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ArQule Provides Updates on Clinical Trials in Hepatocellular Carcinoma and Non-Small Cell Lung Cancer with Tivantinib



  ArQule Provides Updates on Clinical Trials in Hepatocellular Carcinoma and
  Non-Small Cell Lung Cancer with Tivantinib

  Data Monitoring Committee approves continuation of Phase 3 METIV-HCC liver
          cancer trial following safety and pharmacokinetic analyses

 Asian partner Kyowa Hakko Kirin provides top-line data on ATTENTION trial in
                   non-squamous non-small cell lung cancer

Business Wire

WOBURN, Mass. -- January 16, 2014

ArQule, Inc. (Nasdaq: ARQL) today provided clinical updates on the ongoing
pivotal Phase 3 METIV-HCC trial in hepatocellular carcinoma (liver cancer)
conducted by the Company and its partner, Daiichi Sankyo Co., Ltd., and on the
completed amended Phase 3 ATTENTION trial in non-squamous non-small cell lung
cancer (NSCLC) conducted in Asian territories by its partner, Kyowa Hakko
Kirin Co., Ltd.

METIV-HCC Trial

The Data Monitoring Committee (DMC) of the METIV-HCC trial has recommended
continuation of the ongoing pivotal Phase 3 METIV-HCC trial of tivantinib as a
single agent in hepatocellular carcinoma with a lower dose of tivantinib, 120
milligrams (mg) tablets administered twice daily (BID). This decision followed
the DMC’s review of data analyses from a predefined number of patients who
received this lower dose.

Recently completed safety analyses among patients treated with 120 mg BID
tivantinib tablets showed that the incidence of neutropenia was reduced with
this lower dose. In addition, pharmacokinetic analyses from this patient
cohort, reviewed by the DMC, demonstrated that the plasma exposure of the 120
mg BID tablets dose was comparable to the exposure achieved with the 240 mg
BID capsules dose employed in the Phase 2 trial, with similar medians and
overlapping ranges.

A dose reduction from 240 mg BID tablets to 120 mg tablets BID was implemented
in September, 2013 following the observation of a higher incidence of
neutropenia in the initial phase of the METIV-HCC trial than was observed in
the Phase 2 trial in the same patient population where a 240 mg BID capsule
dose was administered. Certain enhanced patient monitoring procedures had been
temporarily instituted to confirm the safety profile of the lower dose.

The METIV-HCC trial is a pivotal randomized, double-blind study of tivantinib
as single agent therapy in previously treated patients with MET
diagnostic-high, inoperable HCC. The primary endpoint is overall survival in
the intent-to-treat population, and the secondary endpoint is progression free
survival in the same population. METIV-HCC is being conducted under a Special
Protocol Assessment (SPA).

ATTENTION Trial

Kyowa Hakko Kirin has provided the Company with top-line results of the
amended Phase 3 ATTENTION clinical trial evaluating the combination of
tivantinib (ARQ 197) and erlotinib in patients with advanced or metastatic
non-squamous non-small cell lung cancer (NSCLC) with wild-type EGFR (epidermal
growth factor receptor) in Asia (Japan, Korea and Taiwan).

Enrollment in ATTENTION had been originally planned for 460 patients, and the
trial’s statistical analysis plan was calibrated accordingly and remained
unchanged. Recruitment of new patients was permanently suspended in October,
2012 based on a recommendation by the trial’s Safety Review Committee
following an observed imbalance in interstitial lung disease (ILD) cases as a
drug-related adverse event. Patients who received treatment in ATTENTION as of
October, 2012 were allowed to continue thereafter in the trial after being
re-consented, and including such patients, a total of 307 patients were
included in the final analysis.

In the ITT population, overall survival (OS) favored the treatment arm of
tivantinib plus erlotinib compared to the erlotinib only control arm, but it
was not statistically significant (median OS of 12.9 months vs 11.2 months,
hazard ratio = 0.89, p = 0.4). Progression free survival (PFS) and overall
response rate (ORR) results also showed a numerical trend toward improvement
favoring the treatment arm.

The safety profile observed in ATTENTION was in line with what had been
previously observed in other NSCLC trials with tivantinib, with the exception
of a reported imbalance in ILD, which is a known adverse event in Japanese
patients treated with EGFR inhibitors such as erlotinib. In the Phase 3
MARQUEE trial in non-squamous NSCLC conducted in Western countries, no
imbalance was observed in the incidence of ILD between treatment and control
arms, with one case (0.2%) reported in the treatment arm and four cases (0.8%)
in the control arm.

ATTENTION is a Phase 3 randomized, double-blind trial comparing OS of second
or third line non-squamous NSCLC patients with wild-type EGFR treated with
tivantinib and erlotinib to OS of patients treated with placebo and erlotinib.
Complete data from this study, including biomarker analyses, are expected to
be presented at a future scientific meeting.

