Aratana: Public Offering Eliminates Financial Overhang, Says William Blair


In a research report issued today, William Blair analyst John Kreger assigned an Outperform rating on Aratana Therapeutics (NASDAQ:PETX), following the company’s public offering of 5.2 million shares of common stock at $9.25 per share. No price target was provided.

Kreger wrote, “We continue to rate Aratana Outperform given the recent weakness and ongoing impressive clinical progress. Overall, while we are surprised that the company would raise equity at a relatively low stock price, we note that this move eliminates the financing overhang through the company’s development stage. We believe that the company will now be able to fund operations through the end of 2016, the year in which it is expected to receive FDA approval of three products—AT-001, AT-002, and AT-003—if the data are favorable. “

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Kreger has a total average return of 8.4% and a 75.0% success rate. Kreger has an -18.3% average return when recommending PETX, and is ranked #1275 out of 3293 analysts.

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