Array Biopharma (ARRY) Tops Q2 EPS by 10c, Revenues Beat
Array Biopharma (NASDAQ: ARRY) reported Q2 EPS of ($0.05), $0.10 better than the analyst estimate of ($0.15). Revenue for the quarter came in at $82.5 million versus the consensus estimate of $52.45 million.
Second Quarter of Fiscal 2019 Compared to First Quarter of Fiscal 2019
- Net Product Sales for BRAFTOVI + MEKTOVI for the second quarter of fiscal 2019 was $22.7 million, compared to $14.0 million for the first quarter of fiscal 2019.
- Total Revenue for the second quarter of fiscal 2019 was $82.5 million, compared to $56.9 million for the prior quarter. The increase was primarily due to higher product sales and recognition of $40 million of milestone revenue from Loxo Oncology, which was partially offset by reduced reimbursement revenue from Novartis and milestones earned in the previous quarter.
- Cost of Goods Sold related to our product revenues for the second quarter of fiscal 2019 was $0.8 million which represents 3.5% of net sales, compared to $0.2 million for the prior quarter.
- Research and development expense for proprietary programs for the second quarter of fiscal 2019 was $62.1 million, compared to $55.6 million for the prior quarter. The increase was primarily driven by proprietary trial activities including the BEACON CRC trial, which was partially offset by lower activity on the Novartis transitioned studies.
- Selling, General and Administrative for the second quarter of fiscal 2019 was $30.5 million, compared to $24.9 million for the prior quarter. The increase was mostly driven by costs associated with BRAFTOVI + MEKTOVI commercial and sales activities.
- Net loss for the second quarter of fiscal 2019 was $11.4 million, or ($0.05) per share, compared to $24.8 million, or ($0.12) per share, for the prior quarter. The decrease in net loss was primarily due to increased product sales and increased milestone revenue from Loxo Oncology, which was partially offset by increased operating expenses and reduced reimbursement revenue from Novartis.
- Cash, cash equivalents and marketable securities as of December 31, 2018 were $478 million.
"We continue to be pleased with demand following the U.S. launch of BRAFTOVI + MEKTOVI for patients with BRAF-mutant metastatic melanoma, which delivered $22.7 million in net product sales during the second commercial quarter," said Ron Squarer, Chief Executive Officer. "Separately, we were excited to report an unprecedented 15.3 months mature median overall survival from the safety lead-in of the Phase 3 BEACON CRC trial and we recently completed enrollment of the randomized portion of the trial. We look forward to the interim analysis in the first half of 2019."
For earnings history and earnings-related data on Array Biopharma (ARRY) click here.