On May 03, 2016 Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA) today reported its financial results for the first quarter ended March 31, 2016 (Press release, Momenta Pharmaceuticals, MAY 3, 2016, View Source [SID:1234511810]).

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For the first quarter of 2016, the Company reported total revenues of $19.9 million, including $14.8 million in product revenues from Sandoz’s sale of Glatopa (glatiramer acetate injection). Momenta reported a net loss of $(24.0) million, or $(0.35) per share for the first quarter compared to a net loss of $(21.9) million, or $(0.40) per share for the same period in 2015. At March 31, 2016, the Company had cash, cash equivalents, and marketable securities of $362.8 million compared to $350.0 million at December 31, 2015.

"Since the beginning of 2016, Momenta has made steady progress in each of our business areas," said Craig A. Wheeler, President and Chief Executive Officer of Momenta Pharmaceuticals. "Our biosimilars pipeline continues to advance. The pivotal trial for M923, our biosimilar version of HUMIRA developed in collaboration with Baxalta, is now fully enrolled and our collaboration with Mylan for the development of six biosimilar candidates received HSR clearance and is progressing nicely. In our novel drug portfolio, our Phase 2 trial of necuparanib in patients with pancreatic cancer continues to enroll, and we remain on track for availability of top line data in the second half of 2017. We also received regulatory clearance to initiate a Phase 1 dosing study for M281, our novel anti-FcRn antibody, and anticipate dosing our first subject in the next several weeks.

"For the remainder of 2016, we look forward to continued progress across our pipeline of biosimilar and novel drug programs including the presentation of final Phase 1 results from our necuparanib trial and Phase 1 study of M923," continued Mr. Wheeler.

First Quarter Highlights and Recent Events

Complex Generics:

In the first quarter of 2016, Momenta recorded $14.8 million in product revenues from Sandoz’s Glatopa sales. Since the launch of Glatopa in June 2015, Momenta has recorded $58.2 million in product revenues from Sandoz’s sales of Glatopa reflecting $67.3 million in profit share net of a deduction of $9.1 million for reimbursement to Sandoz of the Company’s share of pre-launch Glatopa-related legal expenses.
The ANDA submitted by Sandoz for a three-times-a-week generic COPAXONE 40 mg (glatiramer acetate injection) is under FDA review. The Company expects to receive tentative regulatory approval in 2016.
A district court trial challenging Teva’s four Orange Book-listed patents for COPAXONE 40 mg (glatiramer acetate injection) is scheduled for September 26, 2016.
Momenta’s product revenues from Sandoz’s net sales of enoxaparin sodium injection decreased from $2.7 million in the first quarter of 2015 to zero for the same period in 2016.
Biosimilars:

In April 2016, Momenta and Baxalta completed enrollment in the pivotal clinical trial for M923, a biosimilar candidate of HUMIRA (adalimumab). The companies are targeting first regulatory submission in 2017 and a first commercial launch as early as 2018. The Company plans to present data from the pharmacokinetics study of M923 in a poster session at the European League against Rheumatism (EULAR) Annual Congress in London on June 10, 2016.
In January 2016, Momenta announced a global collaboration with Mylan N.V. to develop, manufacture and commercialize six of the Company’s biosimilar candidates, including M834, a biosimilar candidate of ORENCIA (abatacept). On February 9, 2016, the companies received clearance for the collaboration under the Hart-Scott-Rodino Antitrust Improvements Act. In the first quarter of 2016 Momenta received an upfront cash payment of $45 million from Mylan.
In January 2016, the U.S. Patent and Trademark Office (PTAB) instituted Momenta’s request for an Inter Partes Review proceeding to challenge Bristol Myers Squibb’s U.S. formulation Pat. 8,476,239 for ORENCIA. The Company expects a decision from the PTAB in January 2017.
Novel Drugs:
Necuparanib (novel oncology candidate)

