Aratana Therapeutics Inc (NASDAQ:PETX) investors are wildly disappointed today after the pet medicine maker provided a corporate update as follows:
- The Company now anticipates that ENTYCE® (capromorelin oral solution) will be commercially available by late-2017. On February 2, 2017, the Company received a response from the U.S. Food and Drug Administration’s Center for Veterinary Medicine in connection with the Company’s post-approval supplement request to transfer the manufacturing of ENTYCE® to a new vendor in order to produce ENTYCE® at commercial scale. The CVM has requested additional information regarding the proposed transfer in order to complete the supplemental application, and the Company intends to work with the CVM to address its request.
- With the expected later commercial launch of ENTYCE®, the Company intends to continue to focus its commercial resources on NOCITA® (bupivacaine liposome injectable suspension), a local post-operative analgesia for cranial cruciate ligament surgery in dogs, which became commercially available in the late fall of 2016. The Company is focusing on gaining access to the several hundred surgeons who frequently perform these procedures. This effort has required, and the Company expects it will continue to require, significant effort by its sales force given the longer sales cycle than what the Company would expect with a general practice product. The Company is also conducting additional clinical work in other surgical procedures to potentially expand the label for NOCITA® in dogs.
Reacting to the updates, Aratana shares are falling nearly 18% to $6.61. PETX has a 1-year high of $10.73 and a 1-year low of $2.56. The stock’s 50-day moving average is $7.73 and its 200-day moving average is $8.28.
On the ratings front, PETX has been the subject of a number of recent research reports. In a report issued on November 15, Jefferies’ analyst David Gu reiterated a Buy rating on PETX, with a price target of $11, which represents a potential upside of 52% from where the stock is currently trading. On November 3, Credit Suisse’s Erin Wilson reiterated a Buy rating on the stock and has a price target of $10.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Gu and Erin Wilson have a yearly average loss of 5.3% and a return of 9.7% respectively. Gu has a success rate of 50% and is ranked #3177 out of 4374 analysts, while Wilson has a success rate of 69% and is ranked #569.
Aratana Therapeutics, Inc. is a development stage biopharmaceutical company, which focuses on the licensing, development and commercialization of innovative prescription medications for pets, or pet therapeutics. It delivers innovative prescription medicines that address significant medical needs for cats and dogs. The company licenses proprietary, patent-protected compounds from human pharmaceutical and biotechnology companies.