ArQule Could Gain Ahead of American Society of Clinical Oncology Meeting

| About: ArQule, Inc. (ARQL)

In an earlier post, I commented on the preliminary results of studies given to doctors who are members of the American Society of Clinical Oncology [ASCO] ahead of their major meeting in June. One company not mentioned was ArQule, Inc. (NASDAQ:ARQL), a small biotech firm investigating ARQ 197, a promising small molecule that has been shown in pre-clinical testing to inhibit c-Met, thus inhibiting the metastatic growth of cancer.
arqllogo-
So far, the company has shown ARQ 197 to inhibit the growth of human lung cancer cells.

In the upcoming June 1 meeting of ASCO members, ArQule is expected to announce clinical results of the ARQ 197 study in humans. Looking at the company's stock price chart, it seems that investors are betting on positive results.

arqlchart-766068

The stock closed on Friday at $9.02 a share, up almost 5% on twice the 3-month daily average. I personally think that with the hype leading up to the ASCO meeting, and that insiders were buying as late as March, a return to the 52-week high of $10.59 reached on May 3rd is not out of the question. That would equal a decent gain of 17% from Friday's close.

Investors looking to gain on the hype leading up to ASCO might do well with taking a small position in ArQule on Monday, holding through the next two weeks, and selling a day or two ahead of the company's presentation at ASCO.

There's no need to hold through the actual release of results as the hype leading up to it could very well have infused most of the upside gains into the stock price. ArQule has made it on the BioWatch Alert list, and will be tracked by BHI for the next two weeks.

RELATED READING:
- Is Early Release of Study Data to Doctors Unfair?