3. Ariad Pharmaceuticals ( ARIA) Company Profile: Ariad Pharmaceuticals develops cancer treatments by regulating cell signaling with small molecules. Share Price: $4.57 (Dec. 17) 2010 Stock Performance: 100% Analyst Consensus: Nine researchers say investors should buy shares of Ariad Pharmaceuticals. There is one analyst with a "hold" rating on Ariad. No firm has a "sell" rating on the stock. Bullish Case: Brean Murray Carret analyst Ling Wing reiterated a "buy" rating on Ariad in a Dec. 6 research report, based on expectations of Phase III trial data for ridaforolimus, which is Ariad's drug candidate to treat patients with advanced sarcomas. "Near term, we expect partner Merck ( MRK) to report the final analysis from the Phase III trial of ridaforolimus in advanced sarcoma patients in early first quarter of 2011 ," Wang wrote. "Although we have reservations in the outcome of this trial, we view the risk/reward at current levels to be favorable, especially with Merck taking full financial responsibility of the program."