Array BioPharma announced it has entered into an agreement with Amgen, Inc that gives Amgen worldwide rights to Array’s small molecule glucokinase activator program. This program includes ARRY-403, a molecule currently in Phase I clinical trials in patients with Type 2 diabetes. Glucokinase activators are designed to increase the activity of glucokinase, an enzyme that both senses glucose in the pancreas stimulating insulin production and increases glucose utilization and decreases glucose production in the liver. The agreement grants Array, which reported a net loss of $33.7 million and a cash balance $77.3 at the close of its last fiscal quarter, an upfront payment of $60 million with the potential for additional payments contingent on clinical and commercial milestones. The agreement designates Array as responsible for completing the Phase1 trial on ARRY-403 with Amgen picking up future development. Array, based in Boulder, Colorado, will receive double digit royalties on sales of ARRY-403 and has the option to co-promote the drug in the US. Additionally, Amgen will fund some Array employees investigating next generation glucokinase activators as part of a two year research collaboration.