Array BioPharma to regain global rights to binimetinib from Novartis

Shares of US biotech firm Array BioPharma (Nasdaq: ARRY) leapt 22.8% to $4.80 in after-hours trading on Wednesday, after it said it has reached a definitive agreement with Swiss pharma giant Novartis (NOVN: VX) to regain full worldwide rights to binimetinib, a MEK inhibitor in three Phase III trials for NRAS-mutant melanoma and other cancers.

The re-acquisition of binimetinib by Array was largely expected after Novartis’ deal with the UK’s GlaxoSmithKline which included the acquisition of GSK's cancer drug business, that is expected to close in the first half of 2015.

“Regaining full worldwide rights to binimetinib, an innovative late-stage oncology product, represents a tremendous opportunity for Array," said Ron Squarer, chief executive of Array BioPharma, adding: "Binimetinib is currently advancing in three Phase III clinical trials and, we expect to file for our first regulatory approval during the first half of 2016. With this agreement, we are in a strong position to successfully develop and commercialize binimetinib to the benefit of cancer patients."