Momenta’s Phase 2 trial to evaluate the antitumor activity of necuparanib in combination with Abraxane (nab-paclitaxel) plus gemcitabine, versus Abraxane plus gemcitabine alone, is enrolling. The Company expects to have clinical data in the second half of 2017.
Momenta continues to collect data from the Phase 1 study of necuparanib and plans to present final data in a poster session at the upcoming American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) Annual Meeting in June 2016.
Autoimmune Drugs
Momenta’s three novel autoimmune candidates are in preclinical development. These candidates include a hyper-sialylated IVIg (hsIVIg), a high potency alternative to IVIg, and two recombinant molecules: M230, a Selective Immunomodulator of Fc receptors (SIF3) and M281, an anti-FcRn monoclonal antibody. The Company is advancing the recombinant candidates with a goal of initiating clinical trials in 2016 for M281, and in 2017 for M230. The Company is continuing its efforts to identify and explore potential collaboration opportunities for the further development and commercialization of its hsIVIg program.

First Quarter 2016 Financial Results

Total revenues for the first quarter of 2016 were $19.9 million compared to $8.6 million for the same period in 2015. Total revenues for the first quarter of 2016 include $14.8 million in product revenue from Glatopa, which launched in June 2015, and no product revenue from enoxaparin, as no contractual profit was earned on Sandoz’s net sales of enoxaparin for the quarter. Total revenue in the first quarter of 2015 included enoxaparin product revenue of $2.7 million. The decrease in enoxaparin product revenue is due to the change in collaboration economics from a royalty payment to 50% profit share, decreased unit sales due to lower market share and continued competitive pricing.

Collaborative research and development revenue for the first quarter of 2016 was $5.1 million compared to the $5.8 million recorded in the same quarter last year. In the first quarter of 2016, the Company received a $45.0 million upfront payment from Mylan. The upfront payment was allocated to the six products and will be recognized as revenue ratably over the estimated development periods of the six products in the collaboration. In the first quarter of 2016, $0.9 million of collaborative revenue from Mylan was recognized. The decrease in the balance of research and development revenue of $1.6 million from the 2015 period to the 2016 period is due primarily to lower reimbursable costs for M923, as Baxalta has assumed clinical development responsibility for that program.

The Company expects that collaborative research and development revenue earned by Momenta related to reimbursement from Baxalta and Sandoz will fluctuate from quarter to quarter in 2016 depending on research and development activities. The quarterly recognition of consideration under the Company’s collaborations with Baxalta and Mylan is expected to be $2.4 million and $1.8 million per quarter, respectively.

Research and development expenses for the first quarter of 2016 were $28.8 million (net of $3.7 million reimbursable from Mylan), compared to $22.7 million for the same period in 2015. The increase of $6.1 million, or 27%, from the 2015 period was due to increases of $5.0 million in personnel-related expenses primarily attributed to the reversal of prior period share-based compensation expense in the first quarter of 2015 associated with performance-based stock awards, $3.3 million in third-party research and process development costs for the Company’s biosimilar and novel autoimmune drug programs, $0.6 million of facility and depreciation expense, $0.6 million in necuparanib Phase 2 clinical trial expenses and $0.3 million in professional fees.

General and administrative expenses for the quarter ended March 31, 2016 were $15.6 million, compared with $7.9 million for the same period in 2015. The increase of $7.7 million, or 97%, was due to $6.3 million in personnel-related expenses primarily due to the reversal of prior period share-based compensation expense in the first quarter of 2015 associated with performance-based stock awards and a $1.4 million increase in professional fees.

At March 31, 2016, Momenta had $362.8 million in cash, cash equivalents and marketable securities.

Financial Guidance

The Company’s guidance for the first quarter of 2016 for operating expenses, excluding stock-based compensation expense and net of collaborative reimbursement revenues from Sandoz and Baxalta, was $45 – $55 million. As shown in the table below, reported operating expenses, excluding stock-based compensation expense and net of collaborative reimbursement revenues from Sandoz and Baxalta, were $37.9 million. The guidance for the first quarter did not include consideration of the Mylan collaboration, in which the Company presents the cost sharing reimbursement from Mylan as a reduction in operating expenses. Excluding the impact of the Mylan collaboration cost-sharing of $3.8 million, operating expenses were $41.7 million, as compared with guidance of $45 – $55 million. The lower expenses in the first quarter were primarily due to the timing of process development and manufacturing activities.

