BioCentury
ARTICLE | Strategy

Monetizing its transformation

April 5, 2004 7:00 AM UTC

Last week's deal with Roche for E2F discovery programs in cancer is a key step in ArQule Inc.'s continued transformation from one-time combichem play to oncology product company. The deal provides ARQL with both funding and its partner's expertise in oncology development and marketing, which ARQL hopes will help pave the way to market.

ARQL gained the E2F program through its acquisition of Cyclis Pharmaceuticals Inc. in September 2003 for about $25 million in stock and cash, plus the assumption of $5-$6 million in debt. Last week, Roche (SWX:ROCZ, Basel, Switzerland) paid ARQL $15 million in cash up front for an option to the program, including Phase I compound ARQ 501. Thus, ARQL has already regained half its initial investment...