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Executives

Robert E. Conway – Chief Executive Officer

R. Michael Carruthers – Chief Financial Officer

Kevin Koch, Ph.D. – President and Chief Scientific Officer

David L. Snitman, Ph.D – Chief Operating Officer and Vice President, Business Development

John Yates, MB ChB, MD – Chief Medical Officer

Analysts

Eun Yang, Ph.D. – Jefferies & Company

Richard Smith, Ph.D. – JP Morgan

Howard Liang, Ph.D. – Leerink Swann & Company

Edward Tenthoff – Piper Jaffray & Company

Christopher J. Raymond – Robert W. Baird & Co.

Ian Somaiya – Thomas Weisel Partners

Array BioPharma, Inc. (ARRY) Q3 2008 Earnings Call May 6, 2008 9:00 AM ET

Operator

Good day everyone and welcome to today’s Array BioPharma quarterly conference call. Today’s call is being recorded. At this time for opening remarks I would like to turn the call over to Tricia Haugeto. Please go ahead.

Tricia Haugeto

Thank you, William. Good morning and welcome once again to Array BioPharma conference call to discuss our financial results for the third quarter fiscal 2008. You can listen to this conference call on Array’s website at www.arraybiopharma.com. In addition, a replay of the conference all will be available via telephone for the next seven days and via the internet. I would like to introduce Array’s Chief Executive Officer, Bob Conway and our Chief Financial Officer Mike Carruthers, who will lead the call today. I would also like to introduce John Yates, our Chief Medical Officer, who will provide an update on our proprietary drug development program and Kevin Koch, our President and Chief Scientific Officer, and David Snitman, our Chief Operating Officer and Vice President of Business Development who will be available to answer questions as needed. But before I hand over the call to Bob, I would like to read the following progress statement:

The matters we are discussing today include projections or other forward-looking statements about the future results, research and development goals of Array and its collaborators, and future financial performance of Array. These statements are estimates based on managements current expectations and involve risks and uncertainties that could cause them to differ materially from actual results. We refer you to risk factors discussed in our filings with the FCC, including our annual report filed on Pharm K [ph 00:01:03] for the year ended June 30, 2007, and any other filings Array makes with the FCC. These filings identify important risk factors that could cause the actual results to differ materially from those in our projections or forward-looking statements.

Now I would like to turn it over to Array’s CEO, Bob Conway.

Robert E. Conway

Thanks Trisha. Good morning everyone. Thanks for joining the call to discuss Array’s third quarter results for the fiscal year ending June 30, 2008. I hope everyone got a chance to review last night’s press release. During the quarter we continue to make excellent progress, executing our strategy to become a fully integrated commercial stage biopharmaceutical company focused on inventing, developing and commercializing targeted small molecule drugs to treat patients with cancer and inflammatory disease. Last night we announced that Array has received an $80 million financing commitment from Deerfield Management, a leading healthcare organization and one of our largest shareholders. It is a six year interest bearing loan that is due April, 2014.

A key component of this deal is the flexibility it provides us on repaying the loan. The principal and accruing interest are repayable are Array’s option in either stock or cash, in whole or part, at anytime during the loan. For example, if Array has positive data that drives up our stock we could choose to pay off the loan with appreciated stock or, alternatively, continue to hold the loan for the full six year term. This is solely at our option. Array will issue Deerfield 6 million warrants with a six year term priced at $7.54, which turns out to be a 26% premium from last night’s close.

We are excited to now have the capital we need to take Array to the next level. We believe that together with existing capital these funds will enable us to advance six wholly-owned programs through clinical proof of concept studies while continuing to discovery research to feed our clinical pipeline. Success in any one of these programs could create significant value for our shareholders. This financing structure achieves our objective of maintaining adequate capital reserves to fund robust proof of concept trials while minimizing shareholder dilution.

Another benefit of this financing is that any program we choose to partner will be partnering from strength and deals will be done to maximize the value of the drug rather than from short term financial need. Obviously with six drugs in the clinic and additional discovery programs advancing into development over the next year, we will need to partner some of these drugs to maximize their value. We plan to leverage Brigg Pharma and strategic partnerships for what they do really well. And that is later stage co-development and commercialization.

