$ARIA Tale of the Tape


ARIAD (ARIA) Posts Wider-than-Expected Loss in Q2 – Tale of the Tape

Cambridge, MA based ARIAD Pharmaceuticals, Inc.(ARIA) is a biopharmaceutical company focused on the discovery, development and commercialization of breakthrough treatments for cancer. ARIAD’s only approved product is Iclusig (ponatinib). Iclusig, a tyrosine kinase inhibitor (TKI), is approved both in the U.S. and EU for the treatment of adult patients suffering from T315I-positive chronic myeloid leukemia (chronic, accelerated or blast phase) or Philadelphia chromosome positive acute lymphoblastic leukemia (or for whom no other TKI therapy is approved.


ARIAD is working on evaluating Iclusig in earlier lines of treatment and is on track to initiate three studies in 2015. In this scenario, investor focus will remain on updates on the performance of Iclusig as well as on evaluating the company’s progress with its strategic plans targeting sustained profitability, starting 2018.

ARIAD has a mixed track record with the company beating estimates in two of the last four quarters with an average positive earnings surprise of 17.55%. Estimate revisions are, however, flat for 2015.

Currently, ARIAD has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: ARIAD posted a wider-than-expected loss in the second quarter of 2015. Our consensus called for a loss of 29 cents per share and the company reported a loss of 33 cents.

Revenues: Revenues were marginally above expectations. ARIAD posted revenues of $29.2 million, compared to our consensus estimate of $29 million.

Key Stats: Iclusig continued to perform well in the second quarter of 2015. ARIAD is on track to complete patient enrolment in a pivotal phase II study (ALTA) on brigatinib (non-small cell lung cancer) in the third quarter of 2015. ARIAD also inked a non-dilutive, synthetic-royalty deal with PDL BioPharma based on net sales of Iclusig. The deal could see ARIAD receiving as much as $200 million that will be used to fund clinical development and commercialization of brigatinib, upon approval.

2015 Guidance: ARIAD continues to expect Iclusig sales in the range of $130 million to $140 million in 2015. However, R&D expenses are now expected in the range of $177 million to $183 million (previous guidance: $185 million to $195 million). SG&A expenses are expected in the range of $166 million to $172 million (previous guidance: $135 million to $145 million).

Check back later for our full write up on this ARIAD earnings report later!


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