Boulder-based Array BioPharma (Nasdaq: ARRY) has spun out a new entity to research and develop drugs for rare diseases, according to documents filed with the U.S. Securities and Exchange Commission on Friday and first reported by finance news site Seeking Alpha.
SEC filings show Array, which developed targeted drugs for cancer treatment, gave rights and assets from its ARRY-797 drug program to a wholly owned subsidiary, Yarra Therapeutics. ARRY-797 is currently in Phase 2 trials for patients with a rare form of cardiomyopathy, a catch-all name for diseases of the heart muscle.
Whether Yarra will focus on additional diseases is unclear; SEC documents say only that its assets "include" the ARRY-797 program. Officials for Array were unavailable for comment.
Boston-area pharmaceutical executive Bryan Stuart was selected to head up Yarra. Stuart took up the post this month, according to his LinkedIn profile. He could not be reached for comment.
Array funded the Yarra spinoff with a $10 million convertible note sold to San Francisco private equity firm Redmile Group in September 2016. Stuart's duties, as outlined in SEC documents, will include raising funds to cover operating expenses. Array will provide "temporary payroll, accounting, development and certain other administrative and scientific services," the filings state.
Shares of Array jumped slightly on the news, rising nearly 12 percent since Friday's disclosure. They closed at $12.51 on Tuesday.
Array's stock is up 40-plus percent for the year, following announcements of partnerships with Pfizer, Bristol-Myers Squibb and Merck, as well as positive results for several of its drugs. The Food and Drug Administration in September accepted Array's new drug applications for binimetinib and encorafenib in patients with a specific type of advanced melanoma. The agency's review should be complete by June.