Is Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) A Market Mover?

Denver, CO, 04/07/2014, (Avauncer.com) – Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s leading product Iclusig has a competitive advantage over other to treat chronic blood cancer. The product is well accepted across the U.S. and Europe, and reported an increase in revenue since launch. However, the stock is highly volatile in last 12 months and now, trading at low price of $7.48. The Company anticipates positive movement due to initiation of Phase 2 trial for AP26113 against lung cancer. Ariad is unable to regain investors’ confidence that may be due to disappointing performance. It is believed that the stock will rebuild shareholder’s value in the long-term due to strong growth potential of Iclusig.

Factors that affect performance

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) continues to focus on commercialization of Iclusig and development of new products that lead to negative earnings for the Company. During 4Q2013, operating expenses were $21.6 million that leads to higher net loss of $74.2 million, or $0.40 per share, compared to prior year period.

But, the loss was partly offset by increasing revenues of Iclusig across major regulated markets. During 4Q2013, Iclusig reported net sales of $8.3 million and continue to increase in coming years that will drive overall revenue for the Company.

Financial strength

Ariad has sufficient funds to operate and focus on marketing its products globally. The Company is improving its cash position year-on-year and reported cash balance of $237.2 million as of December 31, 2013, compared to $164.4 million as of December 31, 2012.

Ariad’s opportunities

Chronic blood cancer becomes incurable in patients with specific genetic conditions as there are hardly any medicines to treat. The incidence rate remains high with such patients as the approved therapies are unsuccessful. Leading drug (Gleevec) will expire in 2015 that allow generics and new medicines to the market against chronic blood cancer. On such conditions, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s Iclusig has solid growth opportunity due to a significant result against the abnormal case the available treatment are inefficient.

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