Ariad Pharma To Cut 40% Of Workforce In U.S. - Quick Facts

(RTTNews) - Ariad Pharmaceuticals Inc. (ARIA) said it will reduce about 40 percent of its staff positions, or 160 positions, in the U.S. following its decision to temporarily suspend the marketing and commercial distribution of Iclusig or ponatinib in the U.S.

The company noted that the reduction in U.S. staff includes positions in all major departments and is part of a broad program taken by the company to significantly reduce its corporate operating expenses as well as bolster its cash position. Ariad will share details of this program when it reports third-quarter financial results on Tuesday, November 12.

Ariad expects to complete the workforce reduction by year-end and yield pre-tax savings of about $26 million in 2014. The company anticipates restructuring charges associated with these changes to be about $5 million in the fourth quarter of 2013. Ariad added that there will be no reductions in staff positions in Europe.

Following the workforce reduction, Ariad expects to have about 295 employees in the U.S. and Europe.

In mid-October, Ariad said it halted a late-stage trial of Iclusig in patients with newly diagnosed chronic myeloid leukemia. The decision was taken in tandem with the U.S. Food and Drug Administration as arterial thrombotic events were observed in patients treated with Iclusig.