Array BioPharma (ARRY) MEK Deal 'Favorable', BMO Capital Says

BMO Capital analyst Jim Birchenough boosted his price target on Array BioPharma (NASDAQ: ARRY) to $5.00 (from $4.00) reached an agreement with Novartis to regain full rights to binimetinib, a MEK inhibitor. However, the analyst stopped short of upgrading the name and reiterated a Market Perform rating.

Birchenough commented, "We believe the deal is clearly favorable to ARRY with upfront cash sufficient to fund multiple proprietary programs and ‎with vastly improved MEK inhibitor economics. That being said, while ARRY is now better levered on the upside to any product success, we maintain a cautious view on both binimetinib as well as programs in myeloma and MDS. At present, ARRY assets appear undifferentiated, in crowded markets and we continue to take a wait-and-see approach pending additional data."

For an analyst ratings summary and ratings history on Array BioPharma click here. For more ratings news on Array BioPharma click here.

Shares of Array BioPharma closed at $3.91 yesterday.

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