Let me report on Array’s progress in other areas this quarter. In our proprietary research program we announced top line results from a Phase 2 clinical trial, evaluating the efficacy of ARRY-797, a novel small molecule in inhibitor in patients with postsurgical dental pain. John Yates, our CMO, will be presenting additional results on this trial at a scientific meeting this week.

We initiated a global Phase 2 trial with our MEK inhibitor for inflammation, ARRY-162. This will be added to methotrexate in 200 patients with active ARRY. . We believe ARRY-162 is the first MEK inhibitor to enter Phase 2 studies for the treatment of chronic inflammatory disease. We continue enrolling patients in a Phase 1 D expansion trial of ARRY-543, our ErbB-2 EGFR inhibitor. Half of the patients will have Herceptin resistance ErbB-2 positive of metastatic breast cancer and the other half will have other ErbB family driven cancers. We are about 75% enrolled now on this trial.

We continued the Phase 1 expansion trial of ARRY-520, a small molecule KSP inhibitor and initiated a Phase 1 B2 trial of ARRY-520 in patients with AML. We initiated a Phase 1 clinical trial of ARRY-380, an oral selective ErbB-2 inhibitor for cancer. And finally, we initiated a Phase 1 trial of ARRY-614, an oral p38/Tie2 inhibitor in healthy volunteers who evaluate the safety, tolerability, and pharmacokinetics after a single dose in multiple doses of the drug.

In our partnered research Astra-Zenica, our partner for AZD 6244, a novel MEK inhibitor for cancer, we will be reporting trial results on three Phase 2 trials in melanoma, colorectal cancer, and non small cell lung at an upcoming scientific meeting, along with their future plans to advance this drug. ITM 191, a protease inhibitor that resulted from a collaboration with InterMune, advanced into a Phase 1B multiple ascending dose clinical trial conducted by InterMune and its partner Roche, evaluating 191 as a monotherapy in patients with HCV.

InterMune recently reported top line results from four dose cohorts of treatment naïve patients in this trial which demonstrated rapid and significant reduction in HCV. We continued research with Celgene on four drug discovery programs in cancer or inflammation. And finally, we continued research with Genentech on three drug discovery programs in cancer. All seven of these discovery programs are progressing well.

In adding new leadership to Array we appointed Gary Clark, Ph.D. as Vice President of Biostatistics and Data Management at Array. Prior to joining Array, Dr. Clark most recently served as OSI Pharmaceutical’s Vice President of Biostatistics and Data Management, where he successfully supported the approval of Tarceva for the treatment of patients with advanced non small cell lung cancer and advanced pancreatic cancer.

Overall, in both our proprietary and partnered research, we achieved the plans that we set out during the quarter and we are delighted with the results.

Let me pass it over to Mike Carruthers, our CFO, and Mike will drill down the financials.

R. Michael Carruthers

Thank you Bob. Array’s revenue for the third quarter was $7.7 million. This met our expectations. Our loss per share for the quarter of $.51 is also in line with our expectations and slightly better than analyst estimates. R&D spending for our proprietary programs grew during the quarter, as expected, to $23.8 million. This is up from $20.5 million we spent in the prior sequential quarter.

As of March 31, Array’s cash equivalence and marketable securities totaled $116 million. During the quarter we used $26 million, which is higher than our target level of $20 million. There were two reasons for this. First, related to a collaboration agreement, we received a $4 million payment on April 1, missing the quarter end cut-off for including it. And second, we adjusted down the book value of some of our marketable securities on a temporary impairment basis by $2 million. So at better timing or without this adjustment in value we were right on our $20 million target spend.

We have one change to the full year guidance we provided back in December. That guidance was for revenue to come in at $29 million for the year at a loss per share of $2.00 and this is for the fiscal year that will end June 30. The change is to take into account the Deerfield transaction which will increase our loss per share by .04 for fiscal 2007 or this fourth quarter. So the new guidance for the full year loss will be $2.04 per share. And with that I will turn it back to Bob.

Robert E. Conway

Thanks. Thanks Mike. Let me pass it over to John Yates, our CMO, to update us on Array’s clinical programs.

