UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Ariad Pharmaceuticals as Iclusig Re-Launch is Expected to be Bumpy

In a report published Monday, Credit Suisse analyst Jason Kantor reiterated a Neutral rating on

, and raised the price target from $2.50 to $5.00. In the report, Credit Suisse noted, “Iclusig will be made available again in the US in January following the FDA's approval of the new label and the risk evaluation and mitigation strategy (REMS) program. We believe that ARIA will have difficulty driving broad adoption of Iclusig due to its tarnished safety profile. We are increasing our TP to $5 from $2.50, but maintaining our Neutral rating due to the lack of visibility into the new launch trajectory, our cautious view of its pipeline, and the financing overhang from its operating structure. Changes to our model increased our 2014 and 2015 EPS estimates.” Ariad Pharmaceuticals closed on Friday at $6.43.