Morgan & Morgan is investigating whether or not Ariad Pharmaceuticals Inc. (“Ariad” or the “Company”) (ARIA) and certain of its officers violated the federal securities laws when making statements to investors regarding its experimental drug Iclusig.
On October 9, 2013, the Company updated the data from its PACE trial of Iclusig and revealed that the drug was shown to cause a higher rate of blood clots and heart-related side effects than previously disclosed. As a result, the FDA placed a hold on new patient enrollment for Iclusig testing, and the Company advised patients currently receiving the drug to lower their dosage.
Following this news, shares of Ariad fell $11.31, almost 66%, to close at $5.83 per share on October 9, 2013.
Health Plan News will post updates to this story if warranted.