23.01.2014 16:13 AADruckenSenden Why Ariad Pharmaceuticals (ARIA) Is Up Today Bewerten (0)
Ariad Pharmaceuticals zu myNews hinzufügen Was ist das?
Quelle: TheStreet.com
NEW YORK (TheStreet) -- Ariad Pharmaceuticals was rising 8.64% to $7.29 on Thursday after a report said three international pharmaceutical groups are interested in purchasing a controlling stake in the company.The Daily Mail reported that multiple industry majors have been circling Ariad since the Food and Drug Administration green-lit Ariad's Ponatinib, a leukemia treatment. The report cited rumors that three international pharma groups, including Eli Lilly , have made "friendly approaches" to Ariad and are prepared to offer as much as $20 a share to gain control. Other companies mentioned in the report include GlaxoSmithKline and Shire.Ariad recently announced that Ponatinib is commercially available to adult patients with refractory chronic myeloid leukemia.TheStreet Ratings team rates ARIAD PHARMACEUTICALS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about its recommendation: "We rate ARIAD PHARMACEUTICALS INC (ARIA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: ARIAD PHARMACEUTICALS INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ARIAD PHARMACEUTICALS INC reported poor results of -$1.34 versus -$0.93 in the prior year. For the next year, the market is expecting a contraction of 16.6% in earnings (-$1.56 versus -$1.34). The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has decreased by 24.7% when compared to the same quarter one year ago, dropping from -$53.21 million to -$66.34 million. Net operating cash flow has decreased to -$56.17 million or 26.41% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. Looking at the price performance of ARIA's shares over the past 12 months, there is not much good news to report: the stock is down 66.64%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ARIAD PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: ARIA Ratings Report Click to view a price quote on ARIA. Click to research the Drugs industry.
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