MannKind and Ariad Pharma Under Review: Biotech Companies Receive Drug Approvals
LONDON, February 22, 2013 /PRNewswire/ --
Biotech sector has a promising future. With the rise in occupational and lifestyle ailments, the demand for biotech products is expected to rise. Increased age expectancy is another major factor behind the growth of the sector. However, biotech companies work in an uncertain environment and the fortunes of a company may make or break with a single FDA decision. Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) recently received approval for its leukemia drug but failed to get EU nod for its bone tumor drug. MannKind Corporation (NASDAQ: MNKD), on the other hand, posted net quarterly loss. StockCall has released free charting and technical research on these two aforementioned companies. Register to read these reports at
Ariad Pharma Makes Secondary Offer
Ariad Pharmaceuticals got favored by Dan Loeb of Third Fund, a major hedge fund based out of New York. Dan upped his stake in the company by 85 percent in the previous quarter. Similarly, Eagle Asset Management, money management unit of Raymond James Financial also increased its stake in the biotech company. SAC Capital Advisors cut their stake in the company but the fund still holds 4.9 million shares of Ariad Pharmaceuticals. Hedge fund and institutional buying is generally good indicator of good future performance of the stock. Ariad Pharmaceuticals Inc. free technical report can be accessed by signing up at
Ariad recently received FDA approval for Ponatinib, its promising leukemia drug. Though, the company would be required to put warning on the label, still the drug holds good potential. Ariad's stock is up 8 percent so far this year, while it gained 43 percent in the past 52 weeks. However, the company faces some challenges too as its bone tumor drug, Ridaforolimus, failed to receive EU approval.
The company recently made a secondary offer of its shares at $19.60 apiece. It issued 15.307 million shares. The company plans to use the proceeds to fund the launch of its leukemia drug and other purposes. The company's new drug will be competing with drugs from major pharma companies like Bristol Myers Squibb and Novartis. However, the drug is still expected to reach $800 million figure for its peak sales. The drug is currently under review for sale in EU.
MannKind to Report Trial Results
MannKind reported higher-than-expected losses for its fourth quarter on account of higher charges for modifying the fair value of a contract. Its loss for the quarter stood at 23 cents per share. The company did not report any revenue for the quarter as it still does not have any approved drug in its portfolio. Despite this, the stock is up 7 percent this year and gained 11 percent in the past 12 months. Sign up for the free report on MannKind Corp. at
MannKind is expected to report the trial results for Afrezza, its ultra rapid insulin drug. The company's fortune depends on the performance of this drug. The results are expected to be released later this year in August. The company is promoted by Alfred Mann, who also acts as its CEO and owns 41 percent of the stock. He has previous track record as a medical entrepreneur and sold his previous venture MiniMed for $3 billion to Medtronic. Alfrezza has been declined twice by the FDA, first in 2010 and second time in 2011. However, this time the company seems to have put all its might behind the drug, which is likely to receive approval on its third attempt.
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