Thomas Weisel upgraded Array Biopharma (ARRY ) to peer perform.
Array and Genentech will advance their oncology programs. Analyst Paul Knight says he upgraded Array from underperform on increased confidence in its drug-development program and recent collaboration announcements.
He thinks Array's agreement with AstraZeneca to develop its lead oncology drug program is a significant milestone in Array's transition, and helps to validate the company's Discovery Platform as a viable means of discovering orally active drug candidates. In the agreement with Genentech, Array will receive an upfront payment and research funding, with the potential to receive development milestones and royalties on resulting product sales.