Array BioPharma Inc. expanded its oncology collaboration with Genentech Inc. for the second time, securing a potential $50 million in additional research funding over the next three years.

Genentech will continue to have access to Array's drug discovery platform and will be responsible for clinical development and commercialization of any products. Array also is entitled to receive milestone payments based on clinical achievements, as well as royalties on net sales.

The agreement originally was formed in January 2004 to advance two of Array's oncology programs into clinical development. (See BioWorld Today, Jan. 7, 2004.)

"Since that time, we have had a great relationship with them, and they have added a third target to the collaboration," said Robert Conway, CEO of Boulder, Colo.-based Array.

The third oncology program, focused on a protein target, was added through an expanded agreement in April. With the latest expansion, Genentech has confirmed its interest in the three targets and has committed at least three years to discovering small-molecule drugs for cancer. The South San Francisco-based company has rights to the programs for all indications, although the initial focus is on oncology.

"They have increased the number of scientists that they want to have devoted to these programs," Conway told BioWorld Today, "and expanded it for three years."

Both companies have kept mum about the targets, specific indications and compounds themselves, although Conway did say that none of them are yet in the clinic.

Array also is working with AstraZeneca plc, of London, in oncology. The companies formed an agreement in December 2003 to develop Array's MEK (mitogen-activated extracellular signal-regulated kinase) program in oncology, which also gives AstraZeneca exclusive worldwide rights to the lead candidate, ARRY-142886, as well as rights to certain second-generation compounds. (See BioWorld Today, Dec. 19, 2003.)

ARRY-142886 is in a Phase Ib trial for a number of different tumor types and represents Array's most advanced program. The company intends to move four other drug candidates into the clinic by the end of 2006, starting with its dual-inhibitor program of EGFR/ErbB-2, key growth factor receptor tyrosine kinases, for cancer. The lead product is known as ARRY-334543.

"That will go into the clinic probably in the next month in both the U.S. and Canada," Conway said.

During the first half of 2006, Array expects to bring its MEK program into the clinic for inflammation, an area in which the company retained all rights from AstraZeneca. The start of a MEK trial would soon be followed by a clinical study focused on a p38 candidate for inflammation, and then later one focused on an inhibitor of ErbB-2 in cancer.

Founded in 1998, Array went public in November 2000 and has 269 full-time employees. It raised $67 million net through an offering of 9.2 million shares, including an overallotment option, in December 2004. That money was expected to take the company through four years of operations. (See BioWorld Today, Dec. 10, 2004.)

As of the end of Array's fiscal year on June 30, the company had about $93 million in cash and marketable securities.

Array's stock (NASDAQ:ARRY) climbed 53 cents Thursday to close at $6.80, while Genentech's stock (NYSE:DNA) rose $1.65 to close at $83.78.