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ARIAD Pharmaceuticals, Inc. (ARIA)
Q3 2010 Earnings Call
November 9, 2010 08:30 am ET
Dr. Harvey Berger – Chairman and Chief Executive Officer
Ed Fitzgerald – Executive Vice President and Chief Financial Officer
Dr. Tim Clackson – President of Research & Development and Chief Scientific Officer
Maria Cantor – Vice President, Corporate Communications and Investor Relations
Ryan Martins - Barclays Capital
Eun Yang – Jefferies
Eric Cheung – Oppenheimer
Jonathan Eckard - Leerink Swann
Joel Sendek – Lazard Capital Markets
Ling Wang – Brean Murray
Previous Statements by ARIA
» ARIAD Pharmaceuticals, Inc. Q2 2010 Earnings Call Transcript
» ARIAD Pharmaceuticals, Inc. Q1 2010 Earnings Call Transcript
» ARIAD Pharmaceuticals Inc. Q4 2008 Earnings Call Transcript
Good morning, and welcome to ARIAD’s investor call. This morning we will report on financial results and corporate developments for the Q3 of 2010. Joining me for this call are Dr. Harvey Berger, our Chairman and Chief Executive Officer; Mr. Ed Fitzgerald, our Executive Vice President and Chief Financial Officer; and Dr. Tim Clackson, our President of Research & Development and Chief Scientific Officer.
Before we get started I would like to state that during this conference call we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors, risks, and uncertainties such as those detailed in our Form 10K for the year ended December 31st, 2009, and other SEC filings that may cause actual results to differ materially from the results expressed or implied by such statements. Now I would like to turn the call over to Dr. Berger for this morning’s opening remarks.
Dr. Harvey Berger
Thank you, Maria, and good morning everyone. This is a very promising time at ARIAD. As we report our Q3 2010 financials to you this morning, the company has never before had the level of excitement or reason for optimism that we do today. We have three internally discovered and molecularly targeted oncology product candidates in our pipeline, two of which are in late stage clinical development and a third which we expect to advance in the clinic in mid-2011. And our newly strengthened financial position provides us with the ability to carry these product candidates through well-defined points of value creation.
Ponatinib, previously known as AP24534, is our investigational pan-BCR-ABL inhibitor, currently in a global clinical trial in patients with resistant or intolerant chronic myeloid leukemia. We expect that the time to full patient enrollment and patient follow-up in the pace trial, and to potential regulatory filings for marketing approval, will be prompt and predictable given the strength of the clinical data to date.
AP26113, our investigational anaplastic lymphoma kinase inhibitor is advancing through IND enabling studies. We expect to file the IND for AP26113 in the middle of next year and to be in the clinic very soon thereafter. “113” as we call it has shown in preclinical studies to have much higher potency than Pfizer’s ALK inhibitor Cryzotanid (sp) and to inhibit mutated forms of ALK that are now being observed in patients becoming resistant to Cryzotanid.
This is a scenario that mirrors very closely our preclinical experience with Ponatinib, and the currently available BCR-ABL inhibitors for whom resistance has emerged as an impediment to successful treatment in some patients.
Finally, Ridaforolimus, our investigational mTOR inhibitor has recently shown strong clinical potential for patients with advanced endometrial cancer, and at the same time is at the cusp of having final results reported from the global phase III Succeed trial in patients with metastatic soft tissue and bone sarcomas.
As I mentioned earlier, we have three product candidates in our oncology pipeline, each highly promising, two in late stage development, and a solid balance sheet to support them. I’m going to start first by asking Ed Fitzgerald to provide our financial overview and then Tim Clackson to provide an update on R&D.
Thank you, Harvey. Good morning, everyone. Let me start by highlighting a point that Harvey alluded to in his opening remarks. Our recently completed capital raise, which netted us approximately $57.4 million, significantly strengthens our balance sheet and provides us with a cash runway into the second half of 2012. With the significant progress we continue to make in our research and development programs we are very pleased to have the resources necessary to support them.
Now a review of our financial results as of September 30th, 2010, as detailed in our press release this morning. For the quarter ended September 30th, 2010, we reported a net loss of $20.4 million, or $0.18 per share, compared to a net loss of $20.8 million, or $0.21 per share, for the same period in 2009. For the nine month period ended September 30, 2009 we reported net income of $115.6 million or $1.05 per share compared to a net loss of $62 million or $0.70 per share for the same period in 2009. Net income for the nine month period ended September 30, 2010, reflects primarily the positive impact of our restructured agreement with Merck entered into in May of this year for the development, manufacture, and commercialization of Ridaforolimus in oncology. This agreement resulted in the recognition of $175 million in revenue in the Q2 of 2010.