Oppenheimer Maintains ArQule (ARQL) Outperform Rating

Oppenheimer & Co analysts Bret Holley, Matthew Lowe, Job Taylor and Brian Abrahams maintained their Outperform rating for shares of ArQule Inc (Nasdaq: ARQL), with a price target of $11 per share.

The analysts said that they expect ArQule Inc to initiate a ph.III trial of '197+Tarceva in non-squamous NSCLC.

The Oppenheimer & Co analysts wrote, "detailed ph.II data for ARQ 197+Tarceva in second/third-line NSCLC will bepresented at ASCO on 6/5. Oncologists we have spoken with are very encouraged by the top-line results from the ph.II trial, showing 16.1 wks PFS benefit for ARQ 197+Tarceva vs. 9.7 wks for Tarceva alone (18.9 wks vs. 9.7 wks in non-squamous NSCLC pts). Based on these discussions and strong top-line data, we believe detailed ph.II results will show compelling efficacy for ARQ 197+Tarceva, especially in non-squamous NSCLC, and a favorable safety profile. We believe the data at ASCO will generate further enthusiasm for '197's prospects among physicians and investors. This should translate to significant upside in ARQL, and we would position in the stock ahead of the meeting."