NEW YORK (TheStreet) -- Ariad Pharmaceuticals (ARIA) shares are up 8.6% to $5.74 on Thursday after the company announced that its experimental lung cancer drug received a "breakthrough therapy" designation from the FDA.

A "breakthrough therapy designation" means that the FDA can fast track the review process for a drug that shows evidence of being an improvement of current treatments for patients with life-threatening diseases.

The company's AP26113 drug was shown to continue to be effective in treating patients with lung cancer after Pfizer's (PFE - Get Report) drug crizotinib, a lung cancer treatment already approved by the FDA, ceased to be effective with those patients.

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TheStreet Ratings team rates ARIAD PHARMACEUTICALS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ARIAD PHARMACEUTICALS INC (ARIA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

ARIA Chart ARIA data by YCharts

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