Tomahawk, WI 11/25/2013 (BasicsMedia) – In the recent past a lot of news about Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) have not been very encouraging. The company’s stock suffered on the browsers at the announcement of FDA over the safety issues of lclusig, a label intended for leukemia. The Administration argued that the drug caused blood clotting, stroke and heart problems. Consequently, the sale of the drug has been suspended in the U.S. However, some encouraging reports came from Europe where the drug received approval for continued sale in the region. As a result, the ticker traded strongly up to the close of the previous week.

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) working closely with FDA

While FDA has reservations about lclusig, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is working with the agency to ensure that the drug is allowed for use in conditions where it may not pose the said health risks. Also, the drug maker is seeking further to be allowed to address the said problems with the drug so that it can get back on sales in much safer form that meets the FDA requirement. Expanding the mandate of the drug is also in the cards for ARIA.

The U.S. market is very key for Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) as the drug is promising solutions in an area where a lot of patients and troubled. In order to meet its revenue targets, ARIA requires the opening of the U.S. for this drug.

ARIA seeking to Increase cash reserve

As talks with FDA continue over the case of lclusig, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) has increased its cost reduction efforts and cash reserve boost. The company is now seeking to reduce its operating cost in 2013 to about $240 and $245 million. Initially, the drug maker had projected spending between $245 and $255 million in operations.

In boosting its cash reserve, the company is seeking to solidify its financial base for further big capital investment and return of substantial value to the investors. This is very important especially now that investor confidence has been faltering due to problems of lclusig in the U.S. drug market.

Tied to operating expenses reduction is the trimming of workforce by about 40% to facilitate this financial saving plan. ARIA is expected to continue in the financial tight-belt condition going into 2015.

Negotiating a deal with FDA to allow conditional use of lclusig and additional study on the drug to expand its scope would be very vital in bolstering the performance of the drug company. In recent times, the company has reported losses which have succeeded more in driving away investors. In the quarter ending Sept. 30, the company’s losses grew from $53.2 million in the same during the year before to $66.3 million.

ARIA extending commercialization of lclusig in Europe

Europe has approved the continued sale of lclusig, and now ARIA is eying to expand the commercialization of the drug to more countries in the region. This should help the company to expand its revenue collection and offset the setback from the U.S. market where the ban on sale of the drug still remains. The landscape would change drastically in favor of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is its efforts of expand the drug’s scope to treat cancer, tumor, gastrointestinal stromal in addition to leukemia goes through.

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