ariad pharmaceuticals inc (ARIA) Key Developments
Labaton Sucharow LLP Files Class Action Lawsuit on Behalf of Investors in Ariad Pharmaceuticals, Inc
Dec 3 13
Labaton Sucharow LLP filed a class action lawsuit on December 3, 2013 in the U.S. District Court for the District of Massachusetts. The lawsuit was filed on behalf of persons who purchased, otherwise acquired, or contracted to acquire securities of Ariad Pharmaceuticals Inc. between December 12, 2011 and October 8, 2013, inclusive. A lead plaintiff is a court-appointed representative for absent members of the Class, as defined below The complaint charges Ariad and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint alleges that Defendants made false and misleading statements and concealed material information relating to the Company's most advanced drug, ponatinib, trade-named Iclusig. Specifically, Defendants assured investors that Iclusig's side effects were easily managed and that data from clinical drug trials did not indicate increased risk of serious cardiovascular side effects, thereby artificially inflating the price of Ariad securities. The complaint alleges that, during the Class Period, Defendants concealed the following facts from the investing public: serious cardiovascular side effects such as arterial thrombotic events and strokes, some fatal, had occurred in patients treated with Iclusig at increasingly significant rates before and during the Class Period; the company's statements regarding the use, value, and prospects for the commercialization of Iclusig lacked a reasonable basis; and as a result, Defendants' statements regarding the safety and outlook for Iclusig and regarding the prospects of the Company were materially false and misleading at all relevant times. The plaintiff seeks to recover damages on behalf of persons who purchased, otherwise acquired, or contracted to acquire securities of Ariad during the Class Period. The plaintiff is represented by Labaton Sucharow LLP, which has extensive experience in prosecuting securities class actions.
Law Firm Johnson & Weaver, LLP Files Derivative Lawsuit on Behalf of ARIAD Pharmaceuticals, Inc
Nov 12 13
Johnson & Weaver, LLP filed a derivative lawsuit seeking to hold certain officers and directors of ARIAD Pharmaceuticals Inc. responsible for the damage they caused the company to suffer. Specifically, the complaint alleges that these individuals breached their fiduciary duties and violated other laws related to their representations about the safety and commercial viability of ARIAD's leukemia drug Iclusig. As a result, ARIAD's credibility and goodwill have been damaged, ARIAD's market capitalization has been substantially damaged, and ARIAD is the subject of a securities fraud class action and will likely incur substantial costs in investigating and litigating that action.
Ariad Pharmaceuticals Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Cash Flow Guidance for the Year 2013 and 2014
Nov 12 13
Ariad Pharmaceuticals Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company’s total revenue was $16.7 million compared with $0.085 million a year ago. Net loss was $66.3 million or $0.36 per basic and diluted share compared with $53.2 million or $0.32 per basic and diluted share a year ago.
For the nine months, the company's total revenue was $37.2 million compared with $0.48 million a year ago. Net loss was $199.99 million or $1.09 per basic and diluted share compared with $160.4 million or $0.98 per basic and diluted share a year ago. Net cash used in operating activities was $170.3 million compared with $112.6 million a year ago.
The company now anticipates cash used in operations in 2013 of $240 million to $245 million, compared to its previous range of $245 million to $255 million.
The company expects to realize a decrease in cash used in operations, comparing 2014 to 2013, of approximately 35%, inclusive of personnel-related restructuring charges of approximately $5 million, which the company expects to record in the fourth quarter of 2013.
Ariad Pharmaceuticals Inc. Announces Reduction in U.S. Workforce as Part of Broad Program to Reduce Operating Expenses
Nov 7 13
Ariad Pharmaceuticals Inc. announced that it is reducing approximately 40% of its staff positions in the United States following its decision to temporarily suspend the marketing and commercial distribution of Iclusig(R) (ponatinib) in the U.S. The reduction in U.S. staff includes positions in all major departments. This reduction in force is part of a broad program taken by ARIAD to significantly reduce its corporate operating expenses and extend its cash position. ARIAD will share details of this program when it reports third quarter financial results on November 12, 2013. ARIAD expects the workforce reduction to be completed by year-end and will yield pre-tax savings of approximately $26 million in 2014. Restructuring charges associated with these changes are expected to be approximately $5 million in the fourth quarter of 2013. There are no reductions in staff positions in Europe.
Ariad Pharmaceuticals Inc. - Special Call
Oct 31 13
To discuss on temporary suspension of the marketing and commercial distribution of Iclusig(R) (ponatinib) in the United States