UPDATE: Maxim Group Cuts PT to $24 on ARIAD Pharmaceuticals; Label Warning Reduces Forecast
Maxim Group reiterated its Buy rating on ARIAD Pharmaceuticals (NASDAQ: ARIA) and a $24 price target.
Maxim Group said, "Unexpectedly, Iclusig's label contains a boxed warning on arterial thrombosis and hepatotoxicity. … The information suggests (1) Iclusig may have an disadvantage in competing against other CML drugs and (2) if physicians reduce dose to 15mg/day because of adverse events, Iclusig may generate smaller sales… We are reducing our peak penetration assumption to 22% from 30% to reflect potential hurdles for doctors to prescribe Iclusig. However, lower penetration is partially offset by higher-thanexpected selling price."
ARIAD Pharmaceuticals closed at $18.93 on Friday.
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