John Yates, MD ChB, MD

Good morning. I am pleased to highlight for you some of the key clinical development activities at Array. First, you will recall in March, we released top line results from a Phase 2 dental pain study showing analgesic efficacy of ARRY-797 in the management of pain resulting from extraction of impacted third molars. Substantial analgesic efficacy was observed both in response to postoperative dosing with Array 797 400 mg and with perioperative dosing with ARRY-797 200 mg prior to surgery and 200 mg postoperatively.

Tomorrow evening I will be presenting more complete data from this study at an oral session at the American Pain Society meeting in Tampa, Florida. We will be able to share with you the main findings from this study after the APS presentation. As a consequence of the positive data from this Phase 2 study, we have already begun a 250 patient follow on dental pain study in which we are comparing results of ARRY-797 at 200 mg, 400 mg and 600 mg with both placebo and with an active comparator, mainly celecoxib 400 mg. Enrollment is ahead of schedule and we anticipate having data internally within the third quarter of calendar ’08.

With regard to treatment of chronic inflammation, we continued to prepare for a 12 week study of ARRY-797 in ankylosing spondylitis, which will begin patient recruitment in the third quarter of calendar ’08. The study will enroll 140 patients and is planned to provide efficacy data by the third quarter of ’09. Since there is a high correlation between drugs that are effective in rheumatoid arthritis and ankylosing spondylitis, we believe the positive data from our ankylosing spondylitis trial will provide a high degree of confidence that ARRY-797 will also be effective in the treatment of rheumatoid arthritis.

In order to make that bridge more effectively we are performing a 30 patient, 28-day study of ARRY-797 in patients with rheumatoid arthritis on stable doses of methotrexate. The primary end points are PK and safety, while a measurement of CRP may provide an early hint of efficacy in this study which will begin enrollment this quarter. ARRY-797 continues to be well tolerated.

Our other Phase 2 program in inflammation is with our MEK inhibitor, ARRY-162. The

12 week Phase 2 study is actively enrolling and we are on track to complete enrollment of all 200 patients by the end of this year. Assuming we stay on track, we will have data from this study internally by the summer of 2009.

ARRY-614, our P38 inhibitor with Tie2 activity is in a Phase 1 study of single and multiple ascending dose study in normal healthy volunteers. Once we have reviewed all of the data from this study we will be able to decide on the course for future development.

On the cancer front, we are more than 75% complete in our enrollment of the Phase 1 B40 patient expansion cohort for ARRY-543. This cohort consists of 20 patients with ErbB-2 positive breast cancer and 20 with a variety of other solid tumors that are known to be driven by ErbB family receptors. We are currently initiating a Phase1 B2 study of ARRY-543 in combination with capcytobene [ph 00:12:57] in patients with ErbB-2 positive metastatic breast cancer.

Our KSP inhibitor, ARRY-520, is currently in the dose escalation phase of a Phase 2 trial in patients with acute myeloid leukemia. We have selected hematological malignancies for early studies due to the relative ease in detecting treatment responses as we strive to identify the optimal treatment regimen.

ARRY-380, our highly potent and selective ErbB-2 inhibitor, is actively recruiting in Phase 1.

Thus, all six of our wholly-owned drugs in clinical development are continuing to advance as anticipated. As Bob indicated, we believe by the end of 2009 we will have obtained proof of concept data on six development programs. We are well positioned to achieve this and hopeful that several of the proof of concept studies will position us to move into Phase 3.

I will now hand it back to Bob.

Robert E. Conway

Thanks John. Let me go over with you quickly the milestones for calendar 2008. Remember we are on a fiscal year end in June 30, 2008, but the milestones which we announced at the beginning of the year are on a calendar basis.

ARRY-797, our pan-cytokine inhibitor, also working through P38. We plan to complete a second dental pain study and then conduct an end of Phase 2 meeting with FDA. In addition, we will initiate Phase 2 ankylosing spondylitis study in the third quarter of this year. ARRY-162, our MEK inhibitor for inflammatory disease, we should complete enrollment of the Phase 2 RA study by the end of this year. ARRY-543, our ErbB-2 EGFR inhibitor, we should complete the Phase 1B expansion. As John indicated we are about 75% of the way through that and initiate a Phase 2 study.

