Boston, MA 12/23/2013 (wallstreetpr) – American oncology firm Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) recently saw positive prospects for its key leukaemia drug Iclusig, with regulators European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA) temporarily revoking their earlier stay on the drug and permitting sales under controlled situations and conditions. The announcement by the regulators triggered a resurgent jump by Ariad’s stocks, which have climbed a steady 65% in the last week alone.
FDA backtracks?
Recently, FDA succumbed to increasing pressure and concerns arising from non-availability of the drug and voiced by numerous medical fraternities including patient welfare groups and doctors. Under its special program, FDA acceded to the continued purchase and administration of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s Iclusig medication exclusively for patients with previous demonstrated benefits. Only a few days earlier in November, EMA decided to allow Iclusig’s availability in European markets for the time being. However, the steady uproar by patient-oriented groups and communities taking up the cause to ensure better treatment may soon usher Iclusig back into markets.
The issue:
The whole incident, which left Ariad and its equity reeling under a fiasco, stemmed from FDA’s premature approval last December for the sale of Ariad’s star drug and key leukaemia solution Iclusig, which seemed effective in treating two kinds of leukaemia, namely, chronic myeloid leukaemia (CML) and Philadelphia chromosome positive acute lymphoblastic leukaemia (Ph+ ALL). However, following unusually large occurrences of blood clotting and narrowing of blood vessels in various cases of the Iclusig drug use and a prognosis raising the risk of lethal blood clots, the FDA temporarily suspended the drug’s sales in October 2013, which contributed to Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s stocks plunging disastrously from $17.14 to $5.83 in one day.
The Massachusetts-based Ariad’s prime business focuses on medicinal research, discovery and development, apart from the manufacture and commercial sales of medication for cancer patients. The pharmaceutical player had a disappointing third quarter, which saw revenue fall by about 19.4% from the corresponding FY2012 quarter. Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s stocks spiked 16% on NASDAQ on December 20, riding on the regulator decisions, to close at $6.43 from their previous $5.52, surging further to around $6.66 in after-hours trade.
