UPDATE: Credit Suisse Downgrades Ariad Pharmaceuticals to Underperform, Lowers PT as Launch Metrics are Still Weak

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In a report published Thursday, Credit Suisse analyst Jason Kantor downgraded the rating on
Ariad PharmaceuticalsARIA
from Neutral to Underperform, and lowered the price target from $8.00 to $6.00. In the report, Credit Suisse noted, “We believe that Iclusig will likely remain the last option for CML patients who have specific resistant mutations or fail other therapies. Near-term US sales will benefit from the implementation of the new pricing strategy that doubled the 30 mg price. However, we think this will likely be short-lived and sales will face a drop in H2:15 when ARIA moves to true flat pricing. We are downgrading to Underperform and reducing our TP to $6 from $8. Model changes increase our 2015 EPS estimates and decrease our 2016 EPS estimate.” Ariad Pharmaceuticals closed on Wednesday at $7.02.
Posted In: Analyst ColorDowngradesAnalyst RatingsCredit SuisseJason Kantor
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