Ray Of Hope For Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)
Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s stock is making great buzz along the street with close to 40% gains, so far in this week. Even yesterday the stock was up 10.84% and closed at $5.52, around 156% above its 52 week low of $2.15. The stock has doubled its value during past one month, with close to 111.5% gains. Alongside the price rise, the strength can also be seen in its trading volume. More than 66.4 million shares exchanged hands during yesterday’s session as compared to its 30 day average volume of 21.79 million shares.
Ariad, EMA and Iclusig
Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) early this month get a setback when the European Medicines Agency (EMA) decided for an in-depth review of Iclusig, a drug to treat certain types of Leukemia. However the recent rally in Ariad’s stock price could also be attributed to EMA’s meeting agenda posted to its website which denotes that EMA will review Ariad’s Iclusig at its December meeting.
Earlier in July 2013, Iclusig was approved in the EU for couple of indications including that of accelerated phase chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. Even the USFDA also temporarily suspended marketing and commercial distribution of Iclusig in Oct. 2013. The suspension was in the wake of higher than expected incidence of reported side effects, mainly narrowing of blood vessels and blood clotting.
Following the USFDA’s temporary suspension for the sale of Iclusig, the stock of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) crashed 80%. The suspension came in less than a year as the drug was approved by the USFDA in last December.
The suspension cost a lot to the company and well beyond the sharp tank in its share prices. Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)’s CEO Harvey Berger was recently ranked at No. 2 in “The Worst Biotech CEO of 2013” list as Berger accumulated 14% of the votes cast. The list was topped by Vijay Samant, CEO of Vical Inc. (NASDAQ:VICL), who accumulated surprising 71% of the votes cast.