Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) Hopes High Again WithIclusig’s Return...
http://wallstreetpr.com/...hopes-high-again-withiclusigs-return-13722posted on Jan 21 2014 - 8:30am by Karthikeyan Narayanan
Boston, MA 01/21/2013 (wallstreetpr) – Finally, after all the regulatory hurdles, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) puts its Iclusig back into markets in the United States. Slowly, but steadily, the bleeding bio-tech firm is regaining its lost ground as it came nearly 3% up to $6.90.
Safety Concerns Disturbed The Strong Story
The year 2013 was harsh on Ariad investors as the company’s stocks plummeted following a red flag raised by the FDA for its cancer drug Iclusig. Formerly, Iclusig had been approved by the FDA in December 2012 to treat patients with medical conditions of chronic myeloid leukemia. After the approval, the stocks of the company scaled new heights of as close as 850%, in the last five years, however, reports of side-effect, including blood clot and increased probability of heart damage,led the FDA to ask Ariad to stop marketing of Iclusig.
The FDA decision also resulted in safety reviews of Iclusig conducted in European markets as well. But, the EMA’s decision to keep Iclusig in markets with added warning labels came as a rescue to Ariad, which was expecting a sequential blow. The company also stayed afloat through enormous workforce and cost reductions, to balance the sudden loss in revenues.
Nothing More Than Iclusig
Except Iclusig’s ban, the company’s other weaknesses also played a role in its crash. The factors like absence of pipeline of competitive drugs, a negative operating cash flow of $21 million and lower revenue numbers in first three quarters of the financial year 2013, all led to its downfall. Ariad had reported a meager $37 million revenues in the year 2013.
But, as the year 2014 unfolds with brighter prospects for Ariad, the chances are high for the company to grow tremendously ahead. After the October fall, the stock prices have approximately tripled, indicating more growth, but the rest depends on how successful Iclusig gets in its second term.
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