UPDATE 1-Array says AstraZeneca not taking AZD6244 to Phase III

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Dec 19 (Reuters) - Array BioPharma Inc (ARRY.O: Quote, Profile, Research) said AstraZeneca Plc (AZN.L: Quote, Profile, Research), the licensee of its anti-cancer drug candidate, does not plan to take it into a late phase trial in patients with advanced melanoma.

The company said the decision was after a randomized Phase II study comparing anti-cancer drug AZD6244 monotherapy with an alkylating agent.

AstraZeneca is exploring other options to further develop the compound, the drug discovery company said in a statement.

AZD6244 is a selective MEK (MAP-erk kinase) inhibitor that was in-licensed by AstraZeneca from Array in December 2003 together with two second-generation compounds.

Array said AstraZeneca completed analysis on two smaller studies in third line advanced colorectal cancer and second line advanced non-small cell lung cancer, and neither of these studies reached their primary endpoint.

However, there was evidence of anti-tumor activity in the second line advanced non-small cell lung cancer study, it added.

Shares of Array BioPharma, which have fallen about 16 percent so far this year, lost about 18 percent of their market value to $9.05 in late electronic trade after closing at $11.02 Wednesday on the Nasdaq.