Ariad Pharmaceuticals Inc fka ARIA

[Au-530]

Ph3 Ridaforolimus Data for Sarcoma in 1Q11, Jefferies Raises Price Target on ARIAD Pharmaceuticals (ARIA)
January 5, 2011 8:52 AM EST

Jefferies is keeping their Buy rating on ARIAD Pharmaceuticals (NASDAQ: ARIA) as the company's partner, Merck (NYSE: MRK), is going to report their Phase 3 data for ridaforolimus in 1Q11, which experts view has a ~60% probability of success. If successful the firm is predicting a ~$3/sh upside to current valuation and this is done by assigning a 90% probability to their ~$500M WW peak sales estimate in sarcoma in 2020 and 70% probability to their ~$650M in WW peak sales in endometrial cancer in 2020, with 20% royalty on total sales to ARIA, along with $65 million in potential regulatory milestones from Merck. Jefferies is raising their price target on the company to $8 from $6.

For more ratings news on ARIAD Pharmaceuticals click here and for the rating history of ARIAD Pharmaceuticals click here.

Shares of ARIAD Pharmaceuticals closed at $5.10 yesterday, with a 52 week range of $1.79-$4.49.


http://www.streetinsider.com/Analyst+Comments/Ph3+Ridaforolimus+Data+for+Sarcoma+in+1Q11%2C+Jefferies+Raises+Price+Target+on+ARIAD+Pharmaceuticals+%28ARIA%29/6197095.html