ARIAD completes strategic review and announces plans for growth

Key outcome of the strategic review is a commitment to commercializing brigatinib in the US, subject to approval by the FDA.

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 US, subject to approval by the FDA. The company announced initiation of its rolling new drug application (NDA) to the FDA, ahead of previously announced plans.

A focus on the valuable US 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. In addition, ARIAD announced the entry into new distribution agreements for Iclusig in Latin America and the Middle East/North Africa.

A significant reduction in the company’s 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.

“We are confident that the completion of our strategic review and our announced decisions throughout the process strongly position ARIAD for growth and an opportunity to deliver increased patient and shareholder value,” said Paris Panayiotopoulos, president and chief executive officer of ARIAD. “We are dedicated to building on our core strengths in precision therapies to treat rare cancers, to potentially becoming a two product commercial company in the near-term, to expanding our market opportunities through our development programs in the mid-term, and to delivering on our drug discovery programs in the long-term.”