SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 10, 2011

ARQULE, INC.

(Exact Name of Issuer as Specified in Charter)

19 Presidential Way

Woburn, MA

(Address of principal executive offices)

01801

(Zip code)

(781) 994-0300

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 8 — Other Events

Item 8.01 Other Events.

On February 10, 2011, ArQule, Inc. (the “Registrant”) received a $25 million payment from Daiichi Sankyo Co., Ltd. (“Daiichi Sankyo”) in accordance with the terms of their license, co-development and co-commercialization agreement regarding the Registrant’s c-MET inhibitor, ARQ 197.

As previously disclosed on January 12, 2011, the first patient was enrolled in a Phase 3 clinical trial of ARQ 197 in patients with non-small cell lung cancer being conducted by Daiichi Sankyo and the Registrant under the agreement.  The payment to the Registrant resulted from achievement of this clinical milestone.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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