Ariad
The last layoff news of the day came from a notably smaller company in Ariad Pharmaceuticals. Ariad received a crushing blow last week when the Food and Drug Administration requested that it temporarily halt sales of leukemia drug Iclusig. A post-commercialization follow up study revealed a disproportionate occurrence of blood clots in treated patients. That sent shares tumbling yet again, contributing to a 88% plunge in October.
Ariad will now be forced to salvage a crippled pipeline, all while coping with the sudden loss of a critical revenue source. Iclusig is being tested in seven of Ariad's eight ongoing phase 2 clinical trials. The fate of those trials is in question, and the company's earnings report on Tuesday should paint a better picture.
What we do know is that Ariad has to start cutting costs if it wants to survive. The first step in doing that is to slash 40% of its workforce across all major departments. That should save Ariad $26 million in 2014. The company did have $332 million in cash and only $7 million in long-term debt at the end of last quarter, but with its real growth driver sitting on the bench, it's make-or-break time for Ariad.
The last layoff news of the day came from a notably smaller company in Ariad Pharmaceuticals. Ariad received a crushing blow last week when the Food and Drug Administration requested that it temporarily halt sales of leukemia drug Iclusig. A post-commercialization follow up study revealed a disproportionate occurrence of blood clots in treated patients. That sent shares tumbling yet again, contributing to a 88% plunge in October.
Ariad will now be forced to salvage a crippled pipeline, all while coping with the sudden loss of a critical revenue source. Iclusig is being tested in seven of Ariad's eight ongoing phase 2 clinical trials. The fate of those trials is in question, and the company's earnings report on Tuesday should paint a better picture.
What we do know is that Ariad has to start cutting costs if it wants to survive. The first step in doing that is to slash 40% of its workforce across all major departments. That should save Ariad $26 million in 2014. The company did have $332 million in cash and only $7 million in long-term debt at the end of last quarter, but with its real growth driver sitting on the bench, it's make-or-break time for Ariad.