Aratana Therapeutics, Inc. – Nasdaq: PETX
Aratana Therapeutics Inc. announced that its Entyce product (capromorelin oral solution), approved in May of 2016 by the FDA’s Center for Veterinary Medicine, will not be hit the market until late 2017. Entyce is an oral liquid approved to treat dogs who have lost their desire to eat, a condition affecting ten million canines annually. The announcement sent its shares, traded on the Nasdaq under ticker PETX, sliding over 18% in early trading on heavy volumes. PETX ended Friday’s session at $8.03 and gapped down to open at $7.23 as traders reacted to the announcement of the delay.
Leawood, KS-based Aratana Therapeutics is a clinical-stage biopharmaceutical company. Aratana develops, licenses, and markets pet therapeutics for dogs and cats. The stated vision of Aratana is to find human drug development opportunities and apply them to veterinary medicine, specifically to advance therapeutics for pets. Aratana believes there is a gap in the availability of innovative treatments for serious diseases or chronic conditions in dogs and cats when compared to the market for humans – they claim that development typically lags years behind human health.
Rumors abound that Aratana is a possible acquisition after the Mars Incorporated acquired Aratana Therapeutics competitor VCA Antech (Nasdaq: WOOF) for $8 billion. Mars could be now receiving more than half its revenues from pet related sales. This continues a trend that reflects the fact that the average family size is shrinking while spending for pets continues its steady growth – pet healthcare expenditures have risen around 20% in just over two years.
PETX is trading at over three times its normal average daily volume in early morning action. Analysts from five firms follow PETX shares. Four rate PETX as a “Strong Buy” and one rates the shares as a “Hold”. Their consensus price target is $11.
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|Last Price a/o 10:24 AM EST||$ 6.64|
|Market Cap (mlns)||$ 292.69|
|Shares Outstanding (mlns)||36.45|
|Share Float (mlns)||35.32|
|Short Interest Ratio||7.52|