Credit Suisse Expects New Pricing to Boost Sales for Ariad Pharmaceuticals

In a report published Thursday, Credit Suisse analyst Jason Kantor reiterated a Neutral rating and $8.00 price target on Ariad Pharmaceuticals ARIA. In the report, Credit Suisse noted, “Iclusig sales increased modestly in the US and EU over last quarter. However, we expect that future US sales will significantly increase largely due to the implementation of the new pricing strategy that doubled the 30 mg price. Iclusig Q3:14 sales were $14.5M ($10.5M in US) vs consensus of $21.0M and CS est. of $17.9M. Model changes increase our forward EPS estimates.” Ariad Pharmaceuticals closed on Wednesday at $5.69.