UPDATE: Oppenheimer Ups PT to $20 on Ariad Pharmaceuticals
Oppenheimer reiterates its Outperform rating on Ariad Pharmaceuticals (NASDAQ: ARIA) and raises its price target $3 to $20 as the company's Ponatinib PACE data at ASCO may present a major near-term catalyst.
Oppenheimer says, "Based on interim results, we expect strong 6-month PACE data for ponatinib at ASCO, followed by U.S/E.U. approvals in 1Q13/mid-13, respectively. In 3Q12, ARIA plans to start a ph.III confirmatory trial in newly diagnosed CML. With a design similar to Tasigna's ph.III, we expect ponatinib to clearly outperform Gleevec, leading to earlier line approval/use in '15. We believe ridaforolimus' ph.III sarcoma results are modest, but believe the drug's overall benefit-risk supports mid-'12 approval. We believe AP26113 has promising dual ALK/EGFR activity and we expect promising ph.I/II results in 2H12. We expect further appreciation of ARIA in '12, with increasing clarity on ponatinib's commercial potential."
ARIA closed at $15.16 a share on Tuesday.
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