UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August
2, 2012
ARIAD
Pharmaceuticals, Inc.
(Exact
name of registrant as specified in its charter)
Delaware |
0-21696 |
22-3106987 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
26 Landsdowne Street, Cambridge, Massachusetts |
02139 |
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including
area code: (617) 494-0400
Not
Applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 | Results of Operations and Financial Condition. |
In a press release dated August 2, 2012, ARIAD Pharmaceuticals, Inc. (the “Company”) announced financial results for the fiscal quarter and six months ended June 30, 2012. A copy of the press release is attached hereto as Exhibit 99.1. The information under the headings “Financial Highlights from the Second Quarter of 2012” (other than under the subheading “Updated Financial Guidance for 2012”) and “Today’s Conference Call Reminder” and the condensed consolidated financial information included in the press release are incorporated by reference into this Item 2.02 of this Current Report on Form 8-K.
ITEM 7.01 | Regulation FD Disclosure. |
In the press release dated August 2, 2012, the Company also provided updated financial guidance for 2012 and information on upcoming medical and investor meetings. The information set forth under the headings “Financial Highlights from the Second Quarter of 2012 -- Updated Financial Guidance for 2012”, “Upcoming Medical Meeting” and “Upcoming Investor Meetings” in the press release is incorporated by reference into this Item 7.01 of this Current Report on Form 8-K.
ITEM 8.01 | Other Events. |
In the press release dated August 2, 2012, the Company also provided an update on its ponatinib and AP26113 programs. The second paragraph of the press release and the information set forth under the heading “Development Progress,” together with the forward-looking statement disclaimer at the end of the press release, are incorporated by reference into this Item 8.01 of this Current Report on Form 8-K.
ITEM 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit | ||
Number |
Description |
|
99.1 | Press release dated August 2, 2012. |
The press release contains hypertext links to information on our website. The information on our website is not incorporated by reference into this Current Report on Form 8-K and does not constitute a part of this Form 8-K.
The portions of the press release incorporated by reference into Item 8.01 of this Current Report on Form 8-K are being filed pursuant to Item 8.01. The remaining portions of the press release are being furnished pursuant to Items 2.02 and 7.01 of this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARIAD Pharmaceuticals, Inc. |
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|
|
By: |
/s/ Edward M. Fitzgerald |
||
Edward M. Fitzgerald |
|||||
Executive Vice President, Chief Financial Officer |
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Date: |
August 2, 2012 |
3
Exhibit 99.1
ARIAD Reports Second Quarter 2012 Financial Results and Development Progress
~ Ponatinib NDA Under Review at FDA
~ Phase 3 EPIC Trial of Ponatinib Now Enrolling Patients
~ Ponatinib Granted Accelerated Assessment in Europe by CHMP
~ Early Phase 1/2 Trial Data on AP26113 to be Presented at ESMO
CAMBRIDGE, Mass.--(BUSINESS WIRE)--August 2, 2012--ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today reported financial results for the second quarter and six months ended June 30, 2012 and provided an update on corporate developments.
“The second quarter of 2012 was a highly productive time for ARIAD,” stated Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. “We are executing effectively within all areas of the company with our development programs for ponatinib and AP26113 moving forward either ahead of schedule or as planned, and momentum is building for U.S. and European launch of ponatinib in 2013. This is an exciting time at ARIAD as we build a global commercial oncology company based on our internally discovered product candidates.”
Development Progress
Ponatinib Moving Closer to Potential U.S. Commercialization in 1Q of 2013
Preparing for Global Commercial Launch of Ponatinib
Early Data on AP26113 to be Presented at ESMO in September
Financial Highlights from the Second Quarter of 2012
Cash Position
At June 30, 2012, cash, cash equivalents and marketable securities totaled $250.3 million, compared to $306.3 million at December 31, 2011.
Net Income/Loss
Net loss for the quarter ended June 30, 2012, was $51.3 million, or $0.31 per share, compared to a net loss of $47.8 million, or $0.36 per share, for the same period in 2011. For the six month period ended June 30, 2012, net loss was $107.2 million, or $0.66 per share, compared to a net loss of $85.7 million, or $0.66 per share, for the same period in 2011.
Research and development expenses increased by $20.7 million from the second quarter of 2011 to the second quarter of 2012 and by $34.9 million from the first half of 2011 to the first half of 2012 reflecting expansion of development activities for ponatinib, including an increase in personnel expenses to support those activities. In addition, research and development expenses in the second quarter of 2012 included a charge of $4.8 million to write down the carrying value of intangible assets related to ridaforolimus following the Complete Response Letter issued by the FDA in June 2012 to the NDA filed by Merck & Co., Inc. for ridaforolimus in patients with sarcomas.
General and administrative expenses increased by $6.1 million from the second quarter of 2011 to the second quarter of 2012 and by $12.5 million from the first half of 2011 to the first half of 2012 due to growth in commercial operations and supporting activities in anticipation of potential regulatory approval and commercial launch of ponatinib.
