Major Setback For Ariad Pharmaceuticals Inc (NASDAQ:ARIA)

Posted by Samantha Donahue October 14, 2013 0 Comment 1179 views

Ariad Pharmaceuticals, Inc (NASDAQ:ARIA) shares plummeted almost 66% last week after the company announced that it has discontinued enrolling patients in ongoing-trials of the company’s leukemia drug  as some new data indicated that there was an increase in the number of patients who suffered heart problems and blood clots in a study that had been conducted earlier.

The United States Food Drug Administration regulators have ordered a partial clinical-hold on the Ariad trails until the point of time the company alters its clinical-study dosages as well as the eligibility rules. The FDA will also update a warning-label for Iclusig, the drug which the FDA has approved last December. This continues to be in the market.

Major setback

This is a major setback for the company which is a prominent one in the field. It is also a classic example of how high-risk the bio-tech industry as a whole, is. Years of expensive R&D can be thrown off-track with one negative report. Harvey Berger, the company’s Chief Executive Officer said that they took a decision and then communicated that with the Food drug Administration. He said that was the best approach and pausing the trial-enrollment was a good decision while the company makes some changes. He has also promised to address all the safety concerns in a swift manner.

Friday’s trading

In Friday’s trading, Ariad Pharmaceuticals, Inc (NASDAQ:ARIA) dropped by 21.26%. The opening price of the shares was $5.44, which climbed to an intraday high of $5.46 and dipped to a close of $4.26. Approximately 43.83 million shares were traded on Friday while an average volume of 9.36 million shares were traded over a 30 day period. The 52-week low of Ariad Pharmaceuticals, Inc (NASDAQ:ARIA) shares is $4.00 and its 52-week high is $25.40. The company has a market capitalization of $788.55.

About Samantha Donahue

Samantha Donahue is a digital fellow with GDP insider. Samantha earned a Bachelor's degree in Government from Cornell University and later his Master's degree in Journalism from Columbia University. She has also received numerous awards from the Associated Press, Society of Professional Journalists, and other media organizations for many of her exclusive stories. Samantha thrives reporting on breaking news and as a general assignments news reporter.

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