(Corrects headline and paragraph 1 to clarify that the
termination of Amgen agreement and job cuts were unrelated)
Aug 7 Array Biopharma said partner
Amgen Inc plans to end an agreement to develop and
market Array's drug to treat Type 2 diabetes.
Array also said that it would cut 20 percent of its
workforce as it focuses more on proprietary research.
Array shares fell as much as 7 percent to $6.12 in trading
after the bell on Wednesday.
The company said it would record a one-time restructuring
charge of $2.7 million in the first quarter of fiscal 2014.
The company said it would have 200 employees after cutting
50 jobs. Most of the job cuts will be in the company's drug
Array and Amgen entered into the agreement in December 2009,
under which Array received an upfront payment of $60 million and
milestone payments of $8.5 million.
Amgen was funding a number of full-time employees as part of
the agreement to identify more such drugs.
The drug, AMG 151, is being tested by Amgen in a mid-stage
trial in patients with Type 2 diabetes.
The agreement will end on October 5, Array said in a
regulatory filing. (link.reuters.com/nug32v)
Shares of the company closed at $6.55 on Wednesday on the
(Reporting By Vrinda Manocha in Bangalore; Editing by Saumyadeb