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

To: tommysdad who wrote (326)	4/22/1999 8:59:00 AM
From: Dr. John M. de Castro	Read Replies (2) \| Respond to of 399

Interesting quote from the Q1 results news release. 1) "focus on those with greatest potential" - This suggests that the new CEO is going to cherry pick from the shopping list of biotech collaborations and stop the shotgun approach. 2) "establish new kinds of partnerships" - This suggests that ARQL is going to do business differently. I've heard from industry sources that big Pharmas absolutely hate the way ARQL has been structuring their deals and not allowing Pharmas knowledge of the exact compounds that they are supplying. A shift away from this policy could make collaborations with ARQL much more attractive to Pharmas. 3) "planned collaborations have yet to be initiated. Quarterly revenues therefore should be expected to reflect unevenness due to the timing in the initiation and completion of contracted programs." - This suggests that the deals have already been agreed to. I may be reading too much into this. But, my reading suggests that the contracts have already been cut. I refer particularly to the phrases "planned collaborations" and "contracted programs". These subtle wordings are either indicative of very positive developments or an overinterpretation by a basically optimistic investor. Thoughts? John de C > "Dr. Hill continued, ''In coming months, we plan to continue investing in our technology to expand and enhance our libraries of compounds; refine our current biotech collaborations to focus on those with greatest potential; establish new kinds of partnerships to strengthen the financial foundation of the Company; and expand our management team to include more pharmaceutical industry experience.'' Management noted that first quarter revenues reflected the completion of certain programs, while other planned collaborations have yet to be initiated. Quarterly revenues therefore should be expected to reflect unevenness due to the timing in the initiation and completion of contracted programs. ">