ArQule's (NASDAQ:ARQL) ARQ 197 Phase 3 Trials, Tarceva, Drawing Investor Interest

ArQule (NASDAQ:ARQL) is increasingly becoming a stock of interest for 2011, based on their phase 3 trial of ARQ 197 and Tarceva.

Needham said, "We believe that ARQL represents a stock of added interest in 2011, as we look forward to the initiation of the pivotal Phase 3 trial of ARQ 197 (with partner Daiichi Sankyo) in combination with Tarceva in 2nd/3rd line NSCLC. We are positively inclined towards the pivotal trial, which is an expanded version of the positive Phase 2 trial enhanced by limiting enrollment to the nonsquamous subtypes and by stratifying for any imbalance of EGFR and KRAS mutation status. We believe there is an unmet medical need in the 2nd/3rd line NSCLC, as Alimta and Tarceva have moved up to the front-line and maintenance settings, and a large market potential exists in non-squamous NSCLC (~70% of all NSCLC)."

Needham & Company maintains a "Buy" rating on ArQule, which closed Wednesday at $6.03, up $0.18, or 3.08 percent. Needham has a price target of $12 on them.