Comments on Ariad by Barclays
We are maintaining our 1-OW rating on ARIA following release of 3Q09 results. While near-term focus remains on the phase III SUCCEED study in Sarcoma where we believe that prior mTOR inhibitor success suggests a likely benefit for ridaforolimus, we believe the potential intiation of a pivotal study for bcr-abl inhibitor AP-24534
in 2010 establishes ARIA as a company with two registration stage drugs in its arsenal.
􀂃 ARIA reported 3Q09 results this morning with a net loss of ($0.21) that was inline with ($0.18) Cons, and ARIA ended 3Q09 with $57.5M in cash.
􀂃 With most focus on Ridaforolimus and -534, ARIA confirmed timelines for SUCCEED 2nd interim analysis at end of 1Q10 with final PFS analysis at end of 3Q10, updated Phase II mBC data at SABCS on Dec 11, and enrollment completion in the Phase II endometrial CA study in 1H10. -534 POC Phase I data in advanced hematological cancers will be presented at ASH on Dec 7 with ARIA suggesting potential initiation of a Phase III study in 2010 contingent on discussion with regulatory agencies. ARIA suggested the Nilotinib and Dasatinib registration trials as benchmarks for its possible approach to a -534 registration study.
November 05, 2009

Target price $7