Biotech Values

[bladerunner1717]

re: ARQL

ARQL has been getting hammered recently. I think retail investors have panicked over PFE's decision to end the chemistry contract with ARQL. (PFE paid ARQL $20 million to server the contract.) ARQL now plans to sell the chemistry business altogether. Evan Sturza, a hedge fund manager, says the business will sell for $50 million. ARQL already has a $130 million in cash and, if they enter ARQ501 in a combo trial with gemcitabine in a major cancer indication in the first or second quarter of 2006 as promised, this will trigger milestones from their partner Roche. All this means that the Market will have placed a technology value (if you add in some real estate holdings) on the company at ZERO. And they have a very decent pipeline.

Any comments?



Bladerunner