Oppenheimer analyst Hartaj Singh is initiating coverage by tagging an Outperform rating and a US$7 price target on the cancer specialist ArQule (NASDAQ:ARQL), which has seen its shares rise close to fivefold since the year’s start.
Singh is bullish on ArQule’s competence in kinase inhibition, which plays an increasingly prominent role in the treatment of cancer. He argues that the “one-two punch of the company’s rare disease/oncology franchise in ARQ 092/751 (AKT inhibitors) and the blue-skies scenario of the reversible BTK-inhibitor ARQ 531 will create substantial value for shareholders over the near to mid-term.”
Singh expects the company's two cancer-fighting AKT inhibitors – ARQ092/751 and ARQ 531 to each account for $3 per share of ArQule’s valuation and says both therapies have about a 35% chance of making it to market.
ARQ092/751 is set to bring in sales of US$720m in 2027 while ARQ 531 looks ready to be the driver behind as much as US$730m worth of sales in 2026.
ArQule is a biopharmaceutical company engaged in the research and development of targeted therapeutics to treat cancers and other rare diseases.
ArQule’s shares traded 2% lower at US$5.18 in late afternoon trade.