|
|
||||
Royalty expense
|
210
|
|
|
—
|
|
|
398
|
|
|
—
|
|
||||
Total cost of goods sold
|
$
|
1,042
|
|
|
$
|
—
|
|
|
$
|
2,023
|
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Change
|
|
Nine Months Ended
|
|
Change
|
||||||||||||||||||||||
|
March 31,
|
|
2019 vs. 2018
|
|
March 31,
|
|
2019 vs. 2018
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|
2019
|
|
2018
|
|
$
|
|
%
|
||||||||||||||
Interest income
|
$
|
2,912
|
|
|
$
|
1,295
|
|
|
$
|
1,617
|
|
|
125
|
%
|
|
$
|
6,722
|
|
|
$
|
3,075
|
|
|
$
|
3,647
|
|
|
119
|
%
|
Interest expense
|
(2,863
|
)
|
|
(2,361
|
)
|
|
(502
|
)
|
|
21
|
%
|
|
(8,261
|
)
|
|
(8,407
|
)
|
|
146
|
|
|
(2
|
)%
|
||||||
Loss on extinguishment and conversion of notes
|
—
|
|
|
—
|
|
|
—
|
|
|
(a)
|
|
|
—
|
|
|
(6,457
|
)
|
|
6,457
|
|
|
(a)
|
|
||||||
Change in fair value of notes payable
|
—
|
|
|
(100
|
)
|
|
100
|
|
|
(100
|
)%
|
|
(65
|
)
|
|
(200
|
)
|
|
135
|
|
|
(68
|
)%
|
||||||
Other, net
|
(89
|
)
|
|
69
|
|
|
(158
|
)
|
|
(229
|
)%
|
|
(54
|
)
|
|
69
|
|
|
(123
|
)
|
|
(178
|
)%
|
||||||
Total other income (expense), net
|
$
|
(40
|
)
|
|
$
|
(1,097
|
)
|
|
$
|
1,057
|
|
|
(96
|
)%
|
|
$
|
(1,658
|
)
|
|
$
|
(11,920
|
)
|
|
$
|
10,262
|
|
|
(86
|
)%
|
|
March 31, 2019
|
|
June 30, 2018
|
|
$ Change
|
||||||
Cash and cash equivalents
|
$
|
96,636
|
|
|
$
|
114,748
|
|
|
$
|
(18,112
|
)
|
Marketable securities – current
|
326,452
|
|
|
297,739
|
|
|
28,713
|
|
|||
Marketable securities – non-current
|
56,008
|
|
|
919
|
|
|
55,089
|
|
|||
Total
|
$
|
479,096
|
|
|
$
|
413,406
|
|
|
$
|
65,690
|
|
|
Nine Months Ended
March 31, |
|
|
||||||||
|
2019
|
|
2018
|
|
$ Change
|
||||||
Cash flows provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
(87,426
|
)
|
|
$
|
(91,154
|
)
|
|
$
|
3,728
|
|
Investing activities
|
(84,588
|
)
|
|
(258,250
|
)
|
|
173,662
|
|
|||
Financing activities
|
153,902
|
|
|
297,326
|
|
|
(143,424
|
)
|
|||
Total
|
$
|
(18,112
|
)
|
|
$
|
(52,078
|
)
|
|
$
|
33,966
|
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit Number
|
|
Description of Exhibit
|
|
Form
|
|
File No.
|
|
Date Filed
|
3.1
|
|
|
10-Q
|
|
001-16633
|
|
10/30/18
|
|
3.2
|
|
|
10-Q
|
|
001-16633
|
|
2/6/2018
|
|
4.1
|
|
|
S-1/A
|
|
333-45922
|
|
10/27/2000
|
|
4.2
|
|
|
8-K
|
|
001-16633
|
|
12/4/2017
|
|
4.3
|
|
|
8-K
|
|
001-16633
|
|
12/4/2017
|
|
5.1
|
|
|
Filed herewith
|
|||||
10.1
|
|
|
Filed herewith
|
|||||
10.2
|
|
|
Filed herewith
|
|||||
31.1
|
|
|
Filed herewith
|
|||||
31.2
|
|
|
Filed herewith
|
|||||
32.1
|
|
|
Furnished herewith
|
|||||
101.INS
|
|
XBRL Instance Document
|
|
Filed herewith
|
||||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
Filed herewith
|
||||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith
|
||||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
Filed herewith
|
||||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith
|
||||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith
|
By:
|
/s/ RON SQUARER
|
|
Ron Squarer
|
|
Chief Executive Officer
|
|
|
|
|
By:
|
/s/ JASON HADDOCK
|
|
Jason Haddock
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
Employee
Curtis Oltmans
/s/ CURTIS OLTMANS
|
Array BioPharma Inc.
