Ariad Upgraded, Xenoport Drug Delayed: BioBuzz

CAMBRIDGE, Mass. (TheStreet) -- Shares of Ariad Pharmaceuticals(ARIA Quote) may see some action Monday after a JPMorgan analyst upgraded the stock to overweight from neutral

Cory Kasimov boosted his Ariad rating Monday morning based on two upcoming catalysts from the company's drug pipeline: 1) Results from a phase I, proof of concept study of AP24534 chronic myeloid leukemia expected at the American Society of Hematology meeting in early December; and 2) the second interim analysis from a pivotal phase III study of ridaforolimus in sarcoma in the first quarter of next year.

"All in, we believe ARIA shares are attractive given an enterprise value of [less than] $200 million despite having an oncology asset (partnered with Merck) in a pivotal program, and a second wholly owned asset with exciting, albeit early, data that is poised to move into pivotal development in 2010," writes Kasimov. He has a $6 price target on the stock.

Aria shares closed Friday at $2.17.

FDA Delays Approval Decision on Xenoport Drug

The Food and Drug Administration has delayed by three months an approval decision on XP'512 for restless leg syndrome. GlaxoSmithKline(GSK Quote) and Xenoport(XNPT Quote) are the drug's developers.

In a statement late Friday, the two companies says FDA is taking another three months to review a risk management plan for XP'512, which will push back the approval decision date to Feb. 9, 2010 from today.

-- Reported by Adam Feuerstein in Boston