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Aratana revenues climb on back of strong Galliprant performance

Nov 02, 2018 - Animal Pharm
By Sian Lazell

Aratana Therapeutics has seen sizable revenue growth in the third quarter of 2018, driven by a significant commercial milestone for its Galliprant canine osteoarthritis product.

Revenues in Q3 totaled $21.6 million, up 250% compared to the same time last year. Licensing and collaboration revenue for Galliprant (grapiprant tablets) from Elanco – who Aratana has a collaboration agreement with for the product – amounted to $18.4m, including a $15m commercial milestone for net sales of the treatment exceeding $35m.

During the third quarter of 2018, Elanco introduced re-supply of the 100mg units of Galliprant. Aratana said according to third-party market research conducted in August 2018, Galliprant continues to grow market share and is the leading branded non-steroidal anti-inflammatory drug prescribed by veterinarians in the US. Under its agreement with Elanco, Aratana is entitled to two additional payments of up to $60m upon the achievement of certain sales milestones.

Revenues in Q3 also included $1.9m in net product sales of Aratana's Nocita post-operative analgesic and $1.3m in net product sales of the firm's Entyce appetite stimulant.

Additionally, R&D expenses were down significantly in Q3 2018, decreasing 53% to $1.5m. Selling, general and administrative expenses were up slightly by 1.5% to $7m. The firm also posted net income of $8.8m in Q3 2018, compared to a net loss of $8.9m in the third quarter of last year.

Aratana's Q3 performance is a marked improvement on the previous quarter. In Q2, the company recorded sales of $4.9m, representing a year-on-year drop of 6%.

Nine-month mark witnesses strong sales hike

Aratana also saw a strong increase in revenues for the first nine months of 2018, posting revenues of $30.5m (+102%).

R&D expenses declined considerably to $5.3m (-54%), whilst selling, general and administrative expenses remained flat at $21.4m. Net loss for the first nine months was significantly lower than the previous year, totaling $6m (-81%).

As of September 30, 2018, Aratana had approximately $56.4m in cash, cash equivalents, restricted cash and short-term investments. The firm said it expects this figure to be approximately $60m at the end of 2018.

In an update, Aratana said it plans to continue its efforts to build the inappetence market through education and extending duration of Entyce.

The company also anticipates commencing the regulatory process for a 10ml vial size of Nocita, which is currently available in a 20ml vial size. If approved, the firm said the 10ml vial size could be available to veterinarians in the fall of 2019.

In August, Aratana submitted the 'Target Animal Safety' technical section to the US FDA's Center for Veterinary Medicine for AT-002 (capromorelin) for cats. The firm expects to complete target enrolment for the pivotal field effectiveness study evaluating the therapeutic candidate for weight management in cats with chronic kidney disease in mid-2019. The firm anticipates submitting the technical section for chemistry, manufacturing and controls in 2018.

Just recently, Aratana saw its shares jump slightly after rumors emerged that the firm is eyeing a potential sale.

According to Dealreporter, the firm has signed up Barclays as a financial advisor to explore strategic options. A specific source for the rumor was not cited.

Reprinted with permission of Animal Pharm News




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