Array BioPharma, Inc. (NASDAQ: ARRY) and Celgene Corp. (NASDAQ: CELG) announced a worldwide strategic collaboration focused on the discovery, development and commercialization of novel therapeutics in cancer and inflammation. Celgene will make an upfront payment of $40MM to Array, in return Array will grant Celgene an option to select drugs developed under the collaboration that are directed to two of four mutually selected discovery targets. Array will be responsible for all discovery and clinical development through Phase I or Phase IIa. Celgene will then have the option to select drugs resulting from up to two of these four therapeutic programs and will receive exclusive worldwide rights to those drugs, except for Array's limited co-promotional rights in the U.S. Array is also entitled to receive, for each drug, potential milestone and royalty payments of as much as $300MM if certain commercial milestones are reached.
A great deal with a great partner. For those who pay attention to Mad Money Kramer is particularly bullish on the pair.