William Blair Positive On Aratana Therapeutics Inc (PETX) Following FDA Approval For Nocita
Post-operative pain drug Nocita expected to begin generating widespread sales, says William Blair
William Blair analyst John Kreger reiterates an Outperform rating on shares of Aratana Therapeutics Inc (NASDAQ:PETX), following the news that the pet medicine maker received FDA approval for pipeline drug Nocita, a liposomal formulation of bupivacaine formerly known as AT-00, to treat postoperative pain in dogs. Nocita’s approval follows two other new animal drugs Galliprant, intended to control pain and inflammation associated with osteoarthritis in dogs, and Entyce, indicated for appetite stimulation in dogs.
In light of this approval, Kreger anticipates PETX’s primary focus will shine on commercial execution throughout these next 12 to 18 months. Though Nocita is PETX’s third in line to receive approval, Kreger has every expectation for Nocita to be the firm’s first product to generate widespread sales and the first to market, especially having already received approval for human use by Pacria.
Kreger believes,”We currently estimate that Nocita will begin generating revenue in the fourth quarter of 2016, while Galliprant and Entyce will begin generating revenue after the launches during the North American Veterinary Conference in February 2017. While there are certainly risks associated with the pace of the sales ramp-up, overall we believe the risk profile for Aratana has dropped materially in the last six months given three product approvals and the elimination of financing risk. We believe the shares have attractive upside remaining despite their recent strength and therefore maintain our Outperform rating.”
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance According to TipRanks, five-star analyst John Kreger is ranked #259 out of 4,124 analysts. Kreger upholds a high 79% success rate and earns 16.0% in his yearly returns. When recommending PETX, Kreger realizes 10.7% in average profits on the stock.
TipRanks analytics demonstrate PETX as a Strong Buy. 100% of analysts polled in the last 3 months rate a Buy on PETX. The 12-month average price target stands at $12.33, marking a 37% upside from where the shares last closed.
Recommended Article: Credit Suisse Weighs in on Aratana 2Q Earnings; All Eyes on Galliprant