KANSAS CITY, Kan. and BOSTON, Aug. 12, 2013 /PRNewswire/ -- Aratana Therapeutics, Inc. (NASDAQ: PETX) today announced its financial results for the second quarter of 2013, product development updates and the continued build-out of its pipeline.
For the quarter ended June 30, 2013, the Company reported a net loss of $4.2 million, or $(4.62) per share, compared with a net loss of $3.1 million, or $(10.21) per share for the quarter ended June 30, 2012. For the six months ended June 30, 2013, the Company reported a net loss of $8.3 million, or $(9.35) per share, compared with a net loss of $5.8 million, or $(19.15) per share for the six months ended June 30, 2012.
As of June 30, 2013, the Company had a total of approximately $20.2 million in cash, cash equivalents and marketable securities.
This number reflects the prepayment in June of $2.7 million of expenses related to the Company's initial public offering. In July, the Company completed the initial public offering which, together with the exercise of the underwriters' overallotment, provided $34.2 million in net proceeds. The Company's total cash and cash equivalents post-IPO was approximately $57.1 million.
"We are aggressively moving forward following our recent IPO with a sharp focus on our clinical programs and expanding our product pipeline," said Dr. Steven St. Peter, President and CEO of Aratana Therapeutics. "We are pleased to share details on our progress and plans for the future."
Development Programs and Upcoming Milestones
Business Development Update
Upcoming Industry and Investor Events
Revenues and ExpensesAratana is a development stage therapeutics company. The Company had no revenue for the quarter and six months ended June 30, 2013, and no revenue for the quarter and six months ended June 30, 2012.
Research and development expenses totaled $2.4 million for the three months ended June 30, 2013 and $4.5 million for the six months ended June 30, 2013. This compares to $1.9 million for the three months ended June 30, 2012 and $3.7 million for the six months ended June 30, 2012. The increase in research and development expenses for the three and six month periods of 2013 compared to the comparable periods in 2012 is due primarily to increased personnel in the areas of drug development, CMC and manufacturing, as well as continuing development activity for both our pain treatment program (AT-001) and our inappetence program (AT-002). In addition, in the quarter ended June 30, 2013, we began development of our post-operative pain program (AT-003), and entered into our first Option Program agreement.
General and administrative expenses totaled $1.2 million for the three months ended June 30, 2013 and $2.5 million for the six months ended June 30, 2013. This compares to $0.6 million for the three months ended June 30, 2012, and $1.1 million for the six months ended June 30, 2012. The increases are primarily associated with the build-out of our executive team, our expansion into office space in Boston, increased business development activities, one-time costs associated with the IPO and the ongoing costs associated with becoming a public company.
2013 Financial GuidanceThe Company expects to end the year with between $45 and $50 million in cash and cash equivalents, which the Company expects to be sufficient to fund operations to at least the end of 2015.Conference Call and WebcastDate:
Tuesday, August 13, 2013Time:
8:00 a.m. Eastern TimeConference call numbers:Domestic:
(412) 858-4600Webcast: via the Investor Relations section of the Company's website at aratana.investorroom.com
A replay of the conference call and webcast will be available beginning approximately two hours after the completion of the call through November 10, 2013.
About Aratana Therapeutics
Aratana Therapeutics is a development-stage biopharmaceutical company focused on the licensing, development and commercialization of innovative medications for pets, or pet therapeutics. Aratana believes that it can leverage the investment in the human biopharmaceutical industry to bring therapeutics to pets in a capital and time efficient manner. Aratana's strategy is to in-license proprietary compounds from human biopharmaceutical companies and to develop these product candidates into therapeutics specifically for use in pets. Aratana believes the development and commercialization of these therapeutics will permit veterinarians and pet owners to manage pets' medical needs safely and effectively, resulting in longer and improved quality of life for pets. For more information, please visit www.aratana.com.
Forward-Looking Statements DisclaimerThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our expected future cash balance and liquidity; expectations regarding development programs, trials, studies, and approval; expectations regarding in-license initiatives; and expectations regarding the Company's plans and opportunities.
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 limited operating history and expectations of losses for the foreseeable future; our lack of commercial sales; our failure to obtain any necessary additional financing; our substantial dependence on the success of our current compounds, AT-001, AT-002 and AT-003, which are still in development; our inability to identify, license, develop and commercialize additional product candidates; our inability to obtain regulatory approval for our existing or future product candidates; the lack of commercial success of our current or future product candidates; uncertainties regarding the outcomes of studies regarding our products; effects of competition; our failure to attract and keep senior management and key scientific personnel; our complete reliance on third-party manufacturers and third parties to conduct all our target animal studies and certain other development efforts; our lack of a sales organization; our significant costs of operating as a public company; our lack of effective internal control over financial reporting; changes in distribution channels for pet therapeutics; consolidation of our customers; impacts of generic products; unanticipated safety or efficacy concerns; our limited patents and patent rights; our failure to comply with our intellectual property license obligations; our infringement of third party patents and challenges to our patents or rights; our failure to comply with regulatory requirements; our failure to report adverse medical events related to our products; legislative or regulatory changes; the volatility of our stock price; our status as an "emerging growth company," as defined in the JOBS Act; the potential for dilution if we sell shares of our common stock in future financings; the significant control over our business by our principal stockholders and management; the potential that a significant portion of our total outstanding shares could be sold into the market in the near future; effects of anti-takeover provisions in our charter documents and under Delaware law; and our intention not to pay dividends. These and other important factors discussed under the caption "Risk Factors" in the Company's final prospectus filed with the Securities and Exchange Commission, or SEC, on June 27, 2013 relating to its Registration Statement on Form S-1, and 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. 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.
Tiberend Strategic Advisors, Inc.
Joshua Drumm, Ph.D. (investors)
firstname.lastname@example.org; (212) 375-2664Andrew Mielach (media)
email@example.com; (212) 375-2694 ARATANA THERAPEUTICS, INC.STATEMENT OF OPERATIONS(in thousands, except per share amounts)Three Months EndedJune 30,Six Months EndedJune 30,2013201220132012Revenue$
-Operating expensesResearch and development
2,4691,9294,5833,680General and administrative
1,2586232,4841,121Total operating expenses
3,7272,5527,0674,801Loss from operations(3,727)(2,552)(7,067)(4,801)Other income (expense)Interest income
343-411-Total other income (expense)
28733347Net loss and comprehensive loss$
(4,794)Unaccreted dividends on convertible preferred stock
(808)(522)(1,581)(966)Net loss attributable to common stockholders$
(5,760)Net loss per share attributable to common stockholders basic and diluted
(19.15)Weighted average shares outstanding, basic and diluted
918,397300,841889,528300,841 ARATANA THERAPEUTICS, INC.CONDENSED BALANCE SHEETS(in thousands, except per share amounts)June 30, 2013December 31, 2012AssetsCurrent assets:Cash and cash equivalents
3,973Short-term marketable securities
5,8896,382Receivable from stockholder
-650Prepaid expenses and other current assets
2,87625Total current assets
23,11421,030Property and equipment, net
141141Other long-term assets
21,222Liabilities and Stockholders' DeficitCurrent liabilities:Accounts payable
1,1281,361Current portion loan payable
800800Other current liabilities
591562Total current liabilities
4,310-Other long-term liabilities
9,3923,580Total stockholders' deficit
(28,032)(21,555)Total liabilities stockholders' equity
|SOURCE Aratana Therapeutics, Inc.|
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