Ariad (ARIA) Gets Crushed After Its Only Approved Treatment Is Put On Hold

Shares of Ariad Pharmaceuticals (ARIA) crashed more than 70% last week, after the company reported that its top drug candidate, the leukemia drug Iclusig, had been put on a temporary hold by the FDA. The company announced that a number of patients given the drug experienced blood clots and heart damage. Daily Chart

Ariad stated that after two years of follow-up tests on patients taking the drug, it discovered that 11.8% suffered blood clots, 6.2% experienced cardiovascular problems, 4% suffered brain vascular issues, and 3.6% reported peripheral vascular trouble.
In addition, several patients reported more than one issue. Meanwhile, 2.9% experienced vein blockages, and 20% experienced artery and vein problems of varying degrees. Despite these troubles, Ariad claimed that it would eventually continue its mid-stage clinical trial, although future participants would be screened more closely to exclude those with prior cardiovascular problems. Regardless of Iclusig? future, its timeline will now be severely delayed, with the full data from the eventual late-stage trial now expected in the third or fourth quarters of fiscal 2014, according to RBC Capital Markets analyst Michael Yee. Iclusig was approved last December for two rare types of blood cancer, and is currently being tested in seven mid-stage studies for lung cancer, thyroid cancer, and another type of blood cancer. However, its current label already warns patients regarding the risk of blood clots and liver toxicity. At the end of last quarter, over 610 patients in the U.S. were given Iclusig. Ariad previously had a goal to treat 1,000 to 1,100 patients by the end of the year, but that hitting that target is now extremely unlikely due to recent developments. Last quarter, Ariad reported a loss of $0.37 per share, down from a loss of $0.31 per share in the prior year quarter. Thanks to the approval of Iclusig, revenue soared to $14 million, up from $0.32 million a year earlier. However, the launch of Iclusig caused a 244% year-over-year surge in selling, general, and administrative expenses to $42.1 million. A sudden lack of revenue growth and high expenses could mean investors should brace for a wider loss this quarter. Other News About ARIA Ariad Shares Plunge After Enrollment in Drug Trial Halted Ariad hits a brick wall and shares crash. Ariad Plunges After FDA Places Trials of Iclusig on Hold Is there any hope left from Ariad Pharmaceuticals? Other Stocks in the News Google Cozies Up to Apple Developers As Apple tries to hire BlackBerry workers, Google tries to steal some developers from Apple. Cell Therapeutics Must Deliver on Promise for Myelofibrosis Drug Partner Is this Cell Therapeuticslast chance to shine? Copyright 2013 by InvestorGuide.com, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA InvestorGuide.com, Inc.) or its employees responsible.

Published on Oct 18, 2013
By Leo Sun
Leo Sun
Leo Sun is a freelance finance writer and position trader. He focuses on a combination of value and momentum investing, with a strong interest in the trading philosophies of Warren Buffett and Peter Lynch. Leo also has experience writing articles to help small business owners acquire loans and manage their finances. He regularly contributes to the Stock of the Day analysis.

Copyrighted 2016. Content published with author's permission.

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