Aratana reported total net revenues of $6.2 M and a net loss of $8.9M or $0.21 diluted loss per share.
| |
| [02-November-2017] |
| LEAWOOD, Kan., Nov. 2, 2017 /PRNewswire/ -- Aratana Therapeutics (NASDAQ: PETX), a pet therapeutics company focused on the licensing, development and commercialization of innovative therapeutics for dogs and cats, announced its third quarter 2017 financial results. For the quarter ended September 30, 2017, Aratana reported total net revenues of $6.2 million and a net loss of $8.9 million or $0.21 diluted loss per share. “With the launch of NOCITA, GALLIPRANT and now ENTYCE, Aratana is well-positioned to extend the relationships we have been building within specialty and general practice veterinary clinics over the past year,” explained Steven St. Peter, M.D., President and Chief Executive Officer of Aratana Therapeutics. “Aratana continues to remain focused on developing and commercializing innovative pet therapeutics, which we believe is the most underserved and attractive segment of the animal health market.” Recent Updates
Financial Results Aratana recorded $6.2 million in net revenues for the quarter ended September 30, 2017, which primarily includes approximately $4.0 million of product sales and $2.2 million in GALLIPRANT licensing and collaboration revenue. The product sales include $3.2 million related to GALLIPRANT product sales as finished goods under its supply arrangement with Elanco and $717 thousand in NOCITA net sales. For the nine-month period ended September 30, 2017, Aratana recorded $15.1 million in net revenues compared to $38.3 million in the first nine months of 2016, which primarily resulted from the licensing and collaboration revenues under the collaboration agreement with Elanco. The cost of product sales totaled $3.7 million in the third quarter of 2017 in comparison to $286 thousand for the corresponding period in 2016. The Company’s cost of product sales for the nine-month period ended September 30 totaled $10.5 million in 2017 compared to $2.0 million in 2016. The increase in the third quarter of 2017 and nine months ended September 30, 2017 was primarily due to GALLIPRANT supply sold to Elanco for commercial distribution, as well as cost of product sales of NOCITA. Research and development expenses totaled $3.2 million in the third quarter ended September 30, 2017 in comparison to $5.3 million for the quarter ended September 30, 2016. In the nine-month period ended September 30, 2017, research and development expenses totaled $11.6 million compared to $21.4 million for the corresponding period in 2016. The decrease in both the three and nine month periods was primarily due to lower milestone payments and fewer on-going pivotal studies as compared to the corresponding period in 2016. Selling, general and administrative expenses totaled $6.9 million in the third quarter ended September 30, 2017 and $21.3 million for the nine-month period ended September 30, 2017. Aratana expects selling, general and administrative expenses to remain relatively consistent through the remainder of 2017 with the corporate infrastructure substantially in place to support the commercialization of ENTYCE, NOCITA and the co-promotion of GALLIPRANT. In 2016, the Company’s selling, general and administrative expenses totaled $6.9 million and $19.6 million for the third quarter and nine-month period, respectively. As of September 30, 2017, Aratana had approximately $70.7 million in cash, cash equivalents, restricted cash and short-term investments, which the Company believes will allow it to fund the current operating plan and debt obligations through at least 2018. Webcast & Conference Call Details Interested participants and investors may access the audio webcast or use the conference call dial-in: 1 (866) 364-3820 (U.S.) A replay of the third quarter results teleconference will be available the same day of the event by approximately 11 a.m. ET and an audio webcast will be accessible for 90 days in the Aratana Investor Room. For a replay of the call, use the below dial-in and conference ID 10112622: 1 (877) 344-7529 (U.S.) IMPORTANT SAFETY INFORMATION ENTYCE® (capromorelin oral solution) is for use in dogs only. Do not use in breeding, pregnant or lactating dogs. Use with caution in dogs with hepatic dysfunction or renal insufficiency. Adverse reactions in dogs may include diarrhea, vomiting, polydipsia, and hypersalivation. Should not be used in dogs that have a hypersensitivity to capromorelin. Please see the full Prescribing Information for more detail. NOCITA® (bupivacaine liposome injectable suspension) is for use in dogs only. Do not use in dogs younger than 5 months of age, dogs used for breeding, or in pregnant or lactating dogs. Do not administer by intravenous or intra-arterial injection. Adverse reactions in dogs may include discharge from incision, incisional inflammation and vomiting. Avoid concurrent use with bupivacaine HCI, lidocaine or other amide local anesthetics. Please see the full Prescribing Information for more detail. About Aratana Therapeutics Forward-Looking Statements Disclaimer These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our history of operating losses and our expectation that we will continue to incur losses for the foreseeable future; failure to obtain sufficient capital to fund our operations; risks relating to the impairment of intangible assets; risks relating to the anticipated discontinuation of BLONTRESS and TACTRESS; risks pertaining to stockholder class action lawsuits; unstable market and economic conditions; restrictions on our financial flexibility due to the terms of our credit facility; our substantial dependence upon the commercial success of our therapeutics; development of our biologic therapeutic candidates is dependent upon relatively novel technologies and uncertain regulatory pathways, and biologics may not be commercially viable; denial or delay of regulatory approval for our existing or future