ARIAD Pharmaceuticals (ARIA) PT Reduced to $7 at UBS, Stock Remains Neutral Rated

UBS maintained a Neutral rating on ARIAD Pharmaceuticals (NASDAQ: ARIA) and reduced its price target to $7.00 (from $7.50).

Analyst Andrew Peters said," Key points: [1] The primary driver of long-term value remains the potential to move Iclusig into earlier lines of therapy. With the ph2 dosing study expected to start 2H14, we see several years until this potential is better understood. [2] Based on the current profile and expert feedback, we think Iclusig is a good drug which should see strong utilization into labeled indications, however consensus expectations are high and we see little near-term upside risk to numbers. [3] The pipeline beyond Iclusig in CML is promising, with AP26113 a potentially best-in-class ALK+ inhibitor in NSCLC and early Iclusig data suggesting a role in GIST patients. We also see reasons to be skeptical, with '113 potentially 3rd to market, and the GIST opportunity too early to give credit without knowing the development path. [4] With a wholly owned commercial oncology asset, we concede a strong rationale for strategic interest but believe that a broad and competitive process is more likely once the Iclusig risk profile has been better defined."

For an analyst ratings summary and ratings history on ARIAD Pharmaceuticals click here. For more ratings news on ARIAD Pharmaceuticals click here.

Shares of ARIAD Pharmaceuticals closed at $7.02 yesterday.

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