ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today reported financial results for the third quarter of 2013, including revenue from Iclusig ® (ponatinib). The Company also announced actions it is taking to reduce cash used in operations over the next two years and to better align its resources to areas of narrowed strategic focus. The plan includes a previously disclosed reduction of approximately 40 percent of the Company’s U.S. workforce.
“Following recent corporate developments, we have taken swift action to significantly reduce operating expenses and extend our cash runway,” said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. “Additionally, we have refocused and reprioritized our investments around near-term, shareholder-value creating activities. Taken together, we have extended our cash runway to mid-2015, while supporting the ongoing European commercialization of Iclusig, further development of Iclusig in patients with refractory Philadelphia-chromosome positive (Ph+) leukemias, advancement of AP26113 into a pivotal trial, and designation of our next clinical development candidate.”
2013 Third Quarter Financial Results
Product RevenuesNet sales of Iclusig were $16.7 million for the quarter ended September 30, 2013. We currently use the sell-through method of accounting for recognition of product revenues. As of September 30, 2013, we had deferred revenue of $4.9 million in the U.S., representing Iclusig inventory at specialty pharmacies and specialty distributors, which had not yet shipped to the end customer. In addition, in the quarter ended September 30, 2013, we shipped $2.9 million of Iclusig to patients in France through Autorisation Temporaire d’Utilisation (ATU), or Temporary Authorization for Use. Shipments under the French ATU will be recorded as revenue when the list price in France is determined, which we anticipate will now occur in the first quarter of 2014. Net Loss Net loss for the quarter ended September 30, 2013 was $66.3 million, or $0.36 per share, compared to net loss of $53.2 million, or $0.32 per share, for the same period in 2012.