UPDATE: Citigroup Initiates Ariad Pharmaceuticals at Buy
Citigroup initiated coverage on Ariad Pharmaceuticals (NASDAQ: ARIA) with a Buy rating and a $31 price target.
Citigroup noted, "We believe ARIA's ponatinib is "best in class" in the ~$5bn WW leukemia (CML) market and our outlook is higher than consensus. Initial FDA/EU ponatinib approvals are widely expected by 1Q:13 and 2H:13 respectively, but a potential broader drug label would be upside to consensus, in our view. We expect ponatinib's Ph3 1st-line CML trial will stop early (2014) adding an additional ~$400M in 1st-line sales by 2018. We believe ARIA's lung cancer drug AP26113 is superior to PFE's Xalkori (crizotinib). Its dual mechanism also targets other lung cancer populations >3X crizotinib's market. With crizotinib `15 consensus estimates reaching ~$700M, our 2017 risk-adjusted AP26113 sales estimate of $240M is not a stretch."
Ariad Pharmaceuticals closed at $21.97 on Thursday.
Latest Ratings for ARIA
|Jan 2017||SunTrust Robinson Humphrey||Downgrades||Buy||Hold|
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