What happened

Shares of Array BioPharma (NASDAQ:ARRY), a cancer-focused clinical-stage biotech, dropped nearly 14% in July, according to data from S&P Global Market Intelligence.

So what

Here's a review of the two company announcements made during the month:

  • Array submitted its two lead product candidates -- binimetinib and encorafenib -- to the FDA for review to treat patients with BRAF-mutant metastatic melanoma. The company's submissions were based on phase 3 results from its COLUMBUS study. That trial demonstrated that patients who used binimetinib and encorafenib showed significantly longer progression free survival rates when compared to patients receiving Roche's Zelboraf (vemurafenib).
  • Array signed a new collaboration agreement with biotech giant Amgen (NASDAQ:AMGN) aim at the "discovery and development of novel drugs for autoimmune disorders." The deal calls for Amgen and Array to collaborate on preclinical development. If all goes well, Amgen will be responsible for clinical development and any product commercialization. The deal entitles Array to milestone payments and royalties on any future sales.

Given the upbeat news items, I'm once again left scratching my head as to why shares fell so much last month.

A man scratching his head in front of lots of question marks on a chalk board.

Image source: Getty Images.

Now what

Short-term share price movements aside, news of the FDA submission make this an exciting time to be an Array shareholder. Binimetinib and encorafenib performed well in the clinic and look like they could be the real deal. If true, then Array could finally be on the cusp of transitioning itself into a commercial stage enterprise. What's more, it is great to see that yet another giant healthcare company has decided to partner with Array. For those keeping track at home, Array now counts companies like Roche, Celgene, Eli Lilly, AstraZeneca, Pierre Fabre, Amgen, and more as partners. That's quite an impressive list.

Overall, the long-term thesis for owning Array's stock continues to look intact. If you were bullish of Array prior to this double-digit drop then I see no reason to change your view.

Brian Feroldi owns shares of Celgene. The Motley Fool owns shares of and recommends Celgene. The Motley Fool has a disclosure policy.