Seeking Alpha

Ariad trades lower after AP26113 news despite Oppenheimer upgrade

  • AP26113 is "a much stronger contender than Novartis' (NVS -0.3%) LDK378, given the cleaner safety profile, and [we] anticipate meaningful uptake in the crizotinib-refractory setting," Oppenheimer's David Ferreiro says, referring to Ariad's (ARIA -3.6%) tyrosine kinase inhibitor and its prospects in ALK+ non-small cell lung cancer.
  • Ferreiro is also upbeat on Iclusig in CML, saying he believes the drug "will acheive significant adoption in the first-line setting, despite Gleevec genericization."
  • ARIA upgraded to Outperform from Perform, although the target is raised just $1 to $24 — remember, Ferreiro thinks positive AP26113 data is already factored into the stock's price.
  • Nevertheless, the stock is weak at the open. It's possible investors are reacting negatively to the following line in the company's ESMO PR: "In three out of 26 patients receiving 180 mg per day of AP26113 in the Phase 2 portion of the trial, early-onset pulmonary symptoms were observed after the first dose of AP26113."
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Comments (1)
  • Fund_My_Aliyah
    , contributor
    Comments (4) | Send Message
     
    It might finish the day up, closing the gap.

     

    The pulmonary issue is no big deal. It can be solved by dosing the drug; but the efficient results on brain metastases are jaw dropping and downright exciting !

     

    Iclusig is gaining sales momentum every months, and now we have a confirmed first class drug potential in the pipeline...

     

    I say a price target of $30 for 2014 is actually quite conservative.
    30 Sep 2013, 09:54 AM Reply Like
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