UPDATE: Credit Suisse Raises PT on Ariad Pharmaceuticals, View Remains Cautious

In a report published Monday, Credit Suisse analyst Jason Kantor announced a price target increase from $2.50 to $5.00 at Ariad Pharmaceuticals, Inc. ARIA.

The report summary 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.”

Some highlights from the report included:

-”Revised indication is modestly more restrictive but a good outcome for ARIA.”

-”Operating structure is biggest concern.”

-”Lack of near-term catalysts.”

Monday morning shares of Ariad are trading up to 9 percent.