Boston, MA 02/27/2014 (wallstreetpr) – Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), after posting better than expected results at a time when it has come to known as controversial and volatile, is now attracting news analysts’ sentiments. Yet the company is also blowing its own trumpet and placing a lot of hopes in its recently re-launched leukemia drug Iclusig.
The company is greatly concerned with the development of cancer therapies, perhaps moved by the increasing cancer deaths and casualties. Iclusig is its latest attempt at dealing with cancer in adult patient, but the drug had a fault start, getting pulled from shelves in the U.S. over safety issues. But it has since gained marketing rights in the U.S. and other markets like Europe and Australia where commercial production are expected to result in significant revenue for the company.
Expectations
Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) recenltly announced Iclusig distribution agreement with an Australian company. The move is expected to expand the market for the drug so that better revenue can be realized. With the cost of the drug being fairly high, even a small group of patents on commercial supply of the drug is enough to uplift the financial status of the company.
By the end of the current fiscal year, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) expects to have cash and equivalents in the range of $60 to $70 million. That, it said, would be sufficient to fund operations through first half of 2015.
Reality highlights
Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) reported that it generated revenue of $8.35 million in the fourth quarter, that revenue figures was greatly boosted by Iclusig sales. Nonetheless, net loss was just as high, in fact higher by 23 percent to $74.2 million, thus reflecting 40 cents per share. In the fourth quarter of 2012, net loss was $60.5 million or 36 cents per share. The big loss was blamed on the high operating expenses which hit $21.6 million.
Even though Iclusig was the highlight of sales in the just reported quarter, expenses related to its sell and commercialization were just as high, spiking 62.2 percent, thus pushing up the net loss.
Takeaway
Even though Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) resulted a bigger loss, the loss was better than what analysts had anticipated. Analysts expected loss of 47 cents on revenue of $6.31 million. The stock of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) was last seen down 1.38 percent to $8.55.
