Major Setback For Ariad Pharmaceuticals Inc (NASDAQ:ARIA)
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.
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.
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.