ARIAD Pharma (ARIA) Tops Q1 EPS by 3c; Revises Certain FY16 Guidance

ARIAD Pharma (NASDAQ: ARIA) reported Q1 EPS of ($0.23), $0.03 better than the analyst estimate of ($0.26). Revenue for the quarter came in at $35.6 million versus the consensus estimate of $43.27 million.

2016 Financial Guidance

• Following the anticipated closing of the transaction announced yesterday in which ARIAD has agreed to sell its European operations and license commercial rights to Iclusig in Europe to Incyte, we are revising our product revenue guidance for 2016 and providing expense and year-end cash guidance for 2016, as follows:
  • Global Iclusig net product and royalty revenues are expected to be in the range of $170 million to $180 million, compared to previous guidance of $190 million to $200 million, reflecting a reduction in European product revenue and the addition of royalty revenue following the Incyte transaction. Of the $170 million to $180 million, approximately $162 million to $170 million consists of expected product revenue, and $8 million to $10 million consists of expected royalty revenue.
  • Research and development and sales, general and administration expense are expected to be as follows:
    • $175 million to $180 million for research and development expense
    • $120 million to $125 million for sales, general and administration expense

    This new 2016 expense guidance reflects an expected reduction in expenses of approximately $30 million from the planned divesture of our European business to Incyte.

• Cash position at December 31, 2016 is expected to be in the range of $280 million to $290 million, including the $140 million upfront payment from Incyte and $50 million to be received under our royalty financing agreement with PDL.

• The foregoing 2016 financial guidance reflects the anticipated completion of the transaction with Incyte, which is expected to close on or about June 1, 2016, subject to customary closing conditions. In addition, the revenue guidance assumes that pricing and reimbursement approval in France (and the corresponding recognition of revenue) will occur prior to the closing of the Incyte transaction.

For earnings history and earnings-related data on ARIAD Pharma (ARIA) click here.

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