Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA)
Ariad Pharmaceuticals is down slightly today following the release of their first quarter earnings report. So, we’ll look into the report to figure out why the stock is falling, talk about what the company does, and discuss what we can expect to see from the stock moving forward.
ARIA Misses Earnings Expectations
Unfortunately, ARIA wasn’t able to meet expectations for the first quarter. Here’s what we saw from earnings…
- EPS – In the first quarter, Ariad produced a loss of $0.28 per share; 1 cent short of analyst expectations at $0.27.
- Top Line Revenue – Top line revenue proved to be a miss as well. While analysts expected the company to generate $26 million in the quarter, the figure came in at only $24 million.
What Investors Should Know About Ariad Pharmaceuticals
Ariad Pharmaceuticals is a small-cap biotech company that focuses on the discovery, development, and commercialization of breakthrough cancer treatments. While there are several candidates in the companies pipeline, they currently only have one product that’s been approved by the FDA. That product is called Iclusig. Because the company only has the one approved medication, their earnings are heavily dependent on how the treatment performs. With that said, we haven’t seen the tip of the iceburg with regard to this company. Two very important things to keep in mind for future developments are…
- Iclusig – Iclusig’s performance in the first quarter was positive overall. Not to mention the company is currently on track to start three separate studies on Iclusig throughout the rest of 2015 that could expand the treatment’s uses.
- Brigatinib – Ariad also has a leading pipeline candidate that is moving into the next phase. The treatment, which is designed to treat lung cancer will move into a phase II study; completing patient enrollment in the third quarter of the year. Regulatory filing for Brigatinib is expected to happen in 2016.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see great things from Ariad Pharmaceuticals in the long run. Considering that this is a small-cap biotech stock, we are likely to see volatility along the way. Nonetheless, Iclusig is doing relatively well and I’m expecting ARIA to make waves with Brigatinib! All in all, things to be falling in line for the company; with the exception of the missed earnings of course. That said, I’d expect to see growth from the stock in the long run.
What Do You Think?
Where do you think ARIA is headed and why? Let us know in the comments below!