Ariad Pharma/Merck & Co's ridaforolimus meets Ph III primary endpoint

Shares of US drug developer Ariad Pharmaceuticals (Nasdaq: ARIA) rocketed 36% to $7.16 in pre-market trading yesterday after the company revealed top-line data showing that its lead product candidate ridaforolimus, an investigational oral mTOR inhibitor, met the primary endpoint of improved progression-free survival (PFS) compared to placebo in the Phase III SUCCEED trial conducted in patients with metastatic soft-tissue or bone sarcomas who previously had a favorable response to chemotherapy.

Pharma giant Merck & Co is currently developing ridaforolimus in multiple cancer indications under an exclusive license and collaboration agreement with Ariad. Complete findings from the SUCCEED trial will be submitted for presentation at an upcoming medical meeting this year.

Under a restructured accord, Merck acquired full control of the development and worldwide commercialization of ridaforolimus (The Pharma Letter May 6, 2010). Ariad received a $50 million upfront fee and is eligible for milestones associated with regulatory filings and approvals of the drug in multiple cancer indications and achievement of significant sales thresholds of as much as $514 million, as well as a reimbursement of R&D expenses of $19 million. Merck had already paid Ariad more than $125 million for its work developing the drug up to the signing of the new deal.