Exhibit 99.1

     New Study by ARIAD Scientists Offers Insights into Design of
        Small-Molecule Drugs to Treat Drug-Resistant Leukemia


    CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 9, 2007--ARIAD
Pharmaceuticals, Inc. (NASDAQ: ARIA) today announced publication, for
the first time, of the high-resolution structure of the protein
responsible for one of the major clinically relevant genetic variants
of drug-resistant chronic myeloid leukemia (CML). These findings by a
team of ARIAD scientists were used to guide the design of ARIAD's oral
multi-targeted kinase inhibitor, AP24534, for use in CML and other
cancers. The findings were published in the September issue of
Chemical Biology and Drug Design. ARIAD plans to file an
investigational new drug application for AP24534 by the end of this
year to begin clinical trials.

    CML is a slowly progressing cancer in which too many white blood
cells are made in the bone marrow. In most cases, a genetic
abnormality involving the Bcr-Abl protein, a tyrosine kinase encoded
by the Philadelphia chromosome, results in constantly activated growth
of cancer cells.

    Through X-ray crystallographic studies, this study showed in
detail how inhibitors of the Bcr-Abl protein, such as AP24534, are
able to overcome the structural changes induced by the T315I mutation
and bind to the mutated form of the protein. The data also explain why
the first-generation Bcr-Abl inhibitor, imatinib, and
second-generation Bcr-Abl inhibitors, such as dasatinib and nilotinib,
are not able to inhibit this key genetic variant and thus are not
effective against all forms of CML.

    In contrast to these first- and second-generation Bcr-Abl
inhibitors, AP24534 potently blocks all clinically relevant forms of
the Bcr-Abl protein, including the unmutated protein (the target of
imatinib), the commonly mutated proteins (the targets of dasatinib and
nilotinib), and the T315I mutated protein.

    The Bcr-Abl T315I mutation currently accounts for 15 to 20 percent
of all drug resistance in CML. The prevalence of the T315I mutation is
increasing as patients relapse after treatment with current
second-generation inhibitors.

    "There is a growing unmet medical need for new treatment options
for CML patients who no longer are responding to first- and
second-generation targeted therapies or have become intolerant to
these treatments. This detailed structural analysis of the T315I
mutation was a critical step in our effort to design a new targeted
therapy for leukemia," said Tim Clackson, Ph.D., chief scientific
officer of ARIAD. "These data support our ongoing plans to develop
AP24534 in various forms of leukemia and to file an investigational
new drug application for AP24534 later this year."

    Preclinical studies presented at last year's American Society of
Hematology meeting demonstrated that AP24534 potently blocked the
growth of tumors expressing this genetic variant and increased
survival in difficult-to-treat animal models. AP24534 also is a potent
inhibitor of the VEGF and FGF receptor families, which are critical
for the process of tumor angiogenesis - the growth of new blood
vessels into tumors, providing support for the use of AP24534 beyond
CML in the treatment of solid tumors.

    Reference: Zhou T., Parillon L., Li F., et al: (2007) Crystal
Structure of the T315I Mutant of Abl Kinase. Chemical Biology and Drug
Design 70:171-181.

    About ARIAD

    ARIAD is engaged in the discovery and development of breakthrough
medicines to treat cancer by regulating cell signaling with small
molecules. ARIAD is developing a comprehensive approach to patients
with cancer that addresses the greatest medical need - aggressive and
advanced-stage cancers for which current treatments are inadequate.
ARIAD has a global partnership with Merck & Co., Inc. to develop and
commercialize deforolimus, ARIAD's lead cancer product candidate.
Medinol Ltd. is also developing deforolimus-eluting stents to prevent
restenosis of injured vessels following interventions in which stents
are used in conjunction with balloon angioplasty. ARIAD has an
exclusive license to pioneering technology and patents related to
certain NF-(kappa)B treatment methods, and the discovery and
development of drugs to regulate NF-(kappa)B cell-signaling activity,
which may be useful in treating certain diseases. Additional
information about ARIAD can be found on the web at
http://www.ariad.com.

    This press release contains "forward-looking statements,"
including statements related to the potential utility of AP24534 and
the timing of regulatory filings. Forward-looking statements are based
on management's expectations and are subject to certain factors, risks
and uncertainties that may cause actual results, outcome of events,
timing and performance to differ materially from those expressed or
implied by such statements. These risks and uncertainties include, but
are not limited to, the costs associated with our research,
development, manufacturing and other activities, the conduct and
results of pre-clinical and clinical studies of our product
candidates, difficulties or delays in obtaining regulatory approvals
to market products resulting from our development efforts, our
reliance on strategic partners and licensees, and other key parties
for the successful development, manufacturing and commercialization of
products, the adequacy of our capital resources and the availability
of additional funding, patent protection and third-party intellectual
property claims relating to our and any partner's product candidates,
the timing, scope, cost and outcome of legal and patent office
proceedings concerning our NF-(kappa)B patent portfolio, the potential
acquisition of or other strategic transaction regarding the minority
stockholders' interests in our 80%-owned subsidiary, ARIAD Gene
Therapeutics, Inc., future capital needs, key employees, markets,
economic conditions, prices, reimbursement rates, competition and
other factors detailed in the Company's public filings with the U.S.
Securities and Exchange Commission. The information contained in this
document is believed to be current as of the date of original issue.
The Company does not intend to update any of the forward-looking
statements after the date of this document to conform these statements
to actual results or to changes in the Company's expectations, except
as required by law.


    CONTACT: ARIAD Pharmaceuticals, Inc.
             Edward M. Fitzgerald, 617-621-2345
             or
             Sondra Newman, 617-877-5687