13G Filing: Biotechnology Value Fund LP and Arqule Inc (ARQL)

(b)

Percent of class:

The following percentages are based
on a denominator which is the sum of: (i) 71,171,551 shares of Common Stock outstanding as of July 20, 2017, as disclosed in the
Issuer’s Quarterly Report filed on Form 10-Q with the Securities and Exchange Commission on August 4, 2017, (ii) the 15,918,751
Shares of Common Stock issued by the Issuer pursuant to the Private Placement and (ii) certain of the 2,439,932 shares of Common
Stock underlying certain Warrants, as applicable.

As of October 16, 2017 (i) BVF beneficially
owned approximately 10.0% of the outstanding shares of Common Stock, including shares of Common Stock issuable upon the exercise
of certain Warrants, (ii) BVF2 beneficially owned approximately 5.8% of the outstanding shares of Common Stock, including shares
of Common Stock issuable upon the exercise of certain Warrants, (iii) Trading Fund OS beneficially owned approximately 1.6% of
the outstanding shares of Common Stock, (iv) Partners OS may be deemed to beneficially own approximately 1.6% of the outstanding
shares of Common Stock, and (v) each of Partners, BVF Inc. and Mr. Lampert may be deemed to beneficially own approximately 19.9%
of the outstanding shares of Common Stock (approximately 2.5% of which is held in the Partners Managed Accounts).

(c)

Number of shares as to which such person has:

(i)

Sole power to vote or to direct the vote

See Cover Pages Items 5-9.

(ii)

Shared power to vote or to direct the vote

See Cover Pages Items 5-9.

(iii)

Sole power to dispose or to direct the disposition of

See Cover Pages Items 5-9.

(iv)

Shared power to dispose or to direct the disposition of

See Cover Pages Items 5-9.

Item 5.

Ownership of Five Percent or Less of a Class.

Not Applicable.

Item 6.

Ownership of More than Five Percent on Behalf of Another Person.

Partners, BVF Inc. and Mr. Lampert
share voting and dispositive power over the shares of Common Stock beneficially owned by BVF, BVF2, Trading Fund OS, and the Partners
Managed Accounts.

Item 7.

Identification and Classification of the Subsidiary That Acquired the Security Being Reported on by the Parent Holding Company or Control Person.

Not Applicable.

Item 8.

Identification and Classification of Members of the Group.

See Exhibit 99.1 to Amendment No. 3
to the Schedule 13G filed with the Securities and Exchange Commission on February 16, 2016.

Item 9.

Notice of Dissolution of Group.

Not Applicable.