ARRY-520 is our KSP inhibitor and we should complete the Phase 1 trial and initiate a Phase 2 trial, which we already have on the KSP inhibitor and AML. ARRY-380, our ErbB-2 inhibitor, we should complete enrollment on the Phase 1 trial on this program. And then finally, ARRY-614, p38 Tie2 inhibitor, we will conduct Phase 1 and define Phase 2 development plans.

William, that is the end of the prepared remarks. Let me pass it over to you to see if there are any questions this morning.

Question-and-Answer Session

Operator

Thank you sir. (Operator instructions) We will move to our first question from Richard Smith, JP Morgan.

Richard Smith, Ph.D. – JP Morgan

Yes. Good morning. Just a couple quick questions. One on the timing of this financing. Is there anything that led to it to being sort of fine now. Is there a change in strategy? Just trying to get more clarity on that.

Robert E. Conway

No, in fact it furthers our strategy and provides the necessary capital to advance Array through 2009 into the back end of 2010, being well capitalized and moving our programs forward. So we thought this was an opportunity to improve the capital structure of the company and we took full advantage of it.

Richard Smith, Ph.D. – JP Morgan

And with respect to partnerships, does it change your idea on timing on partnerships or was it a case of trying to move all of these products toward the Phase 3 before you seek a partner?

Robert E. Conway

No, we as we have always said, we will move the programs through proof of concept, generally Phase 2 studies, and then evaluate what is the best thing for the drug. Is it partnering with a major pharma or big cap biotech company to provide additional strength in co-development and commercialization or should Array move it forward it ourselves. So that remains consistent and as we get the data off of the trials in 2009 we will decide on a case by case basis what we should do with each one of the drugs.

Richard Smith, Ph.D. – JP Morgan

And just one quick follow up. On 797 in pain, the 600 mg, is that a new dose?

John Yates, MB ChB, MD

Yes.

Richard Smith, Ph.D. – JP Morgan

And what preclinical data do you have to this point on 797?

John Yates, MB ChB, MD

So we have preclinical tox data from two species and it is being very well tolerated. We have not really seen any major adverse events from the preclinical toxicology data.

R. Michael Carruthers

Yes Richard. We have completed six month and nine month tox. We do not have the histopath back on the entire package, but the in life data is back and there is nothing in the package that would impede us moving on into Phase 2 with this molecule. It looks quite good.

John Yates, MB ChB, MD

And we did take the 600 mg dose into a single dose study and it was well tolerated.

Richard Smith, Ph.D. – JP Morgan

Thanks. Great.

Operator

We will take our next question from Ian Somaiya, Thomas Weisel.

Ian Somaiya – Thomas Weisel Partners

Thanks. Just to follow up on Richard’s question on the financing. What are the alternatives as you consider in lieu of the acquired facility, with Deerfield.

R. Michael Carruthers

We look at a number of different things, from marketed deals to registered direct with straight equity, we looked at convertible alternatives and looked at this. And as we evaluated this came in almost every respect to be the best alternative for us in assuring that we had the right amount of capital in the company to aggressively move forward with our plans in what is a pretty difficult biotech financing market right now. So we thought it was a great opportunity to bring in additional capital at a reasonable price and in a manner that we think ultimately will be the least diluted to our shareholders.

Ian Somaiya – Thomas Weisel Partners

And should we assume the entire $80 million is taken up by you?

R. Michael Carruthers

Yes, oh yes. We will take down both tranches. One in June, this coming June and the other in December ’08.

Ian Somaiya – Thomas Weisel Partners

In December of ’08, okay. And any thoughts as to the 543, I don’t know if you could just maybe walk us through comparisons of 543 to market drugs and any additional data you are continuing to generate in terms of differentiating the molecule from a safety perspective or an efficacy perspective?

R. Michael Carruthers

Yes, we had a poster at the ACR which we feel clearly defined that we have a competitive advantage over Lapatenive [ph 00:20:15] in exposure and inhibition of the target at well tolerated doses. We continue to believe that 543 is superior to competitors, in particular Lapatinive . And we are looking forward to completing Phase 1B trial and initiating the capcytomene trial where we think we can get a robust proof of concept and demonstrate an advantage over Lapatinive.

