ArQule Announces $15.7 Million Private Placement

10/16/17

BURLINGTON, Mass.--(BUSINESS WIRE)--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 ?-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.

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