Ariad adopts poison pill

Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) on Friday announced a shareholder rights plan the company said is aimed at preserving its "substantial tax assets" and is not intended to deter an acquisition. The move comes a day after the company fell $1.76 (43%) to $2.20 after announcing it temporarily suspended marketing and distribution of leukemia drug Iclusig ponatinib due to the risk of arterial thrombotic events. As of December 31, 2012, Ariad had tax assets of $307.7 million and research tax credits of $17.8 million, which could be used to offset future taxable income. According to SEC filings, hedge fund Sarissa Capital Management -- which Alex Denner founded last year after he stepped down as managing director of entities associated with Carl Icahn -- acquired a 6.2% stake in Ariad over Oct. 9-22 (see BioCentury Extra, Oct. 31).

Separately, Germany's Institute for Quality and Efficiency in Health Care (IQWiG) agreed with Ariad's estimates that Iclusig will cost the German public health insurance funds (GKV) more than EUR 50 million ($67.8 million) per year. Under drug pricing law AMNOG, IQWiG does not conduct a formal benefit assessment of an Orphan product until its sales breach the EUR 50 million annual sales threshold, though the Federal Joint Committee (G-BA) still determines the extent of the drug's benefit. G-BA's final assessment is expected in late January 2014. ...