UPDATE 1- ArQule Q3 beats estimates, sees narrower '09 loss

* Q3 loss/shr $0.18 vs est of $0.26

* Q3 revenue $6.44 million vs est $5.85 mln

* Sees '09 rev at or above the high end of outlook

* Sees net loss below the low end of outlook

Nov 5 (Reuters) - Biotechnology company ArQule Inc (ARQL.O) posted a narrower quarterly loss as its revenue more than doubled on additional sales generated from its collaboration with Japan's Daiichi Sankyo Co Ltd (4568.T).

The company also said that it now sees full-year revenue at or above the higher end of its previous outlook of $21 million to $24 million, and 2009 net loss below the low end of its prior view of 98 cents to $1.05 a share.

ArQule is co-developing potential cancer treatments with the Japanese drugmaker.

For the third quarter, the company posted a net loss of $8.1 million, or 18 cents a share, compared with a net loss of $11.3 million, or 26 cents a share, in the year ago quarter.

Revenue for the quarter was up about 141 percent at $6.44 million.

Analysts on average were expecting the company to post a loss of 26 cents a share on revenue of $5.85 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $3.28 Wednesday on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore ; Editing by Jarshad Kakkrakandy)