Boston, MA 02/05/2014 (wallstreetpr) – Biopharmaceutical companies like Ariad Pharmaceuticals Inc (NASDAQ:ARIA) suffer from a malaise, a small bit of good news sends the stock soaring and it becomes the darling of the Wall Street. But a small piece of bad news sends the stocks down in the dumps.
Ariad And Its Fight Against Cancer:
Ariad Pharmaceuticals Inc (NASDAQ:ARIA) is a oncology focused biopharmaceutical company involved in developing treatment for various types of cancer. One of its drugs, Iclusig, was being clinically tested for some types of leukemia. The company was very confident of passing with flying colors. After all the trial was really an extension. The drug was being sold in the U.S. and the European markets for treating another form of leukemia and the company wanted to expand its usage. But the FDA was shocked by the adverse side effects. It found that the drug was causing clots and also increasing risk of heart diseases. Could the patients be left to deal with such serious adverse reactions? FDA asked the company to withdraw from the market. The European regulators did not take this hasty step.
Some Recovery:
Ariad Pharmaceuticals Inc (NASDAQ:ARIA) rallied and was able to convince the regulators to allow its sale. But now the universe has shrunk. The patient size is very small. Can the volumes sustain the company? It has signed a distribution agreement in Australia where it estimates the patient size to be only 1500. This will allow the company to survive after all Ariad can sell in the U.S., Europe as well as Australia. Other markets will also open up. There were reports that some companies may be interested in taking over Ariad. Looks unlikely, a single product company with a problematic drug is not an attractive takeover target.
Now the only option left for the company is to hasten its efforts for a new molecule.
