UPDATE: Bank of America Downgrades Ariad Pharmaceuticals to Neutral, Lowers PT on Uncertain Iclusig Outlook

In a report published Thursday, Bank of America analyst Rachel McMinn downgraded the rating on

from Buy to Neutral, and lowered the price target from $24.00 to $7.00. In the report, Bank of America noted, “We rate ARIA a Neutral based on our view that uncertainties on the Iclusig safety profile will weaken near term adoption, limit visibility on timelines for future development, and limit overall market potential. ARIA's emerging second drug '113 potential is also uncertain given safety concerns and a competitive development environment.” Ariad Pharmaceuticals closed on Wednesday at $5.83.