Three Months
Ended March 31,
2016 2015
Operating expenses:
As reported $ 44,404 $ 30,639
Share-based compensation (expense) income (4,828 ) 4,385
Less: Collaborative reimbursement (1,686 ) (4,154 )
Subtotal 37,890 30,870
Add: Mylan collaboration cost-sharing 3,792 —
$ 41,682 $ 30,870

Today, Momenta provided guidance that it expects operating expenses (which will be reported net of Mylan’s share of collaboration expenses), excluding stock-based compensation expense and net of collaborative reimbursement revenues from Sandoz and Baxalta, to be approximately $40 – $45 million per quarter for the remainder of 2016.

On May 3, 2016 Delcath Systems, Inc. (NASDAQ: DCTH), a specialty pharmaceutical and medical device company focused on the treatment of primary and metastatic liver cancers, reported that John Wayne Cancer Institute in Los Angeles, California and Duke Cancer Institute in Durham, North Carolina have been activated as clinical trial sites in the Company’s FOCUS Phase 3 Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma (the FOCUS Trial) (Press release, Delcath Systems, MAY 3, 2016, View Source;p=RssLanding&cat=news&id=2164208 [SID:1234511809]). The prestigious centers join Moffitt Cancer Center in Tampa, Florida as active participants in the FOCUS Trial. Delcath plans to include approximately 30 cancer centers in the United States and Europe in the FOCUS Trial.

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"We are pleased to add these highly-respected cancer centers to our FOCUS Phase 3 trial," said Jennifer K. Simpson, Ph.D., MSN, CRNP, President and CEO of Delcath Systems. "Interest in participating in the FOCUS trial is high among other major cancer centers in both the United States and Europe, and we expect to announce further trial site activations in the coming months."

About the FOCUS Trial

The FOCUS Trial is evaluating the safety, efficacy and pharmacokinetic profile of the Company’s Melphalan/HDS system versus best alternative care in 240 patients with ocular melanoma liver metastases. The FOCUS Trial’s primary endpoint is a comparison of overall survival between the two study arms; secondary and exploratory endpoints include progression-free survival, overall response rate and quality-of-life measures. The FOCUS Trial is being conducted under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The SPA provides agreement that the Phase 3 trial design adequately addresses objectives that, if met, would support the submission for regulatory approval of Melphalan/HDS.

On May 3, 2016 MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX, OTC: MPSYY) reported its first quarter interim statement, outlining the key events of the first three months ending March 31, 2016 (Press release, MorphoSys, MAY 3, 2016, View Source [SID:1234511804]).

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Financial results for the first quarter of 2016

Group revenue in the first quarter of 2016 reached EUR 12.1 million (Q1/2015: EUR 70.4 million), and EBIT was EUR -9.7 million (Q1/2015: EUR 52.8 million). Previous-year figures included a non-recurring effect of approximately EUR 59 million.
The Group’s liquidity position on March 31, 2016 amounted to EUR 287.0 million (December 31, 2015: EUR 298.4 million).
The Company confirmed its 2016 financial year guidance for revenue in the range of EUR 47 million to EUR 52 million and EBIT in the range of EUR -58 million to EUR -68 million.
Operating highlights of the first quarter of 2016

In January, MorphoSys disclosed the receipt of a milestone payment in connection with the start of a global phase 2 clinical study. This study was initiated by Bayer and is designed to support registration of anetumab ravtansine (BAY 94-9343) as a potential new treatment for mesothelioma.
In March, MorphoSys repurchased 52,295 of its own shares in the amount of EUR 2,179,963 to be used for long-term incentive (LTI) programs, specifically the LTI Plan granted on April 1, 2016 to the Company’s Management Board and Senior Management Group.
At the end of the first quarter, MorphoSys’s product pipeline comprised a total of 104 therapeutic antibodies, 26 of which are in clinical development. Three partnered programs are currently in phase 3 trials.
Events after the end of the first quarter of 2016

