UPDATE 1-Array BioPharma shares climb on Novartis deal

Tue Apr 20, 2010 11:34am EDT Related News J&J, Novartis increase beat, but no bang aheadTue, Apr twenty 2010WRAPUP 2-J&J, Novartis increase beat, but no bang aheadTue, Apr twenty 2010Array BioPharma shares up on understanding with NovartisTue, Apr twenty 2010BEFORE THE BELL-Array rallies on understanding with NovartisTue, Apr twenty 2010UPDATE 2-Novartis sticks to goals after hog influenza sales boostTue, Apr twenty 2010 Stocks & &

* Array to get $45 mln upfront payment

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* Analysts see understanding as a certain for Array

* Shares up as most as 38 pct (Adds researcher comment, details, updates share movement)

Apr twenty - Array BioPharma Inc (ARRY.O) sharesrose as most as 38 percent Tuesday, a day after it sealed alicensing understanding for the cancer drug possibilities with Swissdrugmaker Novartis AG (NOVN.VX), the second high-profilepartnership in five months.

The deal, that includes early theatre claimant ARRY-162,entitles Array to $45 million in upfront payments and $422million in milestones. [ID:nSGE63I0M5]

"Financially and strategically, we perspective a cancer partnershipwith Novartis as tasteful as it is well known for the strongpresence in oncology," Jefferies Co researcher Eun Yang wrote ina investigate note.

Yang pronounced the understanding increased Array"s stream money on all sides toabout $140 million, that he estimated to be enough fundingfor the subsequent dual years.

Array, that focuses on cancer, inflammatory and metabolicdiseases, had inked a partnership understanding with Amgen Inc (AMGN.O)for the growth and selling of the sort 2 diabetes drugin December. [ID:nSGE5BE0JO]

Rodman Renshaw researcher Simos Simeonidis pronounced he continuedto perspective Array shares as undervalued, and reiterated his "marketoutperform" rating and $10 cost aim on the stock.

He pronounced the batch remained one of his tip picks, citingArray"s tube of 4 entirely owned clinical programs andnumerous compounds partnered with big pharma and biotechcompanies.

Array"s clinical programs embody possibilities for thetreatment of mixed myeloma and breast cancer.

William Blair Co researcher John Sonnier pronounced he noticed theNovartis contract as serve validation of Array"s discoveryplatform.

"Array"s partnered programs paint over $2.0 billion inpotential milestones, and poignant kingship on sales," hesaid in a investigate note.

Array shares, that were one of the tip commission gainersTuesday on Nasdaq, were up 33 percent at $4.02 in high-volumemorning traffic after in contact with a high of $4.17.

About 10.8 million shares altered hands, that is around 23times the stock"s 10-day relocating average. (Reporting by Shailesh Kuber in Bangalore; Editing byAradhana Aravindan)

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