UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Ariad Pharmaceuticals Following Oncology Survey

In a report published Wednesday, Bank of America analyst Rachel McMinn reiterated a Buy rating on Ariad Pharmaceuticals

, and slightly raised the price target from $26.00 to $27.00. In the report, McMinn noted, “In conjunction with a large oncology survey across therapeutic areas we completed a survey of 80 US oncologists where we included two questions on ALK status testing and the treatment of ALK+ non-small lung cancer patients. Our survey shows that PFE has been very successful in building the ALK market with the introduction of first generation ALK inhibitor, Xalkori, and the market should continue to expand as testing rates steadily increase. We believe the survey trends bode well for ARIA's next generation ALK inhibitor '113, which is completing a dose escalation study shortly and advancing into a pivotal study this year. We are adjusting our ‘113 product model to reflect testing trends and recent PFE Xalkori sales. As a result, Our PO increases from $26/sh to $27/sh to reflect upward revisions to ‘113 prospects.” Ariad Pharmaceuticals closed on Tuesday at $20.89.