therapeutic candidates; failure of our therapeutic candidates that receive regulatory approval to achieve market acceptance or achieve commercial success; product liability lawsuits that could cause us to incur substantial liabilities and limit commercialization of current and future therapeutics; failure to realize anticipated benefits of our acquisitions and difficulties associated with integrating the acquired businesses; development of pet therapeutics is a lengthy and expensive process with an uncertain outcome; competition in the pet therapeutics market, including from generic alternatives to our therapeutic candidates, and failure to compete effectively; failure to identify, license or acquire, develop and commercialize additional therapeutic candidates; failure to attract and retain senior management and key scientific personnel; our reliance on third-party manufacturers, suppliers and partners; regulatory restrictions on the marketing of our approved therapeutics and therapeutic candidates; our small commercial sales organization, and any failure to create a sales force or collaborate with third-parties to commercialize our approved therapeutics and therapeutic candidates; difficulties in managing the growth of our company; significant costs of being a public company; risks related to the restatement of our financial statements for the year ended December 31, 2013, and the identification of a material weakness in our internal control over financial reporting; changes in distribution channels for pet therapeutics; consolidation of our veterinarian customers; limitations on our ability to use our net operating loss carryforwards; impacts of generic products; safety or efficacy concerns with respect to our therapeutic candidates; effects of system failures or security breaches; delay or termination of the development of grapiprant therapeutic candidates and commercialization of grapiprant products that may arise from termination of or failure to perform under the collaboration agreement and/or the co-promotion agreement with Elanco; failure to obtain ownership of issued patents covering our therapeutic candidates or failure to prosecute or enforce licensed patents; failure to comply with our obligations under our license agreements; effects of patent or other intellectual property lawsuits; failure to protect our intellectual property; changing patent laws and regulations; non-compliance with any legal or regulatory requirements; litigation resulting from the misuse of our confidential information; the uncertainty of the regulatory approval process and the costs associated with government regulation of our therapeutic candidates; failure to obtain regulatory approvals in foreign jurisdictions; effects of legislative or regulatory reform with respect to pet therapeutics; the volatility of the price of our common stock; our status as an emerging growth company, which could make our common stock less attractive to investors; dilution of our common stock as a result of future financings; the influence of certain significant stockholders over our business; and provisions in our charter documents and under Delaware law could delay or prevent a change in control. These and other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on March 14, 2017, along with our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Contacts For media inquiries:
ARATANA THERAPEUTICS, INC. Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2017 2016 2017 2016 ---- ---- ---- ---- Revenues Licensing and collaboration revenue $2,192 $ - $3,899 $38,151 Product sales 3,971 40 11,217 108 ----- --- ------ --- Total revenues 6,163 40 15,116 38,259 ----- --- ------ ------ Costs and expenses Cost of product sales 3,690 286 10,475 2,046 Royalty expense 441 19 1,117 57 Research and development 3,220 5,334 11,574 21,386 Selling, general and administrative 6,910 6,924 21,323 19,623 Amortization of intangible assets 85 91 235 281 Impairment of intangible assets - - - 2,780 --- --- --- ----- Total costs and expenses 14,346 12,654 44,724 46,173 ------ ------ ------ ------ Loss from operations (8,183) (12,614) (29,608) (7,914) Other income (expense) Interest income 138 116 311 276 Interest expense (870) (859) (2,601) (2,554) Other expense, net (5) (14) (14) (50) --- --- --- --- Total other expense (737) (757) (2,304) (2,328) ---- ---- ------ ------ Net loss $(8,920) $(13,371) $(31,912) $(10,242) ======= ======== ======== ======== Net loss per share, basic and diluted $(0.21) $(0.38) $(0.80) $(0.29) Weighted average shares outstanding, basic and diluted 42,445,553 35,092,686 39,820,573 34,837,169
ARATANA THERAPEUTICS, INC. Consolidated Balance Sheets (Unaudited) (Amounts in thousands) September 30, 2017 December 31, 2016 ------------------ ----------------- Assets Current assets: Cash, cash equivalents and short-term investments $70,343 $88,303 Accounts receivable, net and prepaid expenses and other current assets 11,275 2,109 Inventories 9,041 11,130 Total current assets 90,659 101,542 Property and equipment, net 1,271 1,948 Goodwill 41,023 39,382 Intangible assets, net 11,202 7,639 Restricted cash 350 350 Other long-term assets 506 545 Total assets $145,011 $151,406 ======== ======== Liabilities and Stockholders’ Equity Current liabilities: Accounts payable, accrued expenses $7,359 $13,263 Licensing and collaboration commitment 7,000 7,000 Current portion - loans payable 12,156 14,413 Other current liabilities - 12 --- --- Total current liabilities 26,515 34,688 Loans payable, net 24,691 25,775 Other long-term liabilities 71 540 --- --- Total liabilities 51,277 61,003 ------ ------ Total stockholders’ equity 93,734 90,403 ------ ------ Total liabilities and stockholders’ equity $145,011 $151,406 ======== ========
View original content with multimedia:http://www.prnewswire.com/news-releases/aratana-therapeutics-reports-third-quarter-2017-financial-results-300548612.html SOURCE Aratana Therapeutics, Inc. | ||
Company Codes: NASDAQ-NMS:PETX |
