Ariad Pharmaceuticals (NASDAQ:ARIA) posts a healthy third quarter


The American biopharmaceutical company Ariad Pharmaceuticals (NASDAQ:ARIA) became one of the rare pharma companies that posted profits leading to a 19 percent surge in its finances in the month of November. Ariad Pharmaceuticals (NASDAQ:ARIA) deals with developing drugs for cancer patients. The third quarter for the company proved to be market blazing and with its drug approved in the overseas market, Ariad Pharmaceuticals (NASDAQ:ARIA) has set a benchmark for the pharmaceutical companies.

The cancer drug called Iclusig was approved by the Therapeutic Goods Administration which is equal to the Food and Drug administration in Australia. The application for the drug was submitted in the third quarter of 2013 and the drug is expected to hit the market next year. Iclusig deals with chronic myeloid leukemia that afflicts 330 Australians each year. For a drug to be approved overseas is quite an achievement for that particular pharmaceutical company.

Ariad Pharmaceuticals (NASDAQ:ARIA) became one of the rare biopharmaceutical companies to post a healthy third quarter, leading to a boost in its total revenue by 21 percent. Ariad Pharmaceuticals (NASDAQ:ARIA) bagged 14.7 million from the third quarter. The revenue came from the domestic sales made by Iclusig. Ariad Pharmaceuticals (NASDAQ:ARIA) is closing in on its net loss which has come down to 50 million from 66.3 million dollars. Wall Street expected more sales from the company but it also expected the company to get stuck deep in losses. Luckily, Ariad Pharmaceuticals (NASDAQ:ARIA) is floating safe and sound.

Ariad Pharmaceuticals (NASDAQ:ARIA) is having a good month. The flagship drug Iclusig has been approved in Australia and is ready to bag some patents during the course of 12 months. But the drug has side effects. It’s an effective drug, but the side effects are off putting. In the future it’s really difficult to see Iclusig going beyond being used as a substitute drug or last choice drug.

Ariad Pharmaceuticals (NASDAQ:ARIA) will also have problems in the future regarding its portfolio. Its whole portfolio revolves around one drug Iclusig. Iclusig is being tested in many countries. Like we have mentioned, Iclusig is a drug that can only be used as a third, fourth choice. Wall Street has already stated that in 3 years Ariad Pharmaceuticals (NASDAQ:ARIA) will find it hard to post a single penny as profit. Keeping the future in mind, Ariad Pharmaceuticals (NASDAQ:ARIA) should devise a strategy and expand its portfolio rather than working on a single drug. It’s always a risk if you’re relying upon a single product or drug.

Ariad Pharmaceuticals (NASDAQ:ARIA) should map out some long term plans and course of action in order to stay afloat. For good quarters, Ariad Pharmaceuticals (NASDAQ:ARIA) would require making new therapies and Iclusig doesn’t look like the one that can last for a long time. The pharmaceutical business is very shaky and to sustain one’s profit its really a matter of producing drugs one after another. Ariad Pharmaceuticals (NASDAQ:ARIA)   should keep this in mind.