Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) Is Buzzing Again
Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) the Cambridge based small cap drug maker with a market cap of $1.27 billion has had a great end to 2013. The slew of good news about their stock holdings came to the share holders of this drug maker on December 20, when the Food and Drug Administration allowed the company to reintroduce its only commercially viable drug Iclusig into the U.S markets. Iclusig is a cancer curing drug specifically designed to treat Leukemia.
FDA Allows Iclusig Reintroduction with Prescription Changes
This approval came after Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) agreed to make changes to its prescribing format and treatment risk management plan. When this result became public, the stock surged to post a super impressive 41 percent increase in value in December, thereby making up substantially for the 64 percent dip in value the stock had seen during trading in the past 12 months.
October Pull Out
Readers should note that Iclusig which had got cleared by FDA in 2012 for treating Leukemia had to be pulled off the market in October 2013, when re-investigations were announced to check on the efficacy of the drug in treating certain target population suffering from Leukemia. Post the review by FDA, the same drug has been approved to be used for treating a smaller target patient group. The approval also prescribes post sale follow up by Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) which would include “oversight over safety concerns and trial testing other doses.” When this drug pull out was announced, the markets panicked and a general sell out of the stock happened.
Ariad Pharmaceuticals, Inc Back On Track
With the latest conditional go ahead by FDA, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) plans to recommence the sale of its only drug Iclusig by middle of this month. With their main source of income, from their only marketable drug (it had accounted for net sales of $37 million before it pull out) drying up, the firm had resorted to whole sale cost cutting measures including employee retrenchment to tide over the situation.