In early April, MorphoSys announced the start of a phase 2 clinical combination trial which has been named L-MIND (Lenalidomide-MOR208 IN DLBCL), with MOR208 and the cancer drug lenalidomide (Revlimid) in patients with diffuse large B-cell lymphoma (DLBCL).
Also in early April, MorphoSys announced the initiation of a phase 1 trial with the Ylanthia antibody MOR106, which is being co-developed with Galapagos for the treatment of inflammatory diseases.
On April 4, 2016, MorphoSys announced that it filed a lawsuit in the United States (U.S.) District Court of Delaware against Janssen Biotech and Genmab for patent infringement. With this complaint, MorphoSys seeks redress for the infringing manufacture, use and sale of Janssen’s and Genmab’s daratumumab, an antibody targeting CD38.
On April 21, 2016, MorphoSys announced that its partner Novartis confirmed that a phase 2b/3 study examining bimagrumab (BYM338) in sporadic Inclusion Body Myositis (sIBM) did not meet its primary endpoint. Data are currently being reviewed and will inform decisions on the bimagrumab development program. Ongoing clinical trials are being continued at this time.
In EURO million* 3-Months 2016 3-Months 2015


Group Revenues 12.1 70.4
Total Operating Expenses 21.9 17.7
Other Income/Expenses 0.1 0.0
Earnings Before Interest and Taxes – EBIT (9.7) 52.8
Consolidated Net Profit / (Loss) (7.2) 40.9
Total EPS, diluted, in EURO (0.28) 1.55

* Differences due to rounding

"The proprietary portfolio is making excellent progress with the first combination trial of MOR208 now ongoing, and the start of clinical development of MOR106, an innovative new antibody from our collaboration with Galapagos," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "The outcome of the phase 3 bimagrumab trial was disappointing, but we look forward to reporting on multiple milestones in 2016, including results from the registration trials for guselkumab and additional data from our broad development pipeline."

"The results for the first three months of 2016 are fully in line with our expectations. With our solid financial position, we are well-positioned to continue delivering on our research and development goals," commented Jens Holstein, Chief Financial Officer of MorphoSys AG. "We will continue to focus on the expansion of our pipeline."

Financial Review of the First Three Months of 2016 (IFRS)

In comparison to the previous year, Group revenues declined to EUR 12.1 million (Q1/2015: EUR 70.4 million). Revenues in the comparable period of 2015 contained a non-recurring effect in the amount of about EUR 59 million from the termination of the partnership with Celgene to co-develop and co-promote MOR202. Success-based payments amounted to 8%, or EUR 1.0 million (Q1/2015: 1%, or EUR 0.5 million), of total revenue. The Proprietary Development segment recorded revenues of EUR 0.1 million (Q1/2015: EUR 59.4 million). Revenues in the Partnered Discovery segment comprised EUR 12.0 million (Q1/2015: EUR 11.0 million).

Total operating expenses for the first three months of 2016 amounted to EUR 21.9 million (Q1/2015: EUR 17.7 million). Total research and development expenses were EUR 18.6 million (Q1/2015: EUR 14.7 million). R&D expenses mainly consisted of costs for external lab services and personnel costs. General and administrative expenses increased slightly to EUR 3.2 million (Q1/2015: EUR 3.0 million) mainly driven by higher expenses for personnel. Earnings before interest and taxes (EBIT) amounted to EUR -9.7 million (Q1/2015: EUR 52.8 million).

The Proprietary Development segment reported a segment EBIT of EUR -14.3 million (Q1/2015: EUR 49.7 million), while Partnered Discovery showed a segment EBIT of EUR 7.7 million (Q1/2015: EUR 5.8 million). Proprietary R&D expenses including technology development amounted to EUR 14.6 million (Q1/2015: EUR 10.4 million).

On March 31, 2016, the Group’s liquidity position amounted to EUR 287.0 million compared to EUR 298.4 million on December 31, 2015. The Company’s liquidity is reflected in the balance sheet items "cash and cash equivalents", "available-for-sale financial assets", "bonds, available-for-sale" and current and non-current "financial assets classified as loans and receivables". The decline in liquidity was mainly the result of the use of cash for operations in the first three months of 2016 and for the repurchase of shares for the Group’s long-term incentive programs.

