ArQule's (ARQL) Tivantinib Still Has Potential in HCC - InvestingChannel

ArQule’s (ARQL) Tivantinib Still Has Potential in HCC

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Rating Summary:

4 Buy, 3 Hold, 0 Sell

Rating Trend: Down

Today’s Overall Ratings:

Up: 30 | Down: 44 | New: 39

Shares of ArQule Inc. (Nasdaq: ARQL) declined Friday morning after it announced disappointing top-line results from a Phase 2 signal generation trial of tivantinib for used in combination with irinotecan and cetuximab in patients with refractory or relapsed colorectal cancer (CRC). Despite the setback, Burrill Institutional Research thinks use in treatment of hepatocellular carcinoma could still drive shares higher.

Commenting on the developments, analyst Reni Benjamin said, “ArQule’s main value driver Tivantinib failed two Phase 3 trials for patients with non-small cell lung cancer (NSCLC). However, in a 107 patient randomized study evaluating two doses of single agent Tivantinib in patients with second-line unresectable HCC versus placebo, Tivantinib demonstrated statistically significant results in OS, PFS and time to tumor progression (TTP) in high c-MET expressing patients.”

Benjamin thinks Tivantinib could reach global peak sales of $278 million for HCC.

“Our discount cash flow model suggests that Tivantinib alone could be worth $102 million, or $1.65 per share,” said the analyst.

Burrill has a Market OutPerform/ Speculative Risk rating on ArQule Inc. (Nasdaq: ARQL) with a price target of $5.

For an analyst ratings summary and ratings history on ArQule click here. For more ratings news on ArQule click here.

Shares of ArQule closed at $2.92 yesterday, with a 52 week range of $1.98-$8.32.

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