Analyst Douglas Tsao elaborated that Aratana Therapeutics has provided details about commercial initiatives associated with its lead products, which have enhanced his confidence in the portfolio.
However, Tsao also mentioned that despite “the maturation of PETX's towards commercialization, PETX shares have continued to underperform,” while also stating that “clinical catalysts for the lead three assets have provided only ephemeral relief for shares, triggering investor frustration and obviously many to give up.”
Potential Ahead
Tsao believes that it is worthwhile staying with the stock, given that there is potential for lead assets to generate sales of more than $200 million. “We feel particularly bullish for Galliprant which launches in a large, established market with a differentiated profile,” Tsao stated.
On the other hand, when launched, Entyce would be the only FDA-approved drug for inappetence, catering to a population for about 4.1 million dogs. Notica is also poised to capitalize on the post-surgery pain market.
According to the Barclays report, about 6 million dogs undergo painful surgery each year in the United States. “Alternative NSAIDs and opioids pose tolerability and scheduling concerns, unlike the non-opioid formulation of Nocita,” the report mentioned.
Aratana Therapeutics is expected to look at promoting its products overseas going forward, through partnership. “Mgmt seems patient, waiting for signoff from FDA on three major clinical sections of marketing applications, before signing a deal,” Tsao added.
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