UPDATE: RBC Capital Upgrades ArQule (ARQL) to Outperform

RBC Capital upgraded ArQule (NASDAQ: ARQL) from Sector Perform to Outperform with a price target of $5.00. Analyst Adnan Butt noted multiple clinical read-outs in 2016.

"Valuation is attractive if even 1-2 of 5 programs succeed and with data timelines closer and risk reward attractive we are upgrading shares to Outperform and raising the price target to $5. Clinical trials reading out in 2016 include Phase 3 tivantinib 2nd-line liver cancer study (investor focus), Phase 1 ARQ-092 Proteus syndrome trial (investor focus), Phase 2 ARQ-087 cholangiocarcinoma study among others," said Butt.

The analyst added, "Our long-term thesis on ARQL is based on expected positive data for its main drug tivantinib in 2016 for 2nd line HCC, and pipeline assets, including ARQ 092 and ARQ 087 in 2016/2017 and beyond. We believe there are multiple shots at success for tivantinib with HCC, ARQ 092 in Proteus syndrome and ARQ 087 in cholangiocarcinoma, and even other programs. Timelines to Phase 3 data are closer and the risk is uncertainty regarding the tolerability of tivantinib in patients with liver cancer, which is partly offset by positive Phase 2 data."

For an analyst ratings summary and ratings history on ArQule click here. For more ratings news on ArQule click here.

Shares of ArQule closed at $2.05 yesterday.

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