ARIAD Pharmaceuticals, Inc.
) recently announced the closure of its previously announced
public offering. ARIAD Pharma priced the public offering of 15.3
million common shares at $19.60 per share, including 1.18 million
shares sold to underwriters to cover the over-allotment
ARIAD Pharma plans to use the net proceeds from this offering
- approximately $310 million after deducting underwriting
discounts and commissions and estimated offering costs - to
facilitate the sales, marketing, manufacturing and distribution
of its oncology candidate Iclusig (ponatinib) on approval. The
company also intends to use the net proceeds from the offering to
develop its other pipeline candidates.
We believe that investor focus will remain on the approval of
Iclusig. The candidate is under review in the US and EU for
treating patients suffering from resistant or intolerant chronic
myeloid leukemia (CML) or Philadelphia-chromosome positive acute
lymphoblastic leukemia (Ph+ ALL). A decision from the US Food and
Drug Administration (FDA) is expected by Mar 27, 2013.
In Aug 2012, ARIAD Pharma submitted a Marketing Authorization
Application (MAA) for the candidate for the same indication to
the European Medicines Agency (EMA). ARIAD Pharma had requested
accelerated assessment of the MAA for the candidate, which was
granted by the Committee for Medicinal Products for Human Use
(CHMP). ARIAD Pharma expects the candidate to be cleared in the
EU in the third quarter of 2013.
ARIAD Pharma currently carries a Zacks Rank #3 (Hold). Pharma
stocks, which currently appear to be more attractive, include
WuXi PharmaTech Inc.
). All three companies carry a Zacks Rank #1 (Strong Buy).
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