Ian Somaiya – Thomas Weisel Partners

Okay. Thank you.

Operator

(Operator Instructions) We will move to our next questions from Edward Thenthoff, Piper Jaffray.

Edward Tenthoff – Piper Jaffray and Company

Great. Thank you very much. One quick housekeeping and just a return comment to the 543.

The $2 million or the 2.5% fee will that be recognized as an SGNA component in the quarter? Will it be run through the P&L, Mike?

R. Michael Carruthers

Yes, it will run through the P&L as interest expense spread over the term of the loan. The actual payment of it occurs really it is a net draw down. When we draw down the two $40 millions it is essentially drawing down $39 million twice.

Edward Tenthoff – Piper Jaffray and Company

Got you. So through the P&L it will be amortized over the six years?

R. Michael Carruthers

Yes.

Edward Tenthoff – Piper Jaffray and Company

And then I guess going back to 543. Last year at EORTC you guys had laid out plans for really three Phase 2 studies. And I just want to make sure that I am not missing anything. But has that program or development plan been scaled back or is it more of a serial kind of launch plan. And maybe you could kind of just touch base on those specifically.

John Yates, MB ChB, MD

Yes. So proceeding with the capcytopene study as we had indicated previously, we have really looked at some of the feasibility issues of doing any study with Erbitux and that has been the reason why we have not progressed aggressively with that is that there are some feasibility concerns in terms of enrolling that particular clinical trial. But we are looking to initiate a couple of other studies with 543 and the precise plans we are still evaluating.

Edward Tenthoff – Piper Jaffray and Company

And was the Erbitux in colorectal, remind me I believe?

John Yates, MB ChB, MD

That is right. It was a colorectal study with Erbitux and as you appreciate in the oncology world it is very rapidly changing in terms of what is the current standard of care that may be different to the standard of care six months ago or the standard of care six months from now. And as a result of those changes and input from our experts we determined there was going to be some real challenges in getting that study enrolled.

Edward Tenthoff – Piper Jaffray and Company

Great. Excellent, that is helpful, thank you.

Operator

And we will take our next question from Eun Yang, Jefferies.

Eun Yang, Ph.D. – Jefferies & Company

Thank you very much. A couple of questions on 543 again. You know, so far since it has been launched more than a year ago, Ticorva sales have not been that exciting, at least to me. And so I am just wondering if you have any insight to why that may be. And secondary, in your program of 543 what you are doing different or are you planning to do differently to expand the market opportunity going forward?

Kevin Koch, Ph.D.

You know Eun, I think Ticorva sales have maybe been a little better than, I didn’t look at the most recent quarter but I think if you annualize the fourth quarter it would ramp to about $150 million annualized which I think is pretty much on track for what people initially expected. So I am not completely sure what the most recent quarter was.

Eun Yang, Ph.D. – Jefferies & Company

It is about $40 million. I think it is about $40 million in the first quarter of this year.

Kevin Koch, Ph.D.

So that would ramp, it would be $160.

John Yates, MB ChB, MD

So as Kevin had mentioned, I think, we believe we have a superior profile with 543 relative to Lapatinive. Better exposure hitting the EGFR and ErbB-2 receptors very well and I think as you appreciate in the oncology market as virtually every other market, efficacy is king. So really it is about demonstrating efficacy with our drug and the superior overall profile. Tolerability is important as well and so far we have been well tolerated.

Eun Yang, Ph.D. – Jefferies & Company

Okay another question on the companies that JSK observed with some liver toxicity with the Tarceva treatment. Doesn’t it impact your clinical programs, I am just wondering whether you may need to increase the frequency of a blood test in mind of the liver function in going forward.

John Yates, MB ChB, MD

We are continuing to monitor safety very carefully in our clinical trials and to date we have not been concerned about a particular liver toxicity and we therefore are not particularly concerned about those data at this stage but we will continue to monitor.

Eun Yang, Ph.D. – Jefferies & Company

Okay thanks.

Operator

(Operator instructions) We will move to our next question from Howard Liang.

