Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA ) Gets Support From Analysts And Shareholder

Posted by admin January 27, 2014 0 Comment 2517 views

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) , the cancer-therapy developer, witnessed the stock prices rise for a third consecutive trading session. The company had lost as huge as 64% in value during the last year, after its flagship drug Iclusig was pulled off from the U.S. market. The recent rally came in light of speculative indications of a possible takeover and mostly because of MO capital’s revised outlook on the stock.

BMO Revised Its Outlook

Ariad Pharmaceuticals entered into one of the best trading session on Friday, after analyst at BMO assigned ‘outperform’ rating to the company. The analyst, Jim Birch enough upgraded the stock from ‘Marketperform’ and also lifted the price target to $14 from that of $8 earlier. Birchenough noted that the company and particularly, its drug Iclusig, holds a significant value, which remains to be realized. He also stressed on the efficient drug discovery platform that Ariad has and opines that the company’s assets are attractive enough to draw attention of large pharma leaders. Of late, Ariad has been soaring after the ‘Daily Mail’reported the possibility of its takeover. On top of which, the company’s acceptance to BMO for looking at all angles in the future, including M&A and partnerships further strengthened the investor’s confidence.

Stake OfSarissa Capital Management

Recently, Sarissa Capital Management , an activist investment fund and run by Alex Denner, disclosed that they have increased their stake in the company. They now hold 12 million shares, which is 6.5%  ownership as against their previous stake of 6.2%. Sarissa has assumed the position of second biggest stakeholder for Ariad and has been in talks with the company, demanding representation on its board. Apart from this,  Denner has also reiterated the faith in Ariad’sIclusig,which, according to him has greater potential to benefit a broader range of the population. As of now, GlaxoSmithKline Plc, Eli Lilly & Co. and Shire Plc, are rumored to be eyeing acquisition of Ariad

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