A Hold recommendation has recently been issued to biotech firm Array BioPharma, Inc. (ARRY) by Zacks senior healthcare sector analyst Grant Zeng, CFA. Here's what his latest update had to say:

'Array BioPharma, Inc. focuses on developing orally active drugs by utilizing the latest advances in chemistry, biology, and informatics. The company utilizes its proprietary discovery platform to enhance small molecule candidates for in-house or collaborative research and development programs.'

'We are encouraged by the recent progress in a number of collaborations, but would like to see more data on the early-stage pipeline before we recommend investors to purchase shares of Array. We are encouraged by the strong discovery platform and growing service collaboration business.'

'The company is currently seeking to enter into new drug discovery collaborations which will provide the company with research funds. Albeit at a very early-stage, the company possesses an intriguing pipeline of small molecule candidates for cancer and inflammatory diseases. Yet, given the early-stage nature of the pipeline, and the company's reliance on third-party clinical support, Array possesses a higher risk profile than most investors may be interested in undertaking.'

'We maintain our Hold rating on shares of Array BioPharma with a six-month price target of $11.5. Our $11.50 price target corresponds to a 15.2x P/S ratio to our 2008 total revenue of $35.6 million. The 15x P/S ratio is at the middle of average biotech P/S between 10x and 20x.'