Quick Win by the Algorithm: ARIA

Quick Win by the Algorithm

Ariad Pharmaceutical Inc (ARIA)

On July 22st, 2016, the I Know First algorithm gave a bullish signal of 37.37 for the ticker ARIA with a predictability indicator of 0.1. In accordance with the algorithm’s prediction, ARIA experienced a Quick Win by the Algorithm of a 19.17% increase in stock price in only 7 days.

Quick Win by the Algorithm

Ariad Pharmaceutical Inc. works in oncology and engages in the discovery, development, and commercialization of drugs for cancer patients in the United States and internationally. It currently markets Iclusig, a $149,000 therapy for the treatment of chronic myeloid leukemia and Philadelphia chromosome positive acute lymphoblastic leukemia, two rare blood and bone marrow diseases.

I Know First has been following ARIA closely since mid-January when the algorithm accurately predicted that the stock would increase. The algortihm was right and ARIA increased of 19.17% from July 22st to 29th July.

 

Quick Win by the Algorithm

This growth can be attributed to the fact that Ariad licensed Iclusig in Europe. Indeed, Leukemia drug, Iclusig, is the company’s sole marketed product. ARIAD expects Iclusig product and royalty revenues of $170 million – $180 million in 2016. Sales should be driven by continued demand and new patient additions and launch in additional territories. After Ariad announced that it licensed European rights to Iclusig to Incyte, it is clear that the market has a favorable opinion of Iclusig. Ariad’s decision to license the drug outside of the United States might be a very smart decision.  As a result of their recent agreement, Ariad will also share part of the clinical trial costs with Incyte. Having the drug on the market by Incyte will help to generate revenue for Ariad, and expanding the label could help to increase the intent to treat population from the drug. This will create a large revenue stream for Ariad.