NEW YORK — Shares of drug developer Array BioPharma Inc.
jumped Monday after the company said its drug candidate reduced pain in a midstage study and it will next compare the treatment with Pfizer Inc.’s Celebrex.
Shares surged $1.11, or 19.8 percent, to $6.73 in midday trading. The stock has traded between $5.03 and $14.59 over the last 52 weeks.
The experimental drug, ARRY-797, reduced patients’ pain following dental surgery, in the Phase II clinical trial. Boulder, Colo.-based Array said it will conduct another midstage study, comparing the drug candidate with Celebrex in treating inflammatory pain. Pfizer reported $2.29 billion in Celebrex sales in 2007.
Lehman Brothers analyst Dr. Jim Birchenough reaffirmed an “Overweight” rating with a $16 price target for Array, citing the potential for a competitor with Celebrex.
“With proof-of-concept established in a robust pain model we expect rapid expansion of development to large areas of unmet need in pain and inflammation,” he said in a note to investors.
Meanwhile, Banc of America Securities analyst William T. Ho said the dental pain results bolster confidence in ARRY-797 for future studies, including a comparison with Celebrex. He maintained a “Buy” rating with a $14.50 price target.
Collins Stewart LLC analyst Andrew Fein also reaffirmed a “Buy” rating, with a $16 price target, citing the pain drug candidate’s potential for success in future studies.
