Array BioPharma Inks Deal With Novartis To Develop Cancer Drug - Update News Wireupdated Apr 19, 2010TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity. (RTTNews) - Development stage biopharmaceutical company Array BioPharma Inc. (ARRY) said Monday that it has entered into an oncology collaboration deal with Novartis AG (NVS) to develop ARRY-162, a small-molecule MEK inhibitor. Shares of the company surged over 33% in the extended hours trading on Monday.Under the terms of the deal, Array would initially get $45 million comprising an upfront and milestone payment for world-wide development of ARRY-162, which is currently in phase I cancer trial, its back-up ARRY-300, and other MEK inhibitors. Also, if certain clinical, regulatory and commercial milestones are attained, Array is eligible to get an additional $422 million.Boulder, Colorado-based Array said it intends to co-develop ARRY-162 in one or more specific indications and fund a portion of development costs. Array, as per the deal, is also eligible for double-digit royalties on sales of approved drugs outside of the U.S., with a significantly higher royalty rate for the U.S. sales, if Array meets its co-funding obligations. Array also has a co-detailing right in the U.S. for approved drugs."This agreement with Novartis is a major advance in our strategic objective to become a fully integrated, commercial-stage biopharmaceutical company. We believe ARRY-162 will benefit from the additional resources of a major pharmaceutical company to rapidly maximize its promise as a cancer treatment, both as a single agent and in combination therapy. Novartis is the right partner because of its track record in developing and commercializing important new cancer therapies," said Robert Conway, Chief Executive, Array BioPharma.MEK is a key protein kinase in the RAS/RAF/MEK/ERK pathway, which signals cancer cell proliferation and survival. ARRY-162 is currently in a phase I, open-label, multiple dose trial, to determine the maximum tolerated dose and evaluate safety. The study also evaluates pharmacokinetics and pharmacodynamics of ARRY-162, following daily oral administration in advanced cancer patients with solid tumors. Also, Array has initiated an expansion phase of this trial initially in biliary tract cancer patients. ARRY finished Monday's regular trade at $3.02 on the Nasdaq. In the after hours session, it picked up 33.44% or $1.01.For comments and feedback: contact firstname.lastname@example.org Copyright(c) 2010 RTTNews.com, Inc. All Rights ReservedEditorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.