In a report released today, Swayampakula Ramakanth from H.C. Wainwright downgraded Aratana (PETX) to Hold, with a price target of $4.75. The company’s shares opened today at $4.67.
Ramakanth commented:
“We note that this represents a 38% premium over Aratana’s April 25 stock price of $3.43 per share. Furthermore, Aratana shareholders are expected to receive one contingent value right (CVR) for each share of Aratana, which is eligible for $0.25 in cash per CVR should capromorelin (Entyce) is able to achieve certain undisclosed sales levels before the end of 2021. Including the CVR, the aggregate value of the transaction is valued at $245M. According to Elanco management, the transaction is expected to close by late 2Q19 or early 3Q19, subject to shareholder and SEC approvals. As a result of this announcement as well as the stock appreciation on April 26, we are downgrading our rating of PETX to $4.75 price target.”
According to TipRanks.com, Ramakanth is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -10.3% and a 31.4% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Gritstone Oncology Inc.
Aratana has an analyst consensus of Moderate Buy, with a price target consensus of $7.50.
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Based on Aratana’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $8.63 million. In comparison, last year the company had a GAAP net loss of $8.55 million.
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Aratana Therapeutics, Inc. engages in the development and commercialization of pet therapeutics. Its portfolio includes NOCITA, ENTYCE, and GALLIPRANT. NOCITA (bupivacaine liposome injectable suspension) acts as a local post-operative analgesia for cranial cruciate ligament surgery in dogs, and as a peripheral nerve block to provide regional post-operative analgesia following onychectomy in cats. ENTYCE(capromorelin oral solution) is intended for appetite stimulation in dogs. GALLIPRANT (grapiprant tablets) is for the control of pain and inflammation associated with osteoarthritis in dogs. The company was founded by Linda Rhodes and Steven St. Peter on December 1, 2010 and is headquartered in Leawood, KS.
