Sunday, June 25, 2006

Array Biopharma Pads War Chest

BioMed Realty Trust, Inc. (NYSE: BMR) a real estate investment trust focused on the life science industry has entered into an agreement to acquire Array BioPharma's (Nasdaq: ARRY) approximately 150,000 square-foot, four-building campus in Boulder and 78,000 square-foot, two-building campus in Longmont.

The transactions are $45.0 million for the Boulder campus and $20.8 million for the Longmont campus for a total price tag of $65.8 million. Array will then fully lease back both of the properties under a new ten-year triple-net lease through 2016. The deal which is expected to close in 3Q06 will net Array approximately $32.0 million to cash which will be allocated towards aiding the advancement of the pipeline, this according to CEO Robert Conway.

Perhaps one may view this financing as a twist on the PIPE (private investment in public entity) and instead call it a pIPE (PUBLIC investment in public entity). Or maybe it is just called smart bio-business and this comment really illuminates my lack of sophistication. Regardless, any financing that nets tens of millions targeted for clinical development is simply…exciting. We are rooting hard for Array’s lead compounds targeting, MEK for oncology and inflammation, and targeting ErbB-2 for oncology to continue to demonstrate efficacy through their clinical trials.

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