By: Ron Squarer, Chief Executive Officer
/s/ RON SQUARER
|
Date: March 19, 2019
|
Date: March 19, 2019
|
(A)
|
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“
OFAC
”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authorities, including, without limitation, designation on OFAC’s Specially Designated Nationals and Blocked Persons List or OFAC’s Foreign Sanctions Evaders List (as amended, collectively, “
Sanctions
”), nor
|
(B)
|
located, organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings with that country or territory (including, without limitation, Cuba, Iran, North Korea, Syria and the Crimea Region of the Ukraine) (the “
Sanctioned Countries
”).
|
(A)
|
to knowingly fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions or is a Sanctioned Country; or
|
(B)
|
in any other manner that will knowingly result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
|
and:
Jefferies LLC 520 Madison Avenue New York, NY 10022 Attention: |
Shanna B. Green
Facsimile: (646) 786-5719 |
with a copy to:
Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, NY 10017 Attention: |
John C. Ericson, Esq.
Facsimile: (212) 455-2502 |
and if to the Company, shall be delivered to:
Array BioPharma Inc. 3200 Walnut Street Boulder, Colorado 80301 Attention: |
|
with a copy to:
Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, NY 10036-6522 Attention: |
Ryan J. Dzierniejko, Esq. and John Zelenbaba, Esq.
Facsimile: (917) 777-3712 and (416) 777-4785 |
By:
|
/s/ Jason Haddock
Name: Jason Haddock Title: Chief Financial Officer |
By:
|
/s/ Donald Lynaugh
Name: Donald Lynaugh Title: Managing Director |
From:
|
Array BioPharma Inc.
|
To:
|
Jefferies LLC
Attention: |
Subject:
|
Placement Notice
|
Date:
|
[•], 20[•]
|
(a)
|
To our knowledge, Exhibit A provides a complete and accurate list of all patent and patent applications that are owned (solely or jointly) by the Company or have been exclusively licensed to the Company directed to the small molecule therapeutic compounds Binimetinib, Encorafenib, and Selumetinib. To our knowledge, (i) there is no legal or governmental proceeding pending relating to any of the Company Patent Rights or any other proprietary information or materials of the Company, or the Company’s rights in any of the foregoing, and (ii) no such proceedings are threatened or contemplated by governmental authorities or others. To our knowledge, none of the Company Patent Rights have lapsed or been abandoned except where such lapse or abandonment would not have a material adverse effect on the Company.
|
(b)
|
To our knowledge, Exhibit B provides a complete and accurate list of all trademarks and trademark applications that are owned by the Company directed to the small molecule therapeutic compounds Binimetinib and Encorafenib. To our knowledge, (i) there is no legal or governmental proceeding pending relating to any of the Company Trademark Rights, and (ii) no such proceedings are threatened or contemplated by governmental authorities or others, with the exception of two Oppositions: one of these oppositions relates to the application of the BALIMEK mark in Argentina and this opposition has been resolved with a settlement agreement though it has not yet been officially dismissed yet; and the other relates to the application of the MEKTOVI mark in Paraguay, which has been opposed by a company that owns a prior registration of the mark MENTOVICK and settlement discussions have been proposed. To our knowledge, none of the Company Trademark Rights have lapsed or been abandoned except where such lapse or abandonment would not have a material adverse effect on the Company.
|
(c)
|
We have no knowledge of any contracts or other documents relating to the Company Patent Rights or Company Trademark Rights that are of a character required by law to be described in the Registration Statement or the Prospectus or to be filed as an exhibit to the Registration Statement which have not been so described or filed as required.
|
(d)
|
To our knowledge, (i) the Company has not infringed or otherwise violated, is not infringing or otherwise violating, and, upon the commercialization and sale of the small molecule products Binimetinib, Encorafenib, and Selumetinib described in the Registration Statement, and the Prospectus as under development, the Company would not infringe or otherwise violate any United States patents of others, and we are not aware of any facts which would form a reasonable basis for a claim of any such infringement or other violation, and (ii) there is no infringement or other violation by others in the United States of any of the patents set forth in Exhibit A, and we are not aware of any facts which would form a reasonable basis for a claim of any such infringement or violation.
