Boston, MA 10/22/2013 (wallstreetpr) – After plunging more than 40% Friday last week, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) showed a positive rally on Monday, gaining $10.11% to close up $2.94, but dropped 0.68 in the after hours. When the company abruptly announced termination of clinical trials on its leukemia drug, the stock exchange market reacted negatively to this announcement. By last Friday, the company’s stock completed its nearly 84% drop in value.
The company whose key focus is in the discovery, development and commercialization of cancer patient medicines had raised a lot of hopes with its drug candidate Iclusig. The dug company had hoped to convert its Iclusig caner treatment line into the answer for patients newly diagnosed with the chronic myeloid leukemia in addition to the cancer patients showing resistance to other treatments. But it has now abandoned that route, effectively casting a dark shadow over its future. And this has apparently left investors beleaguered, causing its value hemorrhage at the NASDAQ.
The reason behind the discontinuation of Iclusig is that it was noted that patients taking it had problems such as stroke, blocked arteries, and heart attacks. This was according to data compilation from some 150 sites in 20 countries covered in the pivotal trial. Although the drug reported these problems in patients, there are no reports yet of deaths or side effects due to the use of the drug in the trial patients.
It is not immediately known how the company is going to salvage itself from these devastating setbacks on its share performance. But it obviously now has a smaller treatment market than had been hoped for. However, the drug maker still has better standing in the treatment resistant segment for its cancer drug.
With its Q3.13 earnings release coming up on November 6, the cancer-drug developer has increased pressure on it to impress its investors. As of Monday, October 21, ARIA has $544.2 million in market cap.
