ARIAD Pharmaceuticals, Inc. (NASDAQ:ARIA) announced that the United States District Court for the District of Massachusetts dismissed the shareholder class action lawsuit filed in late 2013 against the Company and certain of its officers, directors and underwriters in connection with the events leading up to the temporary suspension of the marketing and commercial distribution of Iclusig® (ponatinib) on October 31, 2013, and subsequent re-launch in January 2014 based on revised U.S. prescribing information and a risk evaluation and mitigation strategy.
The suit alleged that certain of the Company defendants made a series of false and misleading statements regarding the safety, efficacy and commercial prospects of Iclusig. The Court granted the Company’s motion to dismiss the lawsuit, concluding that the plaintiffs failed to establish that any such statements violated the Company’s disclosure obligations as asserted in the complaint.
“We are pleased that for the second time in as many weeks, the Court has granted our motion to dismiss what we believed from the outset was another meritless lawsuit,” said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. “Our corporate values of integrity and mutual respect are always at the forefront as we continue to focus on executing our plan for sustained revenue growth and operational excellence, leading to anticipated profitability in 2018.” (Original Source)
Shares of Ariad Pharmaceuticals closed yesterday at $8.38 . ARIA has a 1-year high of $9.19 and a 1-year low of $4.90. The stock's 50-day moving average is $7.80 and it's 200-day moving average is $6.62.
On the ratings front, Ariad has been the subject of a number of recent research reports. In a report issued on March 19, BMO analyst Jim Birchenough reiterated a Buy rating on ARIA, with a price target of $14, which represents a potential upside of 67.1% from where the stock is currently trading. Separately, on February 23, H.C. Wainwright's Reni Benjamin reiterated a Buy rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jim Birchenough and Reni Benjamin have a total average return of 53.0% and 7.9% respectively. Birchenough has a success rate of 74.7% and is ranked #7 out of 3546 analysts while Benjamin has a success rate of 43.4% and is ranked #771.
In total, 2 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $8.38 which is 8.9% above where the stock closed yesterday.
ARIAD Pharmaceuticals Inc is an oncology company. The Company is engaged in transforming the lives of cancer patients with breakthrough medicines. It commercializes & develops products and product candidates including Iclusig, Brigatinib, and AP32788.