About MET and Tivantinib (ARQ 197)

Tivantinib is an orally administered, selective inhibitor of MET, a receptor
tyrosine kinase, which is currently in Phase 2 and 3 clinical trials. In
certain healthy adult cells, MET is present in low to normal levels to support
natural cellular function, but in some cancer cells, MET is inappropriately
and continuously activated. When abnormally activated, c-Met plays multiple
roles in aspects of human cancer, including cancer cell growth, survival,
angiogenesis, invasion and metastasis. The activation of certain cell
signaling pathways, including MET, has also been associated with the
development of resistance to EGFR inhibitors such as cetuximab.

Pre-clinical data have demonstrated that tivantinib inhibits MET activation in
a range of human tumor cell lines and shows anti-tumor activity against
several human tumor xenografts. In clinical trials to date, treatment with
tivantinib has been generally well tolerated and has shown clinical activity
in the tumors studied. Tivantinib has not yet been approved for any indication
in any country.

About ArQule, Inc. and its Partners for the Development of Tivantinib

On December 19, 2008, ArQule and Daiichi Sankyo Co., Ltd. signed a license,
co-development and co-commercialization agreement to co-develop tivantinib in
the U.S., Europe, South America and the rest of the world, excluding Japan,
China (including Hong Kong), South Korea and Taiwan, areas for which Kyowa
Hakko Kirin has exclusive rights for development and commercialization under
an exclusive license agreement signed with ArQule in 2007.

About ArQule

ArQule is a biotechnology company engaged in the research and development of
next-generation, small-molecule cancer therapeutics. The Company’s targeted,
broad-spectrum products and research programs are focused on key biological
processes that are central to human cancers. ArQule’s lead product, in Phase 2
and Phase 3 clinical development, is tivantinib (ARQ 197), an oral, selective
inhibitor of the c-MET receptor tyrosine kinase. The Company’s pipeline
includes: ARQ 092, designed to inhibit the AKT serine/threonine kinase and ARQ
087, designed to inhibit fibroblast growth factor receptor (FGFR). ArQule’s
current discovery efforts, which are based on the ArQule Kinase Inhibitor
Platform (AKIP™), are focused on the identification of novel kinase inhibitors
that are potent and selective against their targets.

This press release contains forward-looking statements regarding the METIV-HCC
clinical trial with tivantinib in hepatocellular carcinoma (HCC) conducted
with Daiichi Sankyo and the ATTENTION clinical trial with tivantinib in
combination with erlotinib in non-squamous non-small cell lung cancer
conducted by Kyowa Hakko Kirin as well as the Company’s agreements with both
Daiichi Sankyo and Kyowa Hakko Kirin. These statements are based on the
Company’s current beliefs and expectations, and are subject to risks and
uncertainties that could cause actual results to differ materially. There can
be no assurance that tivantinib alone or in a combination therapy will
demonstrate promising therapeutic effects in pivotal or other trials; in
addition, tivantinib may ultimately not demonstrate an appropriate safety
profile in later stage or larger scale clinical trials, such as METIV-HCC,
including among patients with underlying cirrhosis and compromised liver
function, as a result of known or as yet unanticipated side effects. The
results achieved in later stage trials may not be sufficient to meet
applicable regulatory standards or to justify further development. Problems or
delays may arise during clinical trials or in the course of developing,
testing or manufacturing tivantinib that could lead the Company, Daiichi
Sankyo or Kyowa Hakko Kirin to discontinue development. Even if later stage
clinical trials are successful, unexpected concerns may arise from analyses of
data or from additional data. Obstacles may arise or issues may be identified
in connection with review of clinical data with regulatory authorities, and
regulatory authorities may disagree with the Company’s view of the data or
require additional data or information or additional studies. In addition, the
planned timing of completion of clinical trials like METIV-HCC is subject to
the ability of the Company or its partners to enroll patients, enter into
agreements with clinical trial sites and investigators, and overcome ongoing
or emergent regulatory issues and address other technical hurdles and issues
related to the conduct of the trials for which each of them is responsible
that may not be resolved promptly, or at all. Drug development involves a high
degree of risk. Only a small number of research and development programs
result in the commercialization of a product. Furthermore, ArQule may not have
the financial or human resources to successfully pursue drug discovery in the
future. Moreover, Daiichi Sankyo and Kyowa Hakko Kirin have certain rights to
unilaterally terminate the tivantinib license agreement with the Company. If
it were to do so, the Company might not be able to complete development and
commercialization of tivantinib on its own. For more detailed information on
the risks and uncertainties associated with the Company’s drug development and
other activities, see the Company’s periodic reports filed with the Securities
and Exchange Commission. The Company does not undertake any obligation to
publicly update any forward-looking statements.

Contact:

ArQule, Inc.
William B. Boni, 781-994-0300
VP, Investor Relations/Corp. Communications
www.ArQule.com
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