William Blair Remains Positive On Ariad On The Heels Of Favorable PRAC Review For Iclusig

In a research report issued today, William Blair analyst Y Katherine Xu maintained an Outperform rating on Ariad Pharmaceuticals (NASDAQ:ARIA) with a $12 price target. The report follows today’s news that the Pharmacovigilance Risk Assessment Committee (PRAC) of the European Medicines Agency has concluded its review of Iclusig under the Article 20 referral procedure. PRAC recommended that Iclusig continue to be used in Europe in accordance with its already approved indications.

Xu noted, “We view this development as positive for the Ariad stock, as Ariad can now resume pricing and reimbursement discussions with the major EU countries in which Iclusig is not currently marketed.” The analyst continued, “We see Iclusig becoming a strong late 2014 and 2015 growth story due to multiple factors synergizing to drive growth over the next 12-18 months; our thesis that Iclusig is an important option for relapsed/refractory chronic myelogenous leukemia (CML) patients and our peak sales estimate of $720 million remain unchanged.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Y Katherine Xu has a total average return of -5.4% and a 33.3% success rate. Xu has a -53.7% average return when recommending ARIA, and is ranked #2949 out of 3335 analysts.

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