Financial guidance for 2016

MorphoSys re-confirmed its guidance for 2016. MorphoSys anticipates total Group revenues in the range of EUR 47 million to EUR 52 million and expects EBIT to be in the range of EUR -58 million to EUR -68 million. Proprietary R&D expenses are expected to rise to EUR 76 million to EUR 83 million. This guidance does not include any potential in-licensing or co-development of additional development candidates.

On May 3, 2016 Array BioPharma Inc. (NASDAQ: ARRY), a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule cancer therapies, reported results for its fiscal year third quarter ending March 31, 2016 and provided an update on the progress of its key clinical development programs (Press release, Array BioPharma, MAY 3, 2016, View Source;p=RssLanding&cat=news&id=2164230 [SID:1234511799]).

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"We have a number of near-term value-drivers, highlighted by our planned NDA submission for binimetinib based on results from our Phase 3 trial in NRAS-mutant melanoma patients (NEMO)," said Ron Squarer, Array’s Chief Executive Officer. "At ASCO (Free ASCO Whitepaper), we will present full results from the NEMO trial, as well as provide an update on our Phase 2 study of encorafenib plus cetuximab in BRAF-mutant colorectal cancer patients. Later this summer, we plan to share top-line results from COLUMBUS, our Phase 3 trial of binimetinib and encorafenib in BRAF melanoma patients. We also expect results from SELECT-1, a study of selumetinib in second line KRAS-mutant non-small cell lung cancer patients. Given our estimated cash runway, a series of strong partnerships and continued Novartis funding of ongoing binimetinib and encorafenib trials, we are well positioned to execute on our long-term strategy."

KEY PIPELINE UPDATES

Binimetinib (MEK162) and encorafenib (LGX818)
Novartis Agreement
Novartis continues to conduct and/or substantially fund all ongoing trials with binimetinib and encorafenib through their completion, including the NEMO and COLUMBUS trials. Reimbursement revenue from Novartis was approximately $74 million for the previous 9 months, of which $64 million was recorded over the past two quarters.

NEMO: Global Phase 3 trial of binimetinib versus dacarbazine in NRAS-mutant melanoma patients
Based on the results of the NEMO trial, Array plans to submit an NDA during the first half of 2016. Results from NEMO will be presented at the 2016 American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) conference (ASCO) (Free ASCO Whitepaper), and will include progression free survival (PFS), overall survival (OS), objective response rate (ORR), safety and pre-specified sub-group analyses, including outcomes in patients who received prior treatment with immunotherapy.

Activating NRAS mutations are present in approximately 20% of patients with metastatic melanoma, and has been a poor prognostic indicator for these patients. Treatment options for this population remain limited beyond immunotherapy (PD-1, CTLA4), therefore binimetinib could represent an important additional therapy for these patients.

COLUMBUS: Global Phase 3 trial of binimetinib plus encorafenib versus vemurafenib in BRAF-mutant melanoma patients
As part of Array’s standard data cleaning protocol, it was recently learned that additional PFS events need to be observed prior to database lock and final analysis, a process previously expected to be complete by the end of June. Array now projects COLUMBUS top-line results availability during the third quarter of 2016.

Activating BRAF mutations are present in approximately 50% of patients with metastatic melanoma. In two separate Phase 1/2 trials in this patient population, binimetinib plus encorafenib demonstrated encouraging clinical activity and an attractive tolerability profile, including low incidence of pyrexia, and little to no incidence of rash or photosensitivity. Patients treated in two Phase 3 trials of dabrafenib plus trametinib (COMBI-d and COMBI-v) experienced greater than 50% incidence of pyrexia (fever), while in a large, randomized trial of vemurafenib and cobimetinib (coBRIM) nearly 50% of patients experienced photosensitivity reactions. Of the patients who experienced pyrexia on COMBI-d and COMBI-v, one-third to one-half reported three or more events, and at least half required dose modifications including interruptions, reductions, or discontinuation as a result of their pyrexia. Of the patients who experienced photosensitivity on coBRIM, the median duration of photosensitivity was three months, duration was as long as 14 months for some patients. Only 63% of patients with photosensitivity reactions experienced resolution while on study.

