William Blair & Company Initiates Coverage of Array BioPharma Inc. With Outperform Rating

Business Wire, Feb 7, 2008

CHICAGO -- William Blair & Company initiated research coverage of Array BioPharma Inc. (Nasdaq: ARRY) ($6.42) with an Outperform rating and an Aggressive Growth company profile. Array BioPharma, based in Boulder, Colorado, is focused on developing small-molecule drugs for the treatment of cancer and inflammatory disease.

"Array's unique drug discovery capability and broad pipeline of drugs targeting multiple cancer types and inflammatory diseases are the basis for our initiation with an Outperform rating," analyst John Sonnier said. "We believe the company's early but deep pipeline contains significant value, which will be catalyzed over the next 12-18 months by continued clinical progress and potential partnerships. Array has one of the most efficient research-and-development programs in the small-cap biotech universe, in our opinion. The company plans to enter one to three new compounds into development annually at an estimated cost of less than $15 million per IND and has established partnerships with some of the leading companies in oncology."

Sonnier continued, "Array's pipeline leverages the interplay between oncology and inflammation, two of the most rapidly growing markets in biotechnology. At a $176 million enterprise value, we believe a recent clinical setback provides an attractive entry point in this well-run small-cap biotech company with a diverse pipeline, strong partnerships with industry-leading companies, and strong financial position, with $1.3 billion in potential milestone payments."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. (www.williamblair.com) is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost.

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