Seeking Alpha

Ariad +13% as BMO upgrades, assets likely to attract M&A interest

  • Ariad Pharmaceuticals (ARIA +13.1%) is trading near the best levels of the session following an intraday upgrade from BMO Capital's Jim Birchenough, who raised his rating to Outperform from Market Perform with a $14 price target (from $8).
  • The analyst sees significant value in the company's assets and he believes it will attract interest from large pharmaceutical companies.
  • The recent stock advance is tied to a Daily Mail report about a possible takeover; Ariad acknowledged to BMO that all options, including partnerships and M&A, are on the table.
Comments (18)
  • LYogi
    , contributor
    Comments (1983) | Send Message
     
    all eyes of the market seem to be on this stock the last two days.....will be an interesting outcome!
    24 Jan, 12:26 PM Reply Like
  • poolguy123
    , contributor
    Comments (181) | Send Message
     
    what is your opinions about the possible takeover by another major pharmaceuticals company which reportedly was rumoured to be Eli Lily,perhaps a few others might also jump into the fray and bidding war might just push the prices higher. What is your target price for now? It was a beleaguered and defeated company just a few months ago in 2013, and was just hoping to see several catalytic surprise elements which always has been the case for the biotech investment sector.Intercept pharma shocked plenty of people with its 500% 2 days gain, chelsea did it manageably with intraday gains of about 100%+, what could be the potential share price for ARIAD? I am guessing about $20-30 in the next few weeks, if everything happens very quickly and the subtle hints we get through the news feed and daily bulletin boards, insider information and other somewhat credible market information sources could add to momentum and frenzy when the real thing arrives.
    24 Jan, 01:31 PM Reply Like
  • tennis44
    , contributor
    Comments (42) | Send Message
     
    Aria will surpass ,strong interest by drug cos, and real value. A big winner!
    24 Jan, 12:36 PM Reply Like
  • tsiwen
    , contributor
    Comments (92) | Send Message
     
    Most of this quick run up is short covering; future earnings justify max $7-8 price. I'd be happy to sell @ $14.
    24 Jan, 01:01 PM Reply Like
  • LYogi
    , contributor
    Comments (1983) | Send Message
     
    but there is the rumour of the buyout to take into consideration.
    24 Jan, 01:24 PM Reply Like
  • co_byrne09
    , contributor
    Comments (5) | Send Message
     
    HUH? future earnings justify 7-8? Im not going to waste my time here with the math. But try again, and factor in potential AP2116 which has a much broader market (lung cancer). Comes to about $50 share
    26 Jan, 08:50 AM Reply Like
  • Flog
    , contributor
    Comments (203) | Send Message
     
    @co_byrne09
    $50.00 would be great. Would give ARIA close to $9 billion market cap.
    If social websites can be worth $30 billion to over $100 billion, why can't a Life Saving drug not be worth in the 10"s of billions dollars!
    Long Aria
    26 Jan, 12:58 PM Reply Like
  • pat walsh
    , contributor
    Comments (209) | Send Message
     
    ARIA=man on a honeymoon.
    24 Jan, 01:12 PM Reply Like
  • Flog
    , contributor
    Comments (203) | Send Message
     
    Usually Mondays are great for M&A's! Hoping for great news next week! Long ARIA!
    24 Jan, 04:25 PM Reply Like
  • NaderN33
    , contributor
    Comments (3) | Send Message
     
    I bid this buy discussion of buying ARIA for $20/share happen before Oct. 2013 and its not valid any more after the recent problems with ARIA. If there is any offer now, it can't be as high, not even half high. I would sell in the recent run if I own any. Why would you pay that much for medication that have black label/warning. Can somebody prove me wrong and know better.
    24 Jan, 04:55 PM Reply Like
  • Kingkang
    , contributor
    Comments (138) | Send Message
     
    Alot of oncology products have black box warnings. It's really not that big of a deal for specialty products. For typical, primary care products, yes it would be but not in this case.
    24 Jan, 05:21 PM Reply Like
  • Avoc
    , contributor
    Comments (17) | Send Message
     
    Well, when the only other options is death, I think I'd run the risk of using the medication.
    25 Jan, 07:42 PM Reply Like
  • co_byrne09
    , contributor
    Comments (5) | Send Message
     
    You must not know anything about the product. When patients have leukemia, this is far and above their best choice. Yes, it does come with cardiac issues, but who wouldn't risk a blood clot for certain death. They are learning how to mitigate the heart issues while still saving lives. And it's not the patients that pay for the medicine, it is the insurance companies.
    26 Jan, 08:50 AM Reply Like
  • NaderN33
    , contributor
    Comments (3) | Send Message
     
    Just saying what make sense and thinking logically
    24 Jan, 04:56 PM Reply Like
  • Flog
    , contributor
    Comments (203) | Send Message
     
    @naderN33
    Viagra and Cialis come with heart warning labels. Most drugs come with warning labels.
    ARIA will save lives in the long run. This stock will be back in the $20's soon.
    24 Jan, 07:18 PM Reply Like
  • steamer15
    , contributor
    Comment (1) | Send Message
     
    I bought at 2.27. I'd be very happy to sell half my shares at $15.00. What a great ride this has been. Also hoping for great news next week!
    26 Jan, 08:49 AM Reply Like
  • steve wide
    , contributor
    Comments (2) | Send Message
     
    buy Ariad Eli?
    26 Jan, 08:50 AM Reply Like
  • bigrac85
    , contributor
    Comment (1) | Send Message
     
    dont forget how much the CEO has of his own money tied up in the stock. he bought up several million dollars worth a few years back and has NOT sold , even when the stock was at his peek. Harvey Berger sees the bigger picture of this company's potential and so should we. LONG on Aria
    27 Jan, 11:47 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|