Howard Liang, Ph.D. – Leerink Swann & Company

Regarding the 886 or the MEK inhibitor for cancer that Astra-Zenica is developing, I think there will be an update at ASCO with the next steps. What forum would that announcement be made and also do you have a sense from your perspective what would you like them to do next. One question related to partner compounds. Will there be a milestone payment InterMune-191 when it initiates Phase 2?

Kevin Koch, Ph.D

There is a Phase 2 milestone on InterMune-191 and in regard to 886 I think I would just stay tuned as to what meeting Astra-Zenica is going to report at. I do not think they have put out anything publically on that. And you know in that regard we would like to see them move forward aggressively in combination therapy. We think the drug has characteristics that would work really well in combo therapy but you will have to stay tuned to their upcoming plans that they will announce at a scientific meeting soon.

Robert E. Conway

There were about 13 pre-clinical posters at the AACR talking about various combinations from Astra-Zenica and their collaborators. And there are several abstracts at ASCO that will be coming out in the near future. Where they will be announcing their future plans and what kind of forum we do not have that information.

Howard Liang, Ph.D. –Leerink Swann & Company

So generally it will be additional Phase 2 trials in combination with existing regimens.

Kevin Koch, Ph.D

You will have to wait for that. We do not want to preempt, you would not go to the meeting then.

Howard Liang, Ph.D. – Leerink Swann & Company

All right. For 162 MEK inhibitor for inflammation. When did the Phase 2 trial for RA start and what can you say about the coverability of 162 to date?

John Yates, MB ChB, MD

So the first patient was involved a week or so ago and we actually are kicking off having an investigators meeting in Eastern Europe yesterday and today. And the Latin American sites will be coming on board very soon. So we actually, this is a global study with U.S., Europe, and Latin America participating. We anticipate full involvement by the end of this year. In terms of the safety profile, we have evaluated all of the data so far collected in this trial including a first inpatient study which was 28 days in patients with rheumatoid arthritis and the drug was generally very well tolerated and we did not have discontinuations because of adverse events.

Howard Liang, Ph.D. – Leerink Swann & Company

Okay great. Thanks very much.

Operator

And we have a follow up question from Eun Yang, Jefferies.

Eun Yang, Ph.D. – Jefferies & Company

Thanks. On 797, you know Pfizer has a similar compound in Phase 2 they are running in rheumatoid arthritis and when I look at the patient population that they are enrolling in the study to question over to MEK inhibitor RA trial that you are conducting. So can you actually talk about what could be kind of like advantages or disadvantages between the two compounds in the treatment of RA? And secondly, how your 797 is different from Pfizer’s compound based on where you have seen to date.

John Yates, MB ChB, MD

Yes. First of all with 797 it is a very different molecule from other p38 inhibitors. Structurally it is completely different. It has some physical chemical characteristics including very high solubility, which separate it from other p38 inhibitors. It is very highly specific. It is designed to stay out of the CNS and so those characteristics we think separate it strongly from other p38 inhibitors that are either currently in development or previously have been in development.

Secondly, our approach in going for chronic inflammation is actually to be a little different to the rest of the world. Instead of going directly into rheumatoid arthritis, we have decided to focus our greatest attention on ankylosing spondylitis which is actually an interesting condition and has a prevalence which is very similar to that of rheumatoid arthritis. So in the U.S. there is probably well over one million patients at least with ankylosing spondylitis although the condition is somewhat under diagnosed and under appreciated. It is a very prevalent condition and the major cause of back pain and other arthropathies. So we think that there is an advantage of us going there, doing something a little different from where the competition has gone in the past. We think it has got a higher potential for success. But as I mentioned I think if we are successful in ankylosing spondylitis then our probability of success in rheumatoid arthritis is greatly increased as well. So I do not know if that fully answers your question?

Eun Yang, Ph.D. – Jefferies & Company

Yes, and you know Pfizer is also going after I believe their p38 inhibitor going after posthepatic neuralgia as related to COPD. Are those indications something that you might be interested?

John Yates, MB ChB, MD

So there are a lot of places where we can go with 797 but the COPD is a very difficult disorder to treat and hope to see efficacy because of the complex nature of the disease and it is not the first place I would go. And posthepatic neuralgia again there is potential down the road in terms of life cycle management but I think the issue for us is staying focused on disorders that we think are highly treatable so dental pain we have seen very good efficacy so we think we have potential in acute pain relief. And our other focus is on chronic inflammation, particularly ankylosing spondylitis with rheumatoid arthritis being a significant possibility there as well.

