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 report Bruised 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.
For the full report see: www.edisoninvestmentresearch.co.uk/research/company/arqule
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 recommendation.
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.