Array BioPharma Inc. shares rose Tuesday after the company secured $80 million in financing for its drug pipeline.
Array is receiving a six-year loan from Deerfield Management, and will use the money to develop its treatments for cancer and pain and inflammation.
The stock gained 15 cents, or 2.5 percent, to $6.12.
Array's pipeline includes four cancer drugs. ADZ6244 is in midstage testing to treat a variety of tumors, while ARRY-543 and ARY-520 are in early-stage testing. The company is preparing to begin an early-stage trial for ARRY-380, and hopes to move ARRY-543 into a midstage trial for metastasized breast cancer later this year.
The Boulder, Colo., company says the pain drug candidate designated ARRY-797 was successful in treating pain caused by molar extraction in a midstage trial. It plans to test the drug as a treatment for inflammatory pain later this year.
UBS analyst Graig Suvannavejh said the loan is a "strong vote of confidence for (Array) management" following disappointing results from a clinical trial of another candidate, ARRY-886, in December. He added that the company's pipeline is making progress, and said Array should present more data on ARRY-797 this week.
Deerfield is the second-largest owner of Array stock, holding 4.7 million of the company's roughly 47.4 million shares.
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