Ariad Pharmaceuticals, Inc. has entered into an agreement with ICON Medical to develop and commercialize drug-eluting

Ariad Pharmaceuticals, Inc. has entered into an agreement with ICON Medical to develop and commercialize drug-eluting stents that deliver ARIAD's novel mTOR inhibitor, deforolimus. ARIAD's novel inhibitor prevents restenosis of injured vessels following interventions in which stents are used in conjunction with balloon angioplasty. Inhibitors of mTOR block the wound-healing response to arterial injury that leads to restenosis.

As part of the agreement, ARIAD will receive an equity stake in ICON, an emerging cardiovascular medical device company, up to $27 million in payments based on achievement of certain clinical, regulatory and commercial milestones for two products and royalties on worldwide sales of all ICON medical devices delivering deforolimus. ICON will be responsible for the development and commercialization of these medical devices, and ARIAD will supply deforolimus to ICON for use in these devices.