Monday, November 10, 2008

ArQule development deal with Daiichi Sankyo delivers $75M

By Mass High Tech Staff

Local biotechnology company ArQule Inc. has entered a multi-million dollar agreement with a Japan-based partner to assist with its next-generation cancer technology research and development.

Woburn-based ArQule reported it was joining with Tokyo-based Daiichi Sankyo Co. Ltd. to create new anti-cancer compounds. As part of the agreement, Daiichi Sankyo will provide ArQule with $75 million in cash up front, and both companies will co-develop ARQ 197, ArQule’s orally-administered small molecule inhibitor, currently in clinical-stage development.  Additionally, both companies will promote ArQule’s kinase inhibitor discovery platform (AKIP). 

This partnership will allow ArQule to bring the development effort for the proprietary ARQ 197 to the “next level,” according to Paolo Pucci, the company’s CEO. Additionally, Daiichi Sankyo also will be the firm’s first partner for AKIP. In the long run, it will affect not only product development, but promote scientific and financial objectives, stated Pucci.

Among its specifics, the letter of intent between the companies calls for exclusive license, co-development, and co-commercialization efforts. This includes the launch of ARQ 197 in human cancer indications in the United States, Europe and South America, but not Japan, China, South Korea and Taiwan, where Kyowa Hakko Kirin Co. Ltd. owns the exclusive development and commercialization rights.

Also on Monday, ArQule announced its quarterly earnings for the third quarter of 2008.  ArQule reported a net loss of $11.3 million, up from a loss of $11.12 million for the same quarter in 2007.