Jefferies Cuts PT on ARIAD Pharma (ARIA) Due to Iclusig Safety Issues, Maintains Buy

December 17, 2012 7:56 AM EST Send to a Friend
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Price: $5.59 -3.45%

Rating Summary:
    10 Buy, 12 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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On Friday ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA) announced the U.S. Food and Drug Administration (FDA) has granted accelerated approval of Iclusig (ponatinib). Despite the good news, analysts at Jefferies lowered their price target on ARIAD Pharma to $23 from $27, though they maintained a Buy rating. The price cut relates to new information about a box warning on previously undisclosed safety issues.

“Unanticipated black box warning for arterial thrombosis and hepatotoxicity in the label dampens ~3-month earlier approval excitement. Surprising SEs include arterial thrombosis (8% serious arterial thrombosis in Iclusig-treated pts), and hepatotoxicity resulting in 3 fatal cases of liver failure (1 fulminant hepatic failure within 1 wk of Iclusig tx, and 2 acute liver failures at unknown time), noting that 'severe hepatotoxicity occurred in all disease cohorts'; incidence of Grade 3/4 ALT/AST elevations was 8%, with 56% for all grades)," said analyst Eun K. Yang, Ph.D.

"This is surprising as at ARIA's most recent PACE data presentations at ASH (12-month FU), liver failure cases were not disclosed, although presentations did note arterial thromboembolism, including arterial stenosis, observed in patients with CV risk factors," continued Yang.

Jefferies has a Buy rating on ARIAD Pharmaceuticals with a modified price target of $23.00 (from $27.00)

For an analyst ratings summary and ratings history on ARIAD Pharmaceuticals (NASDAQ: ARIA) click here. For more ratings news on ARIAD Pharmaceuticals click here.

Shares of ARIAD Pharmaceuticals closed at $18.93 yesterday.


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