Ariad Pharmaceuticals (ARIA) jumped 30% in early morning trading after the announcement that one of its drugs for patients with leukemia was given a thumbs up by two oversight groups.
It has since fallen some 10% since its spike, however.
ARIA stock jumped with news of a positive opinion by the Committee for Human Medicinal Products (CHMP) of the European Medicines Agency (EMA) on the continued availability of Iclusig (ponatinib) in the EU for use in patients.
In a press release ARIA stated that “EMA plans to conduct a further review of the benefits and risks of Iclusig and may make additional recommendations on how Iclusig should be used.”
“We have been working closely with the EMA to provide updated clinical-trial data on patients treated with Iclusig,” said Jonathan E. Dickinson, general manager, ARIAD Pharmaceuticals (Europe). “The conclusions reached by the CHMP, which were announced today, confirm a positive benefit-risk assessment for Iclusig after considering the most recent safety information.”
ARIA stock is still down more than 80% year to date, however, and the news may not keep ARIA stock afloat for long. Its earnings report earlier this month did not give it the boost investors were hoping for, despite some good news: For Q3 in 2013, the company reported net income of $5.5 million, on revenues of $32.8 million compared to a net loss of $5.5 million, on revenues of $12.5 million the same period a year ago.
Recently the stock was listed as being oversold.
ARIAD Pharmaceuticals, based in Cambridge, Massachusetts and Switzerland, is a global oncology company focused on breakthrough medicines for cancer patients.