UPDATE: Global Hunter Initiates ArQule at Accumulate

Global Hunter is out with its report today on ArQule (NASDAQ: ARQL), initiating ARQL at Accumulate.

In a note to clients, Global Hunter writes, "We are initiating coverage of ARQL with an Accumulate rating and $11 price target. ARQL is focused on the development of small molecule drugs for cancer. We believe the company's lead drug candidate, tivantinib, for non-small cell lung cancer, represents a promising new therapy for 2nd-line and later therapy. ARQL and partner Daiichi Sankyo are currently conducting a phase III trial in 2nd-line NSCLC, with interim data possible in 2012. The trial is being conducted under an FDA Special Protocol Assessment and the companies have guided to an approximate completion date in the 2013 timeframe. If successful, we would anticipate market entry for tivantinib in the 2014-2015 timeframe. Aside from the NSCLC phase III data, nearer-term catalysts include phase II data for tivantinib in second-line liver cancer, expected 2H11, as well as second-line colorectal cancer data, expected 1H12. In addition, various phase I combination studies are ongoing, with phase II decisions expected over the next 12 months."

At the time of posting, shares of ARQL were trading at $6.67, up 2.46% from Wednesday's close.