Ariad ends quarter with $39.2 million of cash, net loss grows to $47.6 million

By Angela McDaniels

Seattle, Nov. 2 - Ariad Pharmaceuticals, Inc.'s cash, cash equivalents and marketable securities fell to $39.2 million at the end of the third quarter from $81.5 million at the end of 2005, according to a company news release.

The company said its cash position will be $53.5 million including $14.3 million of net proceeds from a follow-on offering of 3.1 million shares of common stock it completed on Oct. 25.

For the nine months ended Sept. 30, cash used in operations was $42.2 million, and Ariad reiterated its cash used in operations financial guidance of $53 million to $56 million for the full-year 2006.

The net loss was $15.2 million, or $0.25 per share, for the quarter ended Sept. 30, compared with $14.6 million, or $0.25 per share, for the same quarter of 2005.

Ariad attributed the greater net loss primarily to higher expenses resulting from its NF-(kappa)B patent infringement litigation and the adoption of new accounting requirements related to stock options and other share-based payments, offset in part by lower research and development costs reflecting the later stages of certain clinical trials for the company's lead product candidate, AP23573.

Total license revenue was $229,000 for the quarter, less than the $321,000 the company reported for the same quarter of last year.

For the first nine months of 2006, the net loss increased to $47.6 million, or $0.77 per share, from $41.0 million, or $0.75 per share, for the nine months ended Sept. 30, 2005.

Total license revenue fell to $688,000 for the nine months ended Sept. 30 from $975,000 for the same period of 2005.

"We remain on track to launch our randomized, worldwide phase 3 clinical trial in advanced sarcomas and to initiate patient enrollment at major sarcoma centers during the first quarter of 2007," chairman and chief executive officer Harvey J. Berger said in the release.

"In addition, our negotiations with multiple potential partners regarding an ex-US collaboration for AP23573 are advancing toward completion."

Cambridge, Mass.-based Ariad develops pharmaceuticals that treat cancer by regulating cell signaling with small molecules.

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