ArQule Announces Extension of Collaboration with Sankyo Company, Ltd.

Apr 03, 2001, 01:00 ET from ArQule, Inc.

    WOBURN, Mass., April 3 /PRNewswire/ -- ArQule, Inc. (Nasdaq:   ARQL)
 announced today that the Company has extended their 1997 agreement with Sankyo
 Company, Ltd. through 2004 and will provide Sankyo with access to ArQule's
 Compass Array (TM) libraries.  In addition, Sankyo will continue to use
 ArQule's Directed Array (SM) program for synthesis of analog compounds derived
 from identification of active hits from ArQule's Compass and Mapping Array (R)
 libraries or active hits from Sankyo's internally developed compounds.  ArQule
 may receive delivery fees, research payments, milestone payments, and
 royalties from sales of any products resulting from the collaboration.
     ArQule's Compass Array library is a diverse set of compounds selected from
 and representing each chemotype array within ArQule's Mapping Array
 repository.  The Compass Array program is designed to reduce drug discovery
 costs by rapidly identifying those arrays contained within ArQule's Mapping
 Array repository that warrant further evaluation without the need to screen
 the entire compound collection.  This agreement with Sankyo is ArQule's fifth
 pharmaceutical collaboration to include the Compass Array program; other
 collaborators are Johnson & Johnson, Searle, GlaxoSmithKline, and Solvay
 Pharmaceuticals.
     "I would like to recognize the employees of ArQule and Sankyo, who
 together have built the trust and respect which has resulted in the renewal of
 this collaboration," said Stephen Hill, CEO and President of ArQule.
 "Following the recent announcement of our renewed collaboration with Solvay,
 our co-development program with Nanodesign and our merger with Camitro, I am
 delighted with the momentum we have created so soon in 2001."
     David Hastings, ArQule's Chief Financial Officer, commented, "ArQule
 continues to demonstrate its ability to deliver for our collaborators as
 evidenced by this renewal.  We reiterate our revenue guidance given at our
 February 1, 2001 conference call of 20% revenue growth in 2001 from 2000
 levels."
      ArQule collaborates with leading pharmaceutical and biotechnology
 companies to synthesize and optimize small molecules that have the potential
 to enter clinical development and become medicines.  ArQule's Parallel Track
 (TM) Drug Discovery program integrates key technologies for high-throughput,
 automated synthesis of small molecules with technologies that enable more
 informed, intelligent decisions about what molecules to synthesize. Parallel
 use of these "what to make" and "how to make" technologies results in rapid,
 iterative cycles of lead generation, qualification, and optimization of
 clinical drug candidates.  In addition, ArQule also offers access to their
 high-throughput, automated synthesis and lead optimization platforms through
 technology licensing agreements.  The Company is headquartered in Woburn,
 Massachusetts.  For additional information, please visit www.arqule.com.
 
     Sankyo Company, Ltd. is the second largest pharmaceutical company in
 Japan. Headquartered in Tokyo and established in 1899, Sankyo employs nearly
 7,000 people. As a research-based developer, manufacturer and marketer, Sankyo
 has introduced several breakthrough drugs to the international market,
 including its own ethical drug, Mevalotin (pravastatin), an in-house developed
 hyperlipemia agent, Banan (cefpodoxime proxetil), an oral cephalosporin
 antibiotic, and the largest anti-inflammatory drug in Japan, Loxonin
 (loxoprofen sodium).
 
     This press release contains forward-looking statements as defined in the
 Private Securities Litigation Reform Act of 1995, including statements about
 the receipt of possible payments under the collaboration and the revenue
 growth for the year 2001.  The actual results may differ materially from those
 projected in the forward-looking statement due to numerous risks and
 uncertainties that exist in ArQule's operations, development efforts and the
 business environment, including without limitation: the ability to deliver our
 products to our corporate collaborators and to satisfy milestones so that we
 could earn future payments under our collaboration agreements; the progress of
 our product research and development activities and projected expenditures;
 the ability to enter into future collaborations with pharmaceutical and
 biotechnology companies; and the risks and uncertainties described in ArQule's
 Registration Statement on Form S-3 filed with the Securities and Exchange
 Commission on October 20, 2000, as amended.  The forward-looking statements
 contained herein represent the judgment of ArQule as of the date of this
 release.  ArQule disclaims any intent or obligation to update any forward-
 looking statement except to the extent required by law.
 
      ArQule Contacts:
      Stephen Hill, CEO
      David Hastings, CFO
      John Sorvillo, Ph.D.,
      VP, Business Development
      781-994-0300
      www.arqule.com
 
      Media Contacts:
      Sharon Karlsberg
      Vivienne Blake
      Feinstein Kean Healthcare
      617-577-8110
      www.fkhealth.com
 
 

SOURCE ArQule, Inc.
    WOBURN, Mass., April 3 /PRNewswire/ -- ArQule, Inc. (Nasdaq:   ARQL)
 announced today that the Company has extended their 1997 agreement with Sankyo
 Company, Ltd. through 2004 and will provide Sankyo with access to ArQule's
 Compass Array (TM) libraries.  In addition, Sankyo will continue to use
 ArQule's Directed Array (SM) program for synthesis of analog compounds derived
 from identification of active hits from ArQule's Compass and Mapping Array (R)
 libraries or active hits from Sankyo's internally developed compounds.  ArQule
 may receive delivery fees, research payments, milestone payments, and
 royalties from sales of any products resulting from the collaboration.
     ArQule's Compass Array library is a diverse set of compounds selected from
 and representing each chemotype array within ArQule's Mapping Array
 repository.  The Compass Array program is designed to reduce drug discovery
 costs by rapidly identifying those arrays contained within ArQule's Mapping
 Array repository that warrant further evaluation without the need to screen
 the entire compound collection.  This agreement with Sankyo is ArQule's fifth
 pharmaceutical collaboration to include the Compass Array program; other
 collaborators are Johnson & Johnson, Searle, GlaxoSmithKline, and Solvay
 Pharmaceuticals.
     "I would like to recognize the employees of ArQule and Sankyo, who
 together have built the trust and respect which has resulted in the renewal of
 this collaboration," said Stephen Hill, CEO and President of ArQule.
 "Following the recent announcement of our renewed collaboration with Solvay,
 our co-development program with Nanodesign and our merger with Camitro, I am
 delighted with the momentum we have created so soon in 2001."
     David Hastings, ArQule's Chief Financial Officer, commented, "ArQule
 continues to demonstrate its ability to deliver for our collaborators as
 evidenced by this renewal.  We reiterate our revenue guidance given at our
 February 1, 2001 conference call of 20% revenue growth in 2001 from 2000
 levels."
      ArQule collaborates with leading pharmaceutical and biotechnology
 companies to synthesize and optimize small molecules that have the potential
 to enter clinical development and become medicines.  ArQule's Parallel Track
 (TM) Drug Discovery program integrates key technologies for high-throughput,
 automated synthesis of small molecules with technologies that enable more
 informed, intelligent decisions about what molecules to synthesize. Parallel
 use of these "what to make" and "how to make" technologies results in rapid,
 iterative cycles of lead generation, qualification, and optimization of
 clinical drug candidates.  In addition, ArQule also offers access to their
 high-throughput, automated synthesis and lead optimization platforms through
 technology licensing agreements.  The Company is headquartered in Woburn,
 Massachusetts.  For additional information, please visit www.arqule.com.
 
     Sankyo Company, Ltd. is the second largest pharmaceutical company in
 Japan. Headquartered in Tokyo and established in 1899, Sankyo employs nearly
 7,000 people. As a research-based developer, manufacturer and marketer, Sankyo
 has introduced several breakthrough drugs to the international market,
 including its own ethical drug, Mevalotin (pravastatin), an in-house developed
 hyperlipemia agent, Banan (cefpodoxime proxetil), an oral cephalosporin
 antibiotic, and the largest anti-inflammatory drug in Japan, Loxonin
 (loxoprofen sodium).
 
     This press release contains forward-looking statements as defined in the
 Private Securities Litigation Reform Act of 1995, including statements about
 the receipt of possible payments under the collaboration and the revenue
 growth for the year 2001.  The actual results may differ materially from those
 projected in the forward-looking statement due to numerous risks and
 uncertainties that exist in ArQule's operations, development efforts and the
 business environment, including without limitation: the ability to deliver our
 products to our corporate collaborators and to satisfy milestones so that we
 could earn future payments under our collaboration agreements; the progress of
 our product research and development activities and projected expenditures;
 the ability to enter into future collaborations with pharmaceutical and
 biotechnology companies; and the risks and uncertainties described in ArQule's
 Registration Statement on Form S-3 filed with the Securities and Exchange
 Commission on October 20, 2000, as amended.  The forward-looking statements
 contained herein represent the judgment of ArQule as of the date of this
 release.  ArQule disclaims any intent or obligation to update any forward-
 looking statement except to the extent required by law.
 
      ArQule Contacts:
      Stephen Hill, CEO
      David Hastings, CFO
      John Sorvillo, Ph.D.,
      VP, Business Development
      781-994-0300
      www.arqule.com
 
      Media Contacts:
      Sharon Karlsberg
      Vivienne Blake
      Feinstein Kean Healthcare
      617-577-8110
      www.fkhealth.com
 
 SOURCE  ArQule, Inc.