) reported a loss of 11 cents per share in the second quarter of
2013, wider than the Zacks Consensus Estimate of a loss of 10
cents per share. The company had reported a loss of a penny in
the year-ago quarter.
Revenues plummeted 62.5% to $4.4 million in the second quarter
of 2013 and were marginally short of the Zacks Consensus Estimate
of $5 million.
Quarter in Detail
The decline in ArQule's quarterly revenues was primarily due
to the reduction of $4.9 million of revenues from the company's
research collaboration with Daiichi Sankyo that ended in Nov 2012
and $2.3 million from the tivantinib program with the latter.
Research and development expenses were $8.1 million, down
12.8% from the year-ago quarter mainly due to lower outsourced
clinical and product development costs related to tivantinib and
other pipeline programs along with lower labor related costs.
General and administrative expenses declined 9.0% to $3.2
2013 Outlook Reiterated
ArQule continues to expect revenues between $12 million and
$15 million in 2013. The Zacks Consensus Estimate currently
stands at $18 million. ArQule anticipates net loss per share
between 45 cents and 50 cents in 2013. The Zacks Consensus
Estimate for 2013 hints at a loss of 41 cents.
Concurrent with second-quarter results, ArQule announced a
workforce reduction of approximately 25 positions in order to
accumulate cash and sustain its business into 2016, independently
fund its clinical trials and effectively deploy core discovery
ArQule will continue to focus on developing its oncology
candidate, tivantinib (ARQ 197), which has now entered into phase
III with the initiation of the METIV-HCC (MET-high patients with
tivantinib in second-line hepatocellular carcinoma).
Initiated in early 2013, the trial is evaluating previously
treated patients with MET-high inoperable HCC (liver cancer) who
will receive tivantinib as a single agent or placebo. The company
enrolled its first patient for this trial in the first quarter of
2013 and expects to complete full enrolment by mid 2015.
ArQule currently carries a Zacks Rank #3 (Hold). Right now,
Auxilium Pharmaceuticals Inc.
Avanir Pharmaceuticals, Inc.
) look well placed, each with a Zacks Rank #2 (Buy).
ARQULE INC (ARQL): Free Stock Analysis Report
AUXILIUM PHARMA (AUXL): Free Stock Analysis
AVANIR PHARM (AVNR): Free Stock Analysis
CADENCE PHARMA (CADX): Free Stock Analysis
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