What happened

After Array BioPharma (NASDAQ:ARRY) announced quarterly results and shared some clinical news with investors on Tuesday, shares of the cancer-focused clinical-stage biotech jumped and were up 18% as of 3:10 p.m. EST.

So what

Here's a quick review of the headline numbers from Array's fiscal second quarter:

  • Revenue grew 42% to $42.2 million. The increase was caused by the recognition of a $7.9 million payment related to its deal with Asahi Kasei Pharma, plus higher reimbursement rates from Novartis. This number was far higher than the $26.7 million that Wall Street had expected.
  • Net loss was $34.1 million, or $0.17 per share. This also compared favorably to the $0.23 loss that analysts had projected.
  • Array ended the quarter with $420 million in cash.

In addition to reporting quarterly results, Array also announced results of the planned analysis of overall survival from its pivotal Columbus study. This phase 3 trial is evaluating the use of Array's lead compounds -- encorafenib and binimetinib -- in combination as a treatment for BRAF-mutant melanoma when compared to Roche's current top-selling treatment, Zelboraf.

The data released today showed that the combination of encorafenib and binimetinib significantly reduced the risk of death when compared to Zelboraf. Specifically, the overall survival time for patients who used Array's combination therapy were 33.6 months. That was almost double the 16.9 months rate observed in the group taking Zelboraf.

Traders cheered the double dose of good news.

Man in suit making a thumbs-up gesture with money in background

Image source: Getty Images.

Now what

Today's update should provide investors with increased confidence about Array's chances of regulatory success with encorafenib and binimetinib. Management reaffirmed that they expect to have a go/no-go decision in hand by June 30 this year. Array also stated that the FDA is not planning on holding an advisory committee meeting to discuss the application, which is yet another positive sign that the drugs should get the thumbs-up with ease.

However, while binimetinib and encorafenib are looking more and more like winners, I think Array's stock has a lot of the good news already priced in. That's why I'll continue to take a pass on Array for the time being.

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.