UPDATE: BMO Capital Markets Downgrades Ariad Pharmaceuticals to Market Perform, Lowers PT on AP26113 Disappointment, Tempered ICLUSIG Expectations

In a report published Monday, BMO Capital Markets analyst Jim Birchenough downgraded the rating on Ariad Pharmaceuticals ARIA from Outperform to Market Perform, and lowered the price target from $37.00 to $21.00. In the report, BMO Capital Markets noted, “We are downgrading our rating on ARIA to Market Perform and reducing our price target to $21. While AP26113 may have best-in-class efficacy in ALK+ NSCLC, pulmonary toxicity could be an issue in positioning against multiple emerging competitors. Updated data in EGFR+ T790M NSCLC and expert feedback suggest unfavorable positioning against more active competitors CO1686 and AZD9291. With AP26113 option value limited and the focus returning to the ICLUSIG launch, flattening TRx trends, timelines to 3Q14 for EPIC and questions on generalizability of single-center frontline data at ASH will likely leave ARIA shares range-bound.” Ariad Pharmaceuticals closed on Friday at $18.69.
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Posted In: Analyst ColorDowngradesAnalyst RatingsBMO Capital MarketsJim Birchenough
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