May 20, 2009 (FinancialWire) — Array BioPharma Inc. (NASDAQ: ARRY) (Current Market Cap: US$159.72 Mil.) has received an additional $40 million funding commitment from Deerfield Management, a healthcare investment organization and one of Array’s largest shareholders.

The commitment is in addition to an $80 million funding that Array received from Deerfield in 2008. The company said that, together with existing capital, the funds will be available to advance Array’s pipeline of small molecule drug programs in development.

In connection with Array’s right to draw the additional funds, Deerfield will receive a transaction fee of $500,000 and Array has exchanged warrants to purchase six million shares of Array’s common stock at an exercise price of $7.54 per share for warrants to purchase six million shares of its common stock at an exercise price of $3.65 per share. The stock was previously issued to Deerfield in connection with the prior facility.

In addition, as part of the new agreement, the amount of cash, cash equivalents and marketable securities Array is required to maintain under both facilities was reduced from $40 million to $20 million.

Should Array elect to draw down the additional $40 million, the interest rate on the outstanding $80 million principal will decrease from 8.5 percent to 7.5 percent annually and the new interest rate will also apply to the additional funds.

Boulder, Colorado-based Array BioPharma is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer, inflammatory and metabolic diseases.

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