BRAF-Mutant Colorectal Cancer
Array’s updated results, including PFS and OS, from its Phase 2 combination trial with encorafenib in patients with BRAF-mutant colorectal cancer (BRAF CRC) will be presented at ASCO (Free ASCO Whitepaper) 2016. Based on the strength of existing Phase 2 combination data, Array plans to initiate a Phase 3 global registration trial in this patient population later this year.

Colorectal cancer is the third most common cancer among men and women in the United States, with approximately 134,000 new cases and nearly 50,000 deaths from the disease projected in 2016. BRAF mutations occur in up to 20% percent of patients with colorectal cancer and represents a poor prognosis for these patients. Historical published PFS and OS results after first line range from 1.8 to 2.5 months and 4.7 to 5.9 months, respectively. In addition, historical published response rates from various studies for EGFR-based therapy in this population range from 6% to 8%. Array’s data shared at the 2015 European Society of Medical Oncology (ESMO) (Free ESMO Whitepaper)’s World Congress of Gastrointestinal Cancer (ESMO GI) compare favorably both to currently available therapies for BRAF CRC patients, and to other recently published investigational approaches in this population. The combination of encorafenib and cetuximab has demonstrated a well-tolerated safety profile with most treatment related adverse events being grade 1 or 2 and few grade 3 or 4 adverse events.

ARRY-797 (ARRY-371797)
Phase 2 trial on-going in patients with LMNA A/C-related dilated cardiomyopathy (DCM)
Array is conducting a 12-patient Phase 2 study to evaluate the effectiveness and safety of ARRY-797 in patients with LMNA A/C-related DCM, a serious, genetic cardiovascular disease. Results will be presented at the European Society of Cardiology on August 30, 2016. By age 45, approximately 70% of patients with LMNA A/C-related DCM will have died, suffered a major cardiac event, or will have undergone a heart transplant. Data on the primary endpoint of mean change in six-minute walk test (6MWT) at 12 weeks relative to baseline exceeds benchmarks set by a number of drugs for rare diseases recently approved on the basis of the 6MWT as a primary endpoint. Secondary endpoints in the ARRY-797 trial, including changes in N-Terminal pro-Brain-derived Natriuretic Peptide (NT-proBNP, a serum biomarker of heart failure severity), and patient reported outcomes, are directionally consistent with the primary endpoint. Data for patients followed through 48 weeks suggest a durable effect. Taken together, the data to date suggest a path forward for this program, and Array has met with regulators to discuss the design of a study that could be the basis for marketing approval.

Selumetinib (partnered with AstraZeneca)
Registration trials advancing in NSCLC (SELECT-1), thyroid cancer (ASTRA) and neurofibromatosis type 1
AstraZeneca continues to advance selumetinib in three registration trials: SELECT-1 in patients with KRAS-mutant non-small cell lung cancer (NSCLC), a registration trial in patients with neurofibromatosis type 1 and ASTRA in patients with differentiated thyroid cancer. AstraZeneca expects top-line results from SELECT-1 in the second half of 2016 and projects a regulatory filing of selumetinib in NSCLC in the first half of 2017.

SELECT-1 is a 500-patient randomized, double-blind, placebo-controlled study that was designed to evaluate the safety and efficacy of selumetinib plus docetaxel as a second line therapy in locally advanced or metastatic KRAS-mutant NSCLC. KRAS mutations are amongst the most common mutations in NSCLC, present in approximately a quarter of these patients. The study is designed to evaluate PFS as the primary endpoint and a key secondary endpoint is OS. AstraZeneca’s decision to progress selumetinib to Phase 3 in NSCLC followed the results from a randomized Phase 2 study evaluating the combination of selumetinib with docetaxel against docetaxel alone in KRAS-mutation positive NSCLC. This study demonstrated response rates of 37.2% vs 0% (p<0.0001), and a statistically significant improvement in PFS of 5.3 vs 2.1 months (HR 0.58, p<0.014).

