Exhibit 99.2


(ARIAD LOGO)                                                        NEWS RELEASE


FOR IMMEDIATE RELEASE               CONTACT:       Edward Fitzgerald (Investors)
                                                   (617) 621-2345

                      ARIAD ANNOUNCES $14 MILLION FINANCING

CAMBRIDGE, MA, OCTOBER 20, 2006 -- ARIAD Pharmaceuticals, Inc. (Nasdaq: ARIA)
announced today that it has agreed to sell 3,112,945 shares of its common stock
pursuant to its effective shelf registration statements in an underwritten
offering. The underwriter has been granted an option to purchase up to an
additional 466,942 shares of ARIAD's common stock to cover over-allotments.
ARIAD expects the net proceeds from the sale of the shares will be approximately
$14 million. All of the shares in the offering are being sold by ARIAD.

Credit Suisse Securities (USA) LLC is acting as sole underwriter for the
offering. ARIAD expects the closing of the offering to occur on or about October
25, 2006, subject to customary closing conditions. As a result of this
transaction, ARIAD will have no remaining shares available under shelf
registration statements.

Additional information and details with respect to the offering will be included
in prospectus supplements and accompanying prospectuses that will be filed with
the SEC. When available, copies of the prospectus supplements and accompanying
prospectuses may be obtained from Credit Suisse, Prospectus Department, One
Madison Avenue, New York, New York 10010-3629 (212-325-2580).

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.

ARIAD is engaged in the discovery and development of breakthrough medicines to
treat cancer by regulating cell signaling with small molecules.

Some of the matters discussed herein are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
are identified by the use of words such as "may", "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," and other words and terms of
similar meaning in connection with any discussion of future operating or
financial performance. Such statements, including those related to the agreement
to sell shares of common stock described in this press release, are based on
management's expectations and are subject to certain factors, risks and
uncertainties that may cause actual results, outcome of events, timing and
performance to differ materially from those expressed or implied by such
forward-looking statements.


These risks include, but are not limited to, risks and uncertainties regarding
our ability to accurately estimate the timing and actual R&D expenses and other
costs associated with the preclinical and clinical development and manufacture
of our product candidates, the adequacy of our capital resources and the
availability of additional funding, risks and uncertainties regarding our
ability to manufacture or have manufactured our product candidates on a
commercial scale, risks and uncertainties regarding our ability to successfully
recruit centers, enroll patients and conduct clinical studies of product
candidates, risks and uncertainties that clinical trial results at any phase of
development may be adverse or may not be predictive of future results or lead to
regulatory approval of any of our or any partner's product candidates, risks and
uncertainties of third-party intellectual property claims relating to our and
any partner's product candidates, and risks and uncertainties relating to
regulatory oversight, the timing, scope, cost and outcome of legal and patent
office proceedings, litigation, prosecution and re-examination proceedings
concerning our NF-(kappa)B patent portfolio, future capital needs, key
employees, dependence on collaborators and manufacturers, markets, economic
conditions, products, services, prices, reimbursement rates, competition and
other factors detailed in the Company's public filings with the Securities and
Exchange Commission, including ARIAD's Annual Report on Form 10-K for the fiscal
year ended December 31, 2005. The information contained in this document is
believed to be current as of the date of original issue. The Company does not
intend to update any of the forward-looking statements after the date of this
document to conform these statements to actual results or to changes in the
Company's expectations, except as required by law.

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