Edison Investment Research, a leading international investment
research firm, announces the initiation of coverage of ArQule
(NASDAQ:ARQL), a US biopharmaceutical company.
Edison has today published a comprehensive report examining the
investment merits of ArQule, focusing on the potential of its lead
program, tivantinib, which is partnered with Daiichi Sankyo and Kyowa
Hakko Kirin. In the reportBruised
but not done, Edison biotech analyst Dr Jason Zhang argues that
the recent negative results in two Phase III trials of tivantinib in
non-small cell lung cancer do not prejudge the potential outcome of a
planned Phase III trial of tivantinib in hepatocellular carcinoma. Dr
Zhang argues that many high-profile oncology drugs have failed in one or
more cancer indications but succeeded in others, citing 24 examples
involving six leading oncology drugs. Based on a risk-adjusted NPV
model, Edison values ArQule at $376m or $5.40/share fully diluted,
almost 50% above the current share price.
The launch of coverage on ArQule is part of a programme of research
initiations on biotech companies worldwide. Edison provides research
coverage on over 70 biotech companies in Europe, North America and
Australia. Its biotech research team has a particular focus on small- to
mid-cap companies active in oncology, with 20 companies under active
coverage and 12 more covered by ad-hoc reports. All reports Edison
publishes are available to download free of charge from its website www.edisoninvestmentresearch.co.uk.
Edison has pioneered a scientific detail-oriented approach to analysing
companies in the biotech sector that aims to inform investors while
providing a realistic assessment of the competitive strengths and
threats to key drug development programmes, delivered in a concise and
non-promotional manner. All facts are carefully sourced and the analysis
is underpinned by comprehensive and rigorous financial models. Edison’s
reports provide an overall company valuation without any specific stock
About Edison Investment Research
Edison Investment Research is a leading international investment
research company. The team of more than 95 includes over 60 analysts
supported by a department of supervisory analysts, editors and
assistants. Edison writes on more than 400 companies across every sector
and its research is read by institutional investors, alternative funds
and wealth managers in more than 100 countries. Edison, founded in 2003,
has offices in London, New York, Sydney and Wellington and is authorised
and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not a US investment adviser or broker-dealer and does not
provide investment advice. Edison’s reports are not solicitations to buy
or sell any securities.
ArQule is a US biotech company engaged in development of small molecule
drugs for cancer. Its lead product, tivantinib, is entering a pivotal
Phase III trial for HCC and is in multiple Phase II studies in other
indications, including mCRC and mCRPC.