Ariad Loss in Line, Merck Talks Continue
(Ariad earnings story with updated trading information)
CAMBRIDGE, Mass. (
) --
Ariad Pharmaceuticals
(ARIA)
reported a fourth-quarter loss in line with an analyst estimate of 17 cents and revenues slightly below expectations -- between $2.1 million and $2.2 million in actual revenues, versus a street forecast of $2.3 million.
The net loss for the fourth quarter was $18 million, compared to $16.8 million in the fourth quarter of 2008, or a 24-cents-per-share loss.
Shares of Ariad were trading near flat on Tuesday morning.
Ariad won't be providing 2010 guidance until it reaches a final agreement with collaboration partner
Merck
(MRK) - Get Report
on budget and financing for ridaforolimus, an oral treatment for sarcomas.
In 2009, Ariad used $51.9 million in cash, compared to cash used in operations of $48.3 million for the same period in 2008.
Ariad hedged its bets on the Merck agreement in then earnings release.
CEO Harvey Berger, said, "We have made excellent progress in these negotiations and anticipate that a revised agreement will be finalized and executed in the second quarter of 2010. Although we cannot assure that such agreement will be reached, we have seen a strong commitment from Merck to bringing this process to fruition."
However, Ariad CFO Edward Fitzgerald added that Ariad was making a backup plan should talks with Merck breakdown. "We are also pursuing partnering opportunities for our other product candidates, which could provide up-front and milestone payments, as well as funding of development costs and other licensing possibilities. In the event that we are unable to revise the Merck agreement, we would seek to raise additional capital or pursue other strategic options."
Ariad expects to have complete results in the fourth quarter 2010 from its Phase 3 trials of ridaforolimus.
-- Reported by Eric Rosenbaum in New York.
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