Date: 2016-06-17
Type of information: Restructuring
Compound:
Company: Ariad Pharmaceuticals (USA - MA)
Therapeutic area: Cancer - Oncology - Rare diseases
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On March 29, 2016, Ariad Pharmaceuticals announced that it is reducing approximately 25 percent of its headquarter positions. The reduction includes approximately 90 positions in the U.S. and Europe . No customer-facing positions within Ariad's commercial or medical affairs organizations are included in this action. This reduction in workforce is one of five key areas of Ariad's ongoing strategic review. This review also includes an evaluation of commercial maximization initiatives, geographical presence, R&D portfolio, and business development opportunities to support the overall strategic direction. Ariad plans to provide further details on the progress of the strategic review, which is aimed at increasing patient and shareholder value, in the second quarter of 2016.
Financial terms:
Latest news: * On June 17, 2016, Ariad Pharmaceuticals announced the completion of its strategic review and its plans for future growth and vision to become a leader in the discovery, development and commercialization of precision therapies for patients with rare cancers. Initiated at the beginning of this year, Ariad's strategic review included rigorous, quantitative analyses to evaluate the Company's business in its entirety, with a focus on five key areas: geographic reach, commercial maximization, research and development (R&D) portfolio, cost efficiencies and business development opportunities. Key outcomes of the strategic review that are focused on achieving rapid progress in transforming the Company's strategy, culture and financial position include: A commitment to commercializing brigatinib in the U.S., subject to approval by the FDA. The Company announced initiation of its rolling new drug application (NDA) to the FDA today, ahead of previously announced plans. In addition, Ariad announced the entry into new distribution agreements for Iclusig in Latin America and the Middle East / North Africa .
A focus on the valuable U.S. market, with the divestiture of the Company's European operations and out-license of Iclusig® (ponatinib) rights in Europe and other selected countries to Incyte Corporation , while also maintaining future strategic flexibility through a buy-back provision for the licensed Iclusig rights following a change of control of Ariad.
The company will also significantly reduce its expense base, together with more rigorous cost controls, while also planning to commit resources to expand its product pipeline and conducting clinical trials to expand potential market opportunities.
Changes to its executive leadership team and board of directors.
A decision to build upon the Company's core strengths in precision small molecule therapies and rare cancers, including investing in potential new opportunities in immuno-oncology, with pharmacologic proof-of-concept achieved against a validated lead target.
