Dallas, Texas 11/25/2013 (Financialstrend) – The $700 million market capped development stage bio tech firm Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) stock performed a trapeze act at the markets on November 25. It posted a super impressive 35% increase in its market valuation on the last day of trading of the week. This upsurge in the stock of this drug makers market valuation reverses the sever pressure on the stock from the markets in the past 12 months.
EU Shows Thumbs Up
This buoyancy in the sentiments of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) stock was caused by the European drug regulators decision to take a different course of action in comparison to their American FDA counterparts with regards to granting of extension of license for Ariad’s blood cancer drug. The predicated approval for their leukaemia drug was reported by the drug maker to SEC as part of the mandatory filings that firms have to provide the market regulator.
US FDA Had Red Flagged the Same Drug
Readers should note that the European regulators decision was in complete contrast to FDA’s decision to suspend the sale of Ariad’s Leukemia drug in U.S due to the yet to be investigated new found risks associated with the treatment. When this decision was made public at the end of last month, the stock of the drug maker had haemorrhaged at the markets by shedding close to half its market value in trading on October 31, when FDA decision became public.
Regaining Investor Confidence
While the immediate sky rocketing of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) market value on Friday is directly linked to the news of good tidings from the European regulators for its cancer drug, the stock managed to gain back part of its lost valuation earlier this month post its 3Q results on November 12. In the past one week of trading the stock has posted 56% increase in its market valuation which moderates to a 23% increase when tracked over a 30 day period.