Ariad up on takeout rumors
Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) was up $0.81 (12%) to $7.52 on Thursday following rumors that Eli Lilly and Co. (NYSE:LLY); Shire plc (LSE:SHP; NASDAQ:SHPG); and GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) had made "friendly approaches" to the company. According to the Daily Mail, the companies are prepared to offer up to $20 per share in cash for Ariad. The price would value the company at $3.7 billion based on 185.7 million shares outstanding on Oct. 31, 2013. GSK said it does not comment on speculation. The other companies could not be reached.
Separately, Germany's Federal Joint Committee (G-BA) said in a final benefit assessment that Orphan drug Iclusig ponatinib from Ariad has an "unquantifiable" additional benefit to treat chronic myelogenous leukemia (CML) and Philadelphia-chromosome positive (Ph+) acute lymphoblastic leukemia (ALL). Under drug pricing law AMNOG, the additional benefit of Orphan products is regarded as having been demonstrated by marketing authorization, though G-BA still determines the extent of the additional benefit. Ariad will now negotiate a price with Germany's Statutory Health Insurance Funds Association (GKV-Spitzenverband). ...