ARIAD prices common stock public offering

ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA) announced today the pricing of an underwritten public offering of 16,000,000 shares of its common stock at $3.70 per share. The offering is expected to close on or about October 29, 2010, subject to customary closing conditions. In addition, ARIAD has granted the underwriters a 30-day option to purchase up to 2,400,000 shares of common stock to cover over-allotments, if any. Jefferies & Company, Inc. and Oppenheimer & Co. are acting as joint book-running managers for the offering.

Based on the anticipated net proceeds from the offering, ARIAD now expects to end 2010 with approximately $102 million in cash and cash equivalents, which are anticipated to be sufficient to fund its operations into the second half of 2012. This funding is expected to enable ARIAD to complete enrollment in the pivotal Phase 2 PACE trial of oral ponatinib, ARIAD's investigational pan BCR-ABL inhibitor; to obtain at least six-months of follow-up response data; to complete analysis of the trial; and to prepare filings for marketing authorization of ponatinib. Depending on the results of the PACE trial, ARIAD anticipates filing a new drug application for ponatinib in the second half of 2012.

The Company anticipates that this funding will allow ARIAD to retain the substantial potential commercial value of ponatinib in multiple lines of treatment for chronic myeloid leukemia and other cancers by focusing its ponatinib partnering strategy on a regional collaboration in select markets outside of the U.S. The Company does not intend to pursue a global partnership for ponatinib and does not plan to execute any collaboration agreement for ponatinib until after completion of the final analysis of the Phase 3 SUCCEED trial of oral ridaforolimus, ARIAD's investigational mTOR inhibitor, which is expected in the first quarter of 2011.

A registration statement relating to the common stock was previously filed with, and declared effective by, the Securities and Exchange Commission. A final prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission.