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H&Q analyst Rachel Leheny is high on this undiscovered biotechnology company. She says among other things "ArQule's superior technology and business model should enable it to become the dominant provider of combinatorial chemistry libraries." Surely she is biased since they were one of the 3 underwriters--but H&Q also exercised an option to buy like 300,000 shares (roughly) at $12 per pop...at least they put their money where their (her rather) mouth is. The key in her view is that their combinatorial chemistry will enable "a meaningful reduction in clinical failure owing to improvements in the drug discover process." They have a lot of collaborations and partnerships with big drug companies too. "On very conservative estimates, the current discounted value of the revenues three-and-a-half years from now is$16 per share. " Based on royalties, etc her target is $31 in 12 months. No guarantees obviously. Does anyone else follow this unknown company whose stock symbol surely can win you a game of Scrabble:)? |
