ArQule to lose $50 million a year from end of Pfizer agreement

New York, Dec. 7 - ArQule, Inc. said the collaboration agreement ended by Pfizer Inc. generated $50 million a year in cash payments.

However the company will receive $19.8 million for the termination of the contract.

ArQule announced Tuesday that Pfizer had decided to stop the collaboration agreement dating from December 2001. The effective date is May 22, 2006.

Under the agreement, ArQule has produced an average of 160,000 compounds a year for Pfizer, according to an 8-K filing with the Securities and Exchange Commission.

ArQule said Pfizer terminated the agreement without cause and believes the decision was taken because of Pfizer's changing requirements.

ArQule itself has already announced plans to exit its chemical technologies business and has hired Young and Partners to explore a potential sale.

Instead, the Woburn, Mass., company will concentrate on its oncology portfolio.

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