Ariad Pharmaceuticals Shares Plunged: What You Need to Know (ARIA)

Ariad Pharmaceuticals Shares Plunged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotech Ariad Pharmaceuticals (Nasdaq: ARIA ) are plunging by as much as 13% today after a phase 2 study showed serious side effects from its experimental ponatinib drug.

So what: The American Society of Hematology released an abstract showing that 17% of chronic myeloid leukemia patients using the drug experienced serious side effects. As a result, roughly 15% of the patients stopped using the drug.

Now what: With as many studies, trials, and regulatory approvals any drug faces on the long and winding road to market, running up against any roadblock can have serious consequences. With only three drugs currently in the pipeline, the company has a lot riding on ponatinib. Last quarter's revenue totaled just $25.1 million yet the company commands nearly a $1.6 billion market cap; this stock deserves a little bit of bashing.

Interested in more info on Ariad Pharmaceuticals? Add it to your watchlist by clicking here.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On November 07, 2011, at 5:10 PM, jdudas2 wrote:

I thought the conclusion from the abstract study looked good!
Conclusion: In this first analysis of the pivotal PACE trial, ponatinib has a favorable early safety profile, similar to that observed in phase 1, but with a lower incidence of pancreatitis. Initial response data after short follow-up indicate ponatinib has substantial anti-leukemic activity in this heavily pretreated population, and in pts with refractory T315I. These early efficacy signals replicate initial response results reported in the phase 1 setting. Updated data will be presented at the annual meeting.
Report this Comment On November 07, 2011, at 5:53 PM, Cado05 wrote:

Ariad’s Second Cancer Drug Found Safer Than Expected in Early Review of Key Study, so I dont know from author got conclusion that is other way????!!! Check this data:
http://www.xconomy.com/boston/2011/11/07/ariads-second-cance...
Pleas Evan dont fool investor If You cant comprehent data from this trial.
Report this Comment On November 07, 2011, at 9:45 PM, TruffelPig wrote:

Who knows whether the one and the other are even related. What is 13% these days? Maybe in two days ARIA gains it back. I would not be surprised, one day events do NOT shock me anymore, really.
One stupid headline will do this these days. Maybe a hedge fund needed to complete the position at a better price.
Report this Comment On November 08, 2011, at 9:52 AM, rlparkinson wrote:

This is the second article in a week with inaccurate negative information about Ariad from two different authors at the Fool. They either do no research or have an agenda. Either way they should not be relied upon for investment information or advice.
Report this Comment On December 07, 2011, at 10:56 AM, ocaladick wrote:

This is not the first time a totally negative article has been written erroneously about Aria. I say, keep it up, ye of little knowledge! I can buy it cheaper whenever you come out with your drivel. Thank you for my profits so far and hope to make many more...

updated 22 hours ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

ARIA	$16.77		-0.08	-0.47%
Ariad Pharmaceutic…		CAPS Rating:

2

Ariad Pharmaceuticals Shares Plunged: What You Need to Know

Watch stocks you care about

Comments from our Foolish Readers

Report this Comment On November 07, 2011, at 5:10 PM, jdudas2 wrote:

Report this Comment On November 07, 2011, at 5:53 PM, Cado05 wrote:

Report this Comment On November 07, 2011, at 9:45 PM, TruffelPig wrote:

Report this Comment On November 08, 2011, at 9:52 AM, rlparkinson wrote:

Report this Comment On December 07, 2011, at 10:56 AM, ocaladick wrote:

Add your comment.

Compare Brokers

Report This Comment

Sending report...

Today's Market

Create My Watchlist

You don't seem to be following any stocks yet!

Most Popular Articles

Related Tickers