Company

Bank

Analyst

Coverage

Opinion

Wk chg

2/28 cls

Ariad Pharmaceuticals Inc. (NASDAQ:ARIA)

Maxim Group

Echo He

Upgrade

Buy (from hold)

-2%

$8.69

Echo He upgraded and set an $11 target based on better-than-expected European sales of leukemia drug Iclusig ponatinib. Ariad reported $2.9M in 4Q13 EU Iclusig sales, plus an additional $12.9M deferred revenue for sales in France, which she said suggest actual EU sales were likely more than $7M. She raised her peak sales estimate in Europe by 60% to $330M and maintained her peak U.S. sales estimate of about $250M.

Clovis Oncology Inc. (NASDAQ:CLVS)

Leerink Partners

Marko Kozul

Price target

Outperform

6%

$79.62

Kozul raised his target to $110 from $104 after adding risk-adjusted revenues for rucaparib to treat pancreatic cancer to his model. On a conference call to discuss 2013 earnings, Clovis said that two pancreatic cancer patients had "striking partial responses" and that it plans to begin a Phase II trial in the indication next quarter. Kozul estimates a 20% probability of success for the product. Clovis has rights to the oral inhibitor of poly(ADP-ribose) polymerase-1 (PARP-1) and PARP-2 from Pfizer Inc. (NYSE:PFE), which received rights from Cancer Research UK.