Ariad Pharmaceuticals Responds To Congressional Letter

Ariad Pharmaceuticals, Inc.ARIA

disclosed that it received a letter from Rep. Elijah Cummings (D-Md.) and Sen. Bernie Sanders (I-Vt.) seeking information on drug pricing. The company indicated that it would respond to the request. Both the leaders charged the drug firm of "repeated and staggering price increases."

While acknowledging the letters, Ariad reiterated its commitment to discovering, as well as, developing drugs for the treatment of rare cancers. In a statement, the company said, "The Company applies its deep in-house expertise and makes significant investments in research and development (R&D) to advance breakthrough treatments for patients."

Ariad disclosed that it recognized the high cost of drugs and pointed out that it invested over $1.3 billion in research and development. The company suffered accumulated losses of about $1.4 billion since its founding and has yet to recover them.

The drug maker cited that it invested 143 percent of revenue in R&D in 2015. While the company generated revenue of $119 million, its investment in R&D was $171 million.

At last check, Ariad was down 2.5 percent at $10.51.

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