July 2013, Array BioPharma (ARRY) and Celgene Corporation (CELG) and Celgene Alpine Investment Co., LLC (collectively “Celgene”) entered into a Drug Discovery and Development Option and License Agreement to collaborate on development of an Array invented preclinical development program targeting a novel inflammation pathway.
The agreement provides Celgene an option to select multiple clinical development candidates that Celgene may further develop on an exclusive basis under the agreement. Celgene also has the option to obtain exclusive worldwide rights to commercialize one or more of the development compounds it selects upon payment of an option exercise fee to Array.
Array is responsible for funding and conducting preclinical discovery research on compounds directed at the target, and Celgene is responsible for all clinical development and commercialization of any compounds it selects.
Upfront Payment $11MM nonrefundable, received 1Q14. The majority of the upfront payment received is for the performance of research services
Milestone Payment $376MM based upon achievement of development, regulatory and sales objectives identified in the agreement, plus royalties on net sales of all drugs.