ARRY-954 / Select Tropomyosin Receptor Kinase A (TrkA) inhibitor for pain and inflammation
Asia-Focused Strategic Collaboration with Asahi Kasei Pharma Corporation; Array retains the right for all compounds for all indications outside of Asia
In March 2016, Array announced a strategic collaboration with Asahi Kasei Pharma Corporation to develop and commercialize select preclinical TrkA inhibitors, including Array-invented ARRY-954, for pain, inflammation and other non-cancer indications. Under the terms of the agreement, Array retains the right for all compounds for all indications outside of Asia. Within Asia, Array retains the right to cancer indications for all compounds, excluding those compounds being developed by Asahi Kasei Pharma, including ARRY-954. Asahi Kasei Pharma will have exclusive rights to develop and commercialize products in Japan, Korea, Taiwan and China for pain, inflammation and other non-cancer indications. Array received an upfront payment of $12 million, is entitled to receive up to $64 million if certain development and commercialization milestones are achieved, and is eligible for up to double-digit royalties. Activation of the TrkA pathway by Nerve Growth Factor (NGF) has been implicated in the pathogenesis of many difficult to treat human pain conditions such as osteoarthritis pain, chronic low back pain, diabetic peripheral neuropathy, cancer pain and interstitial cystitis.

FINANCIAL HIGHLIGHTS

Cash, cash equivalents, marketable securities were approximately $118 million and accounts receivable was approximately $63 million at the end of the quarter. Accounts receivable primarily consist of receivables expected to be paid by Novartis within three months and the $12.0 million up-front fee from Asahi Kasei Pharma, which was received in April 2016. In March 2015, binimetinib and encorafenib became wholly-owned assets of Array, which prompted changes to the classification of revenue and expenses for the programs. The new expense classifications were included in the fourth quarter of fiscal 2015 financial results. Beginning in the first quarter of fiscal 2016, Array reports revenue from Novartis reimbursements under its agreements with Novartis for binimetinib and encorfenib as a separate line item called "reimbursement revenue." The net earnings (or loss) per share described below are diluted net earnings (or loss) per share.

Third Quarter of Fiscal 2016 Compared to Second Quarter of Fiscal 2016 (Sequential Quarters Comparison)
Revenue for the third quarter of fiscal 2016 was $43.0 million, compared to $35.4 million for the prior sequential quarter. The $7.6 million increase in revenue was primarily due to higher reimbursement revenue from Novartis. Cost of partnered programs for the third quarter of fiscal 2016 was $5.8 million, compared to $5.7 million for the prior quarter. Research and development expense was $48.8 million, compared to $41.4 million in the prior quarter. The increase in research and development expense is primarily related to the ongoing transition of binimetinib and encorafenib trials from Novartis to Array. Net loss for the third quarter was $22.7 million, or ($0.16) per share, and was $24.2 million, or ($0.17) per share in the prior quarter.

Third Quarter of Fiscal 2016 Compared to Third Quarter of Fiscal 2015 (Prior Year Comparison)
Compared to the same quarter of fiscal 2015, revenue for the third quarter of fiscal 2016 increased by $36.4 million, primarily due to $36.9 million in reimbursement revenue from Novartis. Cost of partnered programs decreased by $6.3 million compared to the third quarter of fiscal 2015 primarily due to binimetinib development costs being presented as research and development expense instead of cost of partnered programs upon becoming wholly-owned programs. Research and development expense increased by $37.0 million compared to the third quarter of fiscal 2015 due to the categorization of binimetinib costs, as well as new spending on encorafenib. Net loss for the third quarter of fiscal 2016 was $22.7 million, or ($0.16) per share, and was net income of $58.3 million, or $0.37 net income per share, for the same quarter in fiscal 2015.

Nine Months of Fiscal 2016 Compared to Nine Months of Fiscal 2015 (Prior Year Comparison)
For the nine months ended March 31, 2016, revenue was $94.7 million, compared to $39.6 million for the same period in fiscal 2015. Net loss for the nine months ended March 31, 2016, was $67.8 million, or ($0.47) per share, compared to a net income of $22.1 million, or $0.16 per share, in the comparable prior year period. The third quarter of fiscal 2015 included a one-time $80.0 million net gain on the binimetinib and encorafenib agreements. Cash outflows for the nine months ended March 31, 2016 was $62 million.