|
(e)
|
To our knowledge, the Company is the sole or joint owner of the Company Patent Rights, or the Company has exclusively licensed the Company Patent Rights, and (i) we have no knowledge that the Company lacks or will be unable to obtain any rights or licenses to use all patents and other intellectual property or other intangible property or assets that are, or would be, necessary to conduct the business now conducted or proposed to be conducted by the Company as described in the Registration Statement or the Prospectus, except as described in the Registration Statement and the Prospectus, specifically with respect to this letter, the development, commercialization and sale of small molecule products or services, including Binimetinib and Encorafenib and (ii) we are unaware of any facts which form a basis for a finding of unenforceability or invalidity of any of the Company Patent Rights or other material intellectual property owned or licensed by the Company.
|
(f)
|
With respect to the Company Patent Rights, to our knowledge we have complied with the required duty of candor and good faith in dealing with the USPTO, including the duty to disclose to the USPTO all information actually known by us to be material to the patentability of any applicable patent application.
|
(g)
|
We are not aware of any fact with respect to any of the patent applications that are Company Patent Rights that (i) would preclude the issuance of patents with respect to such applications, (ii) would lead such counsel to conclude that any such patents, when issued, would not be valid and enforceable in accordance with applicable regulations or (iii) would result in any third party having any rights in any patents issuing from such patent applications.
|
(h)
|
To our knowledge, there are no pending or threatened interference or opposition proceedings, or any other proceedings arising under the Leahy-Smith America Invents Act relating to the Company Patent Rights.
|
(i)
|
The information in the Intellectual Property Portion, insofar as it relates to our Representation and insofar as it constitutes statements of matters of law or summaries of legal matters and documents to which the Company is a party or legal proceedings, has been reviewed by us and fairly states or summarizes and presents such matters in all material respects.
|
(a)
|
To my knowledge, the activities of the Company with respect to the commercialization of its product candidates, or the manufacture, use or sale or offer for sale thereof, do not infringe the patent of any third party.
|
(b)
|
To my knowledge, no Patent that has issued or, after due prosecution will be issued in respect of any Application, is or would be invalid or unenforceable.
|
(c)
|
I have complied, and to my knowledge, my firm and the Company have complied with the United States Patent and Trademark Office’s duty of candor and disclosure for the Applications in the United States (“
U.S. Applications
”) and have made no material misrepresentation during the prosecution of any Application.
|
(d)
|
I am not aware of any material fact with respect to the Applications that, after due prosecution, would preclude the issuance of patents with respect to such Applications.
|
(e)
|
To my knowledge, the Company is the sole owner or joint owner of each Application and Patent set forth on Exhibit A. The Applications and Patents from Exhibit A that are also set forth on Exhibit B have been assigned to Yarra Therapeutics, Inc. a wholly owned subsidiary of Array BioPharma Inc.
|
(f)
|
To my knowledge, there are no pending or threatened interference or opposition proceedings, or any other proceedings arising under the Leahy–Smith America Invents Act relating to the U.S. Applications set forth on Exhibit A, and there are no pending or threatened reexamination proceedings with respect to the U.S. Patents set forth on Exhibit A.
|
(g)
|
In addition to the assumptions, qualifications, exceptions and limitations elsewhere set forth in this opinion letter, the statements expressed above are also subject to the effect of: (1) bankruptcy, insolvency, reorganization, receivership, moratorium and other laws affecting creditors’ rights (including, without limitation, the effect of statutory and other law regarding fraudulent conveyances, fraudulent transfers and preferential transfers); and (2) the exercise of judicial discretion and the application of principles of equity, good faith, fair dealing, reasonableness, conscionability and materiality (regardless of whether the applicable agreements are considered in a proceeding in equity or at law).
|
(h)
|
I have not, and to my knowledge the Company has not, received any letters alleging infringement by the Company of any third-party patents or misappropriation by the Company of any third-party intellectual property.
|
(i)
|
I am not aware of any actual or potential infringement by a third party of the Patents.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Array BioPharma Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 7, 2019
|
By:
|
/s/ RON SQUARER
|
|
|
|
Ron Squarer
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Array BioPharma Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within this entity, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 7, 2019
|
By:
|
/s/ JASON HADDOCK
|
|
|
|
Jason Haddock
|
|
|
|
Principal Accounting Officer
|
(a)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(b)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Date:
|
May 7, 2019
|
/s/ RON SQUARER
|
|
|
Ron Squarer
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
/s/ JASON HADDOCK
|
|
|
Jason Haddock
|
|
|
Principal Accounting Officer
|
|
|
|