Ariad reports Q1 results: biz.yahoo.com
ARIAD Reports First Quarter 2005 Results Wednesday May 4, 7:30 am ET Sarcoma Market Highlights
CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 4, 2005--ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA - News) today announced financial results for the quarter ended March 31, 2005 and provided an update on progress towards achievement of 2005 goals.
"We recently chose the treatment of soft-tissue and bone sarcomas as the initial registration path for our novel mTOR inhibitor, AP23573, which was designated a fast-track product by the U.S. Food and Drug Administration (FDA) for this indication. We also initiated several additional clinical trials of AP23573: Phase 2 studies in patients with hormone-refractory prostate cancer and Phase 1b studies combining AP23573 with two chemotherapeutic agents in patients with various solid tumors. Finally, the Investigational New Drug (IND) application for the oral dosage form of AP23573 became effective, and we expect to begin enrollment in this clinical trial shortly," said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. "We are clearly on track to achieve all of our key product-development milestones for 2005 on or ahead of schedule."
Financial Highlights
For the quarter ended March 31, 2005, the Company reported a net loss of $12.3 million, or $0.23 per share, as compared to $6.2 million, or $0.13 per share, for the quarter ended March 31, 2004. The increase in net loss for the quarter is due primarily to higher R&D expenses resulting from execution of the global development plan for its lead cancer product candidate, AP23573. Cash used in operations for the quarter was $10.1 million, consistent with the Company's guidance for 2005 of $39 million to $42 million.
The Company ended the first quarter 2005 with $63.4 million in cash, cash equivalents, and marketable securities, compared with $75.5 million at the end of 2004.
Sarcoma Market Highlights
Urgent Unmet Medical Need. Fast-track designation by the FDA is granted only when there is an urgent need for a new treatment. Patients with soft-tissue and bone sarcomas have a serious and life-threatening condition for which treatment options are limited or non-existent. There are no effective therapies currently available for advanced soft-tissue sarcomas or metastatic refractory sarcomas in general.
The Numbers. In the U.S. alone, public health authorities estimate current sarcoma prevalence and incidence of new cases and deaths as follows(1,2).
Sarcoma Type Prevalence New Cases Sarcoma Deaths Soft Tissue 71,343 9,420 3,490 Bone and Joint 27,684 2,570 1,210
To put these numbers in perspective:
* They are exclusive of Europe, Japan, China and the rest of the world. * The prevalence of all sarcomas is more than five times higher than the prevalence of chronic myelogenous leukemia (CML) - the initial indication for imatinib (Gleevec®).
Types of Sarcoma. Sarcomas are malignant tumors associated with one of the various connective tissues that hold the body together, such as muscles, nerves, bones, fat, tendons, cartilage, blood vessel or deep skin tissues. Sarcomas can develop in any part of the body. Half of them develop in the arms or legs; the rest arise in the trunk, head and neck area, internal organs, or the back of the abdominal cavity. Sarcomas are generally divided into two broad classes: soft-tissue sarcomas and bone sarcomas.
Soft-tissue Sarcomas. Soft-tissue sarcomas are the most frequent form of the disease. Since many patients with soft-tissue sarcoma are not diagnosed until the disease is far advanced, the 5-year survival rate of those patients with distant metastases is only 10% to 15%.
Primary Bone Sarcomas. The three most common kinds of primary bone sarcomas are: osteosarcoma (35%), chondrosarcoma (30%) and the Ewing's family of tumors (16%). Osteosarcoma primarily affects adolescents and young adults and is almost always a highly aggressive tumor with either detectable or subclinical metastases.
References.
(1) Jemal A, et al. Cancer Statistics, 2005. CA: A Cancer Journal for Clinicians 55(1): 10-30(2005).
(2) Statistical Research and Applications Branch National Cancer Institue. Website: seer.cancer.gov. Accessed April 19, 2005.
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