ArQule Announces $15.7 Million Private Placement of Common Stock
October 16 2017 - 7:00AM
Business Wire
Company also raises approximately $4M through
unrelated business development activities and other sources during
September-October
ArQule, Inc. (NASDAQ: ARQL) today announced the closing of a
private placement with certain institutional investors, with
leading participation by BVF Partners L.P., pursuant to which the
Company raised gross proceeds of approximately $15.7 million
through the sale of 13,938,651 shares of common stock and 3,123,674
warrants. ArQule estimates the net proceeds from this offering will
be approximately $15.5 million. The warrants have an exercise price
of $1.75 per share, will be exercisable immediately and expire four
years after the date of issuance.
Taking into account the net proceeds from the private placement,
unrelated business development activities and other sources of
funding, ArQule now expects to end 2017 with
between $38 and $40 million in cash and
marketable securities. Based on this estimate, the company
currently anticipates cash and marketable securities to provide
funding into 2019.
ArQule intends to use the net proceeds from this offering to
advance clinical trials related to its proprietary pipeline,
including derazantinib, ARQ 092, ARQ 531 and ARQ 751, and for
general corporate purposes, including working capital.
Through the first part of 2019, ArQule expects to achieve the
following clinical milestones:
- ARQ 531: Obtain PK/PD data from
phase 1a trial in patients with refractory B-cell malignancies and
initiate the phase 1b proof of concept trial
- ARQ 092: Present regulatory
authorities with proof of concept data with the purpose of
initiating a registrational trial in Proteus syndrome
- Derazantinib: Complete
enrollment of patients needed to perform the interim analysis of
the registrational trial for intrahepatic cholangiocarcinoma
“ArQule’s fully-owned clinical pipeline offers a compelling
investment opportunity for BVF,” said Mark Lampert, Founder and
President of BVF Partners L.P. “We are pleased to have supported
the company as an investor for over a decade and look forward to
continuing our relationship at this exciting time as the Company
continues to advance its programs in oncology and rare
diseases.”
“With support from our core investors, ArQule is now financed
through a number of meaningful clinical inflection points,"
said Paolo Pucci, Chief Executive Officer of ArQule. "We
are focused on progressing our clinical trials and generating data
on derazantinib, ARQ 092 and ARQ 531."
About ArQule
ArQule is a biopharmaceutical company engaged in the research
and development of targeted therapeutics to treat cancers and rare
diseases. ArQule’s mission is to discover, develop and
commercialize novel small molecule drugs in areas of high unmet
need that will dramatically extend and improve the lives of our
patients. Our clinical-stage pipeline consists of five drug
candidates, all of which are in targeted, biomarker-defined patient
populations, making ArQule a leader among companies our size in
precision medicine. ArQule’s proprietary pipeline includes:
Derazantinib (ARQ 087), a multi-kinase inhibitor designed to
preferentially inhibit the fibroblast growth factor receptor (FGFR)
family, in phase 2 for iCCA and in phase 1b for multiple oncology
indications; ARQ 092, a selective inhibitor of the AKT
serine/threonine kinase, in a phase 1/2 company sponsored study for
Overgrowth Diseases, in a phase 1 study for ultra-rare Proteus
syndrome conducted by the National Institutes of Health (NIH), as
well as in multiple oncology indications; ARQ 751, a next
generation AKT inhibitor, in phase 1 for patients with AKT1 and
PI3K mutations; and ARQ 761, a β-lapachone analog being evaluated
as a promoter of NQO1-mediated programmed cancer cell necrosis, in
phase 1/2 in multiple oncology indications in partnership with the
University of Texas Southwestern Medical Center. In addition, we
have advanced ARQ 531, an investigational, orally bioavailable,
potent and reversible inhibitor of both wild type and C481S-mutant
BTK, in phase 1 for patients with B-cell malignancies refractory to
other therapeutic options. ArQule’s current discovery efforts are
focused on the identification and development of novel kinase
inhibitors, leveraging the Company’s proprietary library of
compounds. You can follow us on Twitter and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements,
including, without limitation, those related to the achievement of
certain clinical and regulatory milestones with derazantinib (ARQ
087), ARQ 092 and ARQ 531, use of offering proceeds and updated
financial guidance with respect to cash at year end and the
Company’s ability to fund operations with current cash and
marketable securities. These statements are based on the Company's
current beliefs and expectations, and are subject to risks and
uncertainties that could cause actual results to differ materially.
Positive information about pre-clinical and early stage clinical
trial results does not ensure that later stage milestones will be
met or that later stage or larger scale clinical trials will be
successful. Moreover, derazantinib, ARQ 092, and ARQ 531 or other
programs may not demonstrate promising therapeutic effect; in
addition, they may not demonstrate appropriate safety profiles in
current or later stage or larger scale clinical trials as a result
of known or as yet unanticipated side effects. The results achieved
in later stage trials may not be sufficient to meet applicable
regulatory standards or to justify further development. Problems or
delays may arise prior to the initiation of planned clinical
trials, during clinical trials or in the course of developing,
testing or manufacturing these compounds that could lead the
Company or its partners and collaborators to fail to initiate or to
discontinue development. Even if later stage clinical trials are
successful, unexpected concerns may arise from subsequent analysis
of data or from additional data. Obstacles may arise or issues may
be identified in connection with review of clinical data with
regulatory authorities. Regulatory authorities may disagree with
the Company's or its partners' view of data or require additional
data or information or additional studies. In addition, the planned
timing of completion of clinical trials for ARQ 092 in Proteus
syndrome is dependent in part on the National Institutes of
Health, our collaborator responsible for the phase 1 trial in
Proteus syndrome, to enroll patients, enter into agreements with
clinical trial sites and investigators, and overcome technical
hurdles and other issues related to the conduct of the trials for
which each of them is responsible. There is a risk that these
issues may not be successfully resolved. In addition, we are
utilizing a companion diagnostic to identify patients in our
registration trial with derazantinib in intrahepatic
cholangiocarcinoma with FGFR 2 fusions, and we are utilizing or
expect to utilize diagnostic tools in our other biomarker-guided
clinical trials with ARQ 087, ARQ 092, ARQ 751 and ARQ 531; we or
our collaborators may encounter difficulties in developing and
obtaining approval for companion diagnostics, including issues
relating to access to certain technologies,
selectivity/specificity, analytical validation, reproducibility, or
clinical validation. Any delay or failure by our collaborators or
ourselves to develop or obtain regulatory approval of companion
diagnostics could delay or prevent approval of our product
candidates. Drug development involves a high degree of risk.
Only a small number of research and development programs result in
the commercialization of a product. Furthermore, the Company’s
expectations regarding its use of cash are subject to numerous
risks and uncertainties, including, without limitation, those set
forth above. The Company may not have the financial or human
resources to successfully pursue all of its drug discovery programs
in the future. For more detailed information on the risks and
uncertainties associated with the Company's drug development,
financial condition and other activities, see the Company's
periodic reports filed with the Securities and Exchange
Commission. The Company does not undertake any obligation to
publicly update any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20171016005365/en/
ArQule, Inc.Dawn Schottlandt, 781-994-0300Vice President,
Investor Relations/Corp. Communicationswww.arqule.com
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