ARIAD’s net loss for the first half of 2012 also reflects a charge of $15.9 million, taken in the first quarter of 2012, related to the revaluation of our warrant liability, compared to a charge of $41.5 million for the first half of 2011, due to increases in the market price of our common stock during those periods.
Updated Financial Guidance for 2012
As a result of not receiving the $25 million milestone payment from Merck related to U.S. approval of ridaforolimus in the sarcoma indication, offset in part by reduced expenses, financial guidance for 2012 is being updated.
ARIAD expects cash used in operations for 2012 to be in the range of $162 million to $167 million. ARIAD expects cash, cash equivalents and marketable securities at December 31, 2012 to be in the range of $142 million to $147 million. ARIAD estimates that current cash, cash equivalents and marketable securities are sufficient to fund operations to the fourth quarter of 2013.
Upcoming Medical Meeting
Upcoming Investor Meetings
ARIAD management will be making corporate presentations at the following investor conferences:
Today’s Conference Call Reminder
ARIAD will hold a live webcast of its quarterly conference call today, August 2, 2011, at 8:30 a.m. (ET). The live webcast can be accessed by visiting the investor relations section of the Company’s website at http://investor.ariad.com. The call can be accessed by dialing 1-866-356-4123 (domestic) or 1-617-597-5393 (international) five minutes prior to the start time and providing the pass code 35169451. A replay of the call will be available on the ARIAD website approximately two hours after completion of the call and will be archived for three weeks.
About ARIAD
ARIAD Pharmaceuticals, Inc. is an emerging global oncology company focused on the discovery, development and commercialization of medicines to transform the lives of cancer patients. ARIAD’s approach to structure-based drug design has led to several internally discovered, molecularly targeted product candidates for drug-resistant or difficult-to-treat cancers, including chronic myeloid leukemia and certain forms of non-small cell lung cancer. For additional information, visit http://www.ariad.com or follow ARIAD on Twitter (@ARIADPharm).
This press release contains “forward-looking statements” including, but not limited to, updates on clinical, preclinical and regulatory developments for our product candidates and financial guidance. 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, preclinical data and early-stage clinical data that may not be replicated in later-stage clinical studies, the costs associated with our research, development, manufacturing and other activities, the conduct, timing and results of pre-clinical and clinical studies of our product candidates, the adequacy of our capital resources and the availability of additional funding, and other factors detailed in the Company's public filings with the U.S. Securities and Exchange Commission. The information contained in this press release 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.
ARIAD PHARMACEUTICALS, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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In thousands, except per share data |
Three Months Ended |
Six Months Ended |
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2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||
Total revenue | $ | 318 | $ | 66 | $ | 399 | $ | 122 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 39,425 | 18,754 | 68,198 | 33,329 | |||||||||||||||||||
General and administrative | 12,224 | 6,152 | 23,512 | 11,005 | |||||||||||||||||||
Total operating expenses | 51,649 | 24,906 | 91,710 | 44,334 | |||||||||||||||||||
Revaluation of warrant liability | --- | (22,903 | ) | (15,924 | ) | (41,475 |
) |
|
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Other | 19 | (19 | ) | 29 | (24 |
) |
|
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Other income (expense), net | 19 | (22,922 | ) | (15,895 | ) | (41,499 |
) |
|
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Net loss | $ | (51,312 | ) | $ | (47,762 | ) | $ | (107,206 | ) | $ | (85,711 |
) |
|
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Net loss per common share: | |||||||||||||||||||||||
-- basic and fully diluted | $ | (0.31 | ) | $ | (0.36 | ) | $ | (0.66 | ) | $ | (0.66 | ) | |||||||||||
Weighted average number of shares |
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-- basic and fully diluted | 165,848 | 132,021 | 163,409 | 130,518 | |||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION |
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In thousands |
June 30, |
December 31, |
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(Unaudited) | ||||||||||
Cash, cash equivalents and marketable securities | $ | 250,266 | $ | 306,256 | ||||||
Total assets | $ | 261,712 | $ | 320,712 | ||||||
Working capital | $ | 218,751 | $ | 282,195 | ||||||
Total liabilities | $ | 50,223 | $ | 100,571 | ||||||
Stockholders’ equity | $ | 211,489 | $ | 220,141 | ||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION |
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In thousands |
Six Months Ended |
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2011 | 2010 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Net cash used in operating activities | $ | (68,157 | ) | $ | (35,441 | ) | ||||||
Net cash used in investing activities | (92,185 | ) | (1,389 | ) | ||||||||
Net cash provided by financing activities | 14,819 | 14,049 | ||||||||||
Net decrease in cash and cash equivalents | $ | (145,523 | ) | $ | (22,781 | ) | ||||||
CONTACT:
ARIAD Pharmaceuticals, Inc.
For Investors
Maria
E. Cantor, 617-621-2208
Maria.cantor@ariad.com
or
For
Media
Liza Heapes, 617-621-2315
Liza.heapes@ariad.com