Ariad's 66% Collapse: Safety Trumps All

This episode of The Motley Fool's Market Checkup drills down on the hottest headlines and biggest market movers in the health-care sector. 

In this video, health-care analysts David Williamson and Max Macaluso discuss Ariad Pharmaceuticals' shocking 66% plunge. The drop came from safety issues regarding its only approved drug, Iclusig. Ariad plans on adjusting the dosing downward so patients can continue on their trials.

Currently, Iclusig is a secondary treatment for leukemia, but it is hoping to become a frontline drug for the disease as well as picking up seven additional indications. That is why the sell-off was so steep: Tolerability issues could hamper its sales in all of its indications and make it a drug of last resort in leukemia, where there are already a number of deep-pocketed competitors.

Watch and find out what today's news means for Ariad shareholders and its competitors.

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