Shortly after recommending that subscribers to The Cheap Investor buy shares of ArQule (ARQL) at $1.11 in February 2016, shares would rocket to a high of $2.47 for a gain of 123%.   While it has since pulled back from such lofty highs, we still see no reason to exit the trade… and for good reason.

ArQule (ARQL)

The company’s pipeline could produce even better news for long-term investors.  Its lead product – tivantinib (ARQ-197) is being developed for second line treatment of hepatocellular carcinoma (HCC), which is the most common type of liver cancer that accounts for more than 75% of all liver cancers.  This is currently in Phase III studies.

Other treatments being developed by the company are progressing nicely, as well.  In fact, according to its Q2 2016 earnings release:

  • RQ 087 has demonstrated strong anti-cancer activity in ongoing Phase I and II trials in intrahepatic cholangiocarcinoma (iCCA) -- a rare form of liver cancer. 
  • ARQ 531 is a Bruton’s tyrosine kinase (BTK) inhibitor demonstrated that it is a potent and reversible inhibitor of both wild type and ibrutinib resistant C481S-mutant BTK.
  • ARQ 092 is a lead AKT inhibitor that’s in Phase I trials for Proteus syndrome – a rare congenital disorder that causes skin overgrowth and atypical bone development, which can be accompanied by tumors.

ARQL is definitely a stock to keep a close watch on.

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