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Biotech / Medical : ArQule -- Ignore unavailable to you. Want to Upgrade?

To: StockDoc who wrote (228)	6/16/1998 6:04:00 PM
From: Dr. John M. de Castro	Read Replies (1) \| Respond to of 399

ARQL's technology should markedly reduce the time to market by reducing the time for lead identification and optimization. But, it won't speed up clinical trials that take years. So, you're right that it will take a while before revenues start flowing from the royalties on these molecules. However, the market reacts to future as well as present earnings. As ARQL's molecules enter clinical trials, the potential future profits should become clearer and, IMHO, the market will react very positively. There has never been a molecule produced by combinatorial chemistry that has entered clinical trials. There are a number of people who are still skeptical of this technology as a viable approach to drug discovery (Take the "ahaha" posts as an example). So, the progress into the clinic is very important. The Wyeth Ayerst progress is particularly important because this may be the source of this breakthrough into clinicals. When this happens, it will evidence the power of ARQL's technology. IMO this will make the future earnings potential of this company more apparent. Your idea of selling their portion of the rights to the molecules to the Pharmas is an interesting one. I had not thought of this. However, this would be a change in the business plan as I understand it. One of the aspects that I like so much about ARQL's business plan is its farsightedness. Short-term gains at the expense of the long-term prospects for the company have been rigorously avoided. Management has stayed the course and IMO is building real value. That value has not been completely understood by the market yet. However, it is only a matter of time before it is. I'm invested in ARQL for the long haul. So, building the underlying value of the company for the future is what I want to see happen. As I see it, that is exactly what is happening. John de C