Eun Yang, Ph.D. – Jefferies & Company

Okay. One last question and I will get off. As far as I can tell, Array is the only company who has MEK inhibitor as well as a p38 inhibitor in development for inflammatory diseases. So I am just wondering if you have some preclinical data showing the combining those two compounds that have additive or synergistic effect and if that is something you might be thinking about in the future.

Kevin Koch, Ph.D

At the moment we are not anticipating doing any kind of combination study with these. First we would like to obtain data as monotherapy or in combination with standard of care. We have already started launching off into two unapproved agents in combinations. I think I would say that the differences between p38 and a MEK inhibitor, p38 inhibitors tend to have a better inhibition profile PGE-2 a pain mediator and TNF, where as the MEK inhibitor I would say is slightly better against things like Aisle 1 Aisle 6 and of course the MEK inhibitors have a proliferative end point. So in a lot of ways the MEK inhibitor looks very similar to what a methotrexate would have looked like ten years ago prior to its continued use in rheumatoid arthritis. So of course methotrexate was used in cancer and before it became standard of care in rheumatoid arthritis. So that is kind of the differences we see between the two mechanisms. Although they do both inhibit cytokines, they do it in different ways and lead to different results.

Eun Yang, Ph.D. – Jefferies & Company

Any preclinical study that you have done combing those two compounds?

Kevin Koch, Ph.D

Not that we have talked about publically.

Eun Yang, Ph.D. – Jefferies & Company

Okay. Alright. Thank you.

Operator

We will take our next question from Christopher Raymond, Robert Baird.

Christopher J. Raymond – Robert W. Baird & Co.

Thanks for taking the question. I am not sure I heard the complete answer to your question, or actually I should say it was Ted Tenthoff question, the other two Phase 1 B2 studies with ARRY-543, which of the two is having difficulty in rolling. Is it the Erbitux combination study or the Herceptin or is it both?

Kevin Koch, Ph.D

I think part of this is going to the Erbitux study. I think part of the issue is that the landscape is changing in particular with the K-ras mutation now perhaps those patients will not be treated with Erbitux. That is an ongoing discussion. There is data probably in ASCO coming from Biselgus lab in regard to Erbitux ARISA combinations. And so we would like to see where that ends up at ASCO and I think what we decided to do was sit and wait before we launch off into an Erbitux trial. It regards to the Herceptin trial that is certainly continues to be an attractive combination and we are exploring in which patient population that would be amenable to going into.

Robert E. Conway

But specifically John was taking about that the Erbitux trial is more on the back burner now.

Christopher J. Raymond – Robert W. Baird & Co.

Okay so it is the Erbitux study that is on the back burner but you still fully intend to begin the Herceptin combo study?

John Yates, MB ChB, MD

So, so the Herceptin patient side we can either go in combination with Herceptin or alternatively we can follow on in Herceptin failures in relatively early line patient populations. And so certainly we are looking perhaps more now at a Herceptin failure study rather than a combination with Herceptin.

Christopher J. Raymond – Robert W. Baird & Co.

Okay I see. So should we just expect then that the only Phase 2 activity you will have this year will be the cape side of being you know metastatic breast cancer study?

Kevin Koch, Ph.D

Well we will clearly initiate that study. In fact probably this quarter that gets initiated. And we will you know solidify plans on the Herceptin things by the end of the year.

Christopher J. Raymond – Robert W. Baird & Co.

Okay thanks.

Operator

And we have no other questions at this time.

Robert E. Conway

Great, well thanks operator. Let me just conclude by thanking you for being on the call today and thanking our employees for their dedication, creativity, and hard work. Another quarter and I think we have made great progress this quarter. And I would also like to thank our partners and shareholders for their continued confident and support. Thank you very much and we look forward to seeing you at ASCO and other upcoming meetings. We will talk to you about 90 days from now.

Operator

And that concludes our conference for today. We thank you for attendance and have a nice day.

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Source: Array BioPharma, Inc., Q3 Earnings Call Transcript
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