NEW YORK (TheStreet) -- Shares of Ariad Pharmaceuticals (ARIA) were sliding 6.94% to $9.66 in mid-morning trading on Monday as the stock's rating was reduced to "underweight" from "neutral" at JPMorgan, according to the Fly.
The firm also trimmed its price target to $7 from $8 on shares of the Cambridge, MA-based biopharmaceutical company, saying there is "more volatility risk than fundamental upside appreciation."
This comes after Senator Bernie Sanders (I-VT) and Representative Elijah Cummings (D-MD) sent a letter to the company last week calling price increases for Ariad's Iclusig leukemia drug "staggering."
The letter cited TheStreet's Adam Feuerstein, who noted that Ariad raised Iclusig's price to $199,000 per year in 2016 from $115,000 per year in late 2012.
JPMorgan said that commentary on Ariad's drug pricing could lead to incremental downside risk.
The firm added that it does not anticipate Ariad reaching a resolution on pricing concerns in the near future, the Fly reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
Among the areas we feel are negative, one of the most important has been weak operating cash flow.
You can view the full analysis from the report here: ARIA