Ariad Pharmaceuticals, Inc.
) reported fourth quarter loss of 36 cents per share, compared
with the year-ago loss of 23 cents per share. The Zacks Consensus
Estimate for the fourth quarter was in line with the company's
The company's fourth quarter 2012 revenues decreased 5.2% to
$0.07 million much below the Zacks Consensus Estimate of $1
Research and development (R&D) expenses climbed 52.5% to
$37.6 million in the final quarter of 2012. The increase was
attributable to the company's efforts to develop its pipeline.
General and administrative (G&A) expenses jumped 227.1% to
$22.9 million in the fourth quarter of 2012. The massive increase
was primarily attributable to the expenses incurred by the
company in preparation of the launch of Iclusig.
We note that in Dec 2012, the US Food and Drug Administration
(FDA) granted accelerated approval to Iclusig (ponatinib) for use
in heavily pretreated patients, suffering from resistant and
refractory chronic myeloid leukemia (CML) and Philadelphia
chromosome-positive acute lymphoblastic leukemia (Ph+ ALL).
Full year 2012 loss was $1.24 per share, wider than the
year-ago loss of $0.58 per share, but narrower than the Zacks
Consensus Estimate of a loss of $1.33 per share. Full year
revenues came in at approximately $0.6 million compared with
$25.3 million in 2011. The Zacks Consensus Estimate for the full
year was $1 million.
Apart from releasing its financial results, Ariad Pharma also
provided guidance for 2013. Ariad Pharma expects R&D expenses
in the range of $238−$248 million ($144.7 million in 2012). The
guidance reflects the increase in development expenditure related
to Iclusig and pipeline candidates including AP26113, which is
being developed for the treatment of non-small cell lung cancer
and other tumors.
Ariad Pharma expects G&A expenses in the range of
$108−$116 million ($60.9 million in 2012). The increased guidance
reflects the company's efforts to expand further.
We are pleased by the U.S. approval of Iclusig. Ariad Pharma
is looking to get Iclusig approved in additional markets. The
drug is under accelerated assessment review in the EU for
treating adults with resistant or intolerant CML or Ph+ ALL.
Ariad Pharma expects Iclusig to be approved in the EU in the
third quarter of 2013. The company expects to seek Iclusig's
approval in Canada, Switzerland and Australia in the second half
of 2013. Japanese approval of the drug is expected to be sought
in Japan in mid-2014. Ariad pharma also intends to expand the
label of Iclusig into additional indications such as
gastrointestinal stromal tumors, molecular lung cancers, acute
myeloid leukemia and other solid tumors.
Ariad Pharma currently carries a Zacks Rank #3 (Hold). Pharma
stocks, which currently appear to be more attractive, include
United Therapeutics Corporation
Lannett Company, Inc.
SIGA Technologies, Inc.
). All three companies carry a Zacks Rank #1 (Strong Buy).
ARIAD PHARMA (ARIA): Free Stock Analysis
LANNETT INC (LCI): Free Stock Analysis Report
SIGA TECH INC (SIGA): Free Stock Analysis
UTD THERAPEUTIC (UTHR): Free Stock Analysis
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