J.P. Morgan’s healthcare analyst Cory Kasimov came out today with a few insights on Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), following this morning’s fourth-quarter update, during which the company largely reviewed the 2015 strategic objectives. As for the financial position, the company reported revenues of $67 million, versus the consensus estimate of $47 million. Additionally, the company delivered a loss of $0.03 a share, less than the $0.12 consensus. ARIA ended 4Q with $353M in cash, which Kasimov believes is sufficient to support operations for the foreseeable future.
The analyst rates the stock a Neutral with an $8 price target, which implies an upside of 6.7% from current levels.
Kasimov wrote, “Underlying commercial metrics of Iclusig continue to improve, with management highlighting 2015 as a year of execution with continued expansion of the Iclusig prescriber base in the US, additional EU country rollout, securing a partnership for ‘113 to realize the full value of the product as soon as possible, and bringing its next oncology candidate into the clinic. Of note, getting the three new Iclusig trials up and running this year will be important, in our view, with data from the dosing trial (expected at the end 2016) key to answer Q’s around dosing/efficacy.”
Bottom line, “With a ~50% penetration of the on-label market, we believe label expansion/growing the addressable market for Iclusig is critical, and the planned studies in earlier lines of therapy plus the dose-ranging trial could potentially provide more clarity/confidence in the drug’s ultimate market opportunity.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 15.1% and a 60.3% success rate. Kasimov has a 5.6% average return when recommending ARIA, and is ranked #376 out of 3479 analysts.