Boston, MA 10\/15\/2013 (wallstreetpr) –<\/p>\n
What happens when a company with a single product faces disappointing setbacks in its research on that product? The product has shown tremendous potential and the management has been very quick to share any small good information with the general public. They have raised expectations to a very high level, and the investors are waiting for commercialization and to monetize their investments. Then the bad news breaks, and the star performer may not be a performer at all.<\/b><\/p>\n
Ariad Pharmaceuticals, Inc.<\/b>\u00a0(<\/b>NASDAQ:ARIA<\/b>)<\/b> is a pharmaceutical company caught between the devil and the deep sea. The company is engaged in the discovery, development, and commercialization of pharmaceutical treatments for cancer. The product, Iclusig, showed tremendous potential for treatment of aggressive forms of Leukemia. It was being seen at as a possible second line of treatment for such cancers. Test reports were so encouraging that the company felt that it had the potential to be used as a front line treatment. Market potential was very high. Clinical trails were underway.<\/p>\n
The U.S. Food and Drug Administration got worried about the adverse side effects of the drug. They issued an advisory on October 8, 2013. Ariad was forced to halt new trials and reduce dosage in the existing trials. Investors saw the huge market potential vanish before their eyes as analysts started discussing the possibility of Iclusig being relegated to the last line of treatment \u2013 a sector with well entrenched and established competitors. \u201cBuy\u201d ratings of many analysts were downgraded to \u201cHold\u201d. With no other product in the pipeline, Ariad was a no getter. Investors panicked and the stock lost 66% in one day.<\/p>\n
More bad news was on the way. USFDA advised doctors and patients to report any adverse side reactions to the drug. Some of the reported side effects were stroke and the narrowing of blood vessels, arising from life threatening and severe clot formation.<\/p>\n
The stock is in a tailspin, losing 1.41% on Monday, October 14, 2013 to close at $4.20 before touching the 52 week low of $3.98 per share. Volumes were very high at 34.04 million against average volumes of 9.36 million. People were deserting a sinking ship.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/15\/2013 (wallstreetpr) – What happens when a company with a single product faces disappointing setbacks in its research on that product? The product […]<\/p>\n","protected":false},"author":12,"featured_media":10066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[3316,3315,2780,2781],"stock_ticker":[],"class_list":["post-10065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-aria","tag-ariad-pharmaceuticals-inc","tag-ariad-pharmaceuticals-inc-nasdaqaria","tag-nasdaqaria","entry"],"acf":[],"yoast_head":"\n