Aratana Therapeutics — Merger or Acquisition (April 2019)
18 slides from Aratana Therapeutics's merger presentation, Apr 26, 2019
Slide 1: Important Information for Investors and Shareholders
Important Information Important Information for Investors and Shareholders This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which s
Slide 2: Today's Announcement
3 Today’s Announcement Acquisition of Collaboration with Expanding Elanco commercial presence into the Specialty Vet channel
Slide 3: Strategic Actions Advance Our Three Pillar IPP Strategy
4 Strategic Actions Advance Our Targeted, Three Pillar IPP Strategy Enhance Companion Animal Therapeutics Bolstering Pipeline Elanco captures full value of Galliprant Adds additional marketed products Expands into Oncology Adds development projects to pipeline Drives continued confidence in long-ter
Slide 4: Deal Overview
5 Unanimous acceptance by the Aratana Board Stock portion of the transaction valued at ~$234M Aratana shareholders receive*: 0.1481 Elanco shares, representing $4.75 per Aratana share Contingent Value Right: $0.25 per share based on certain performance metrics Deal Overview Closing: Anticipating lat
Slide 5: Marketed Products
6 Marketed Products First-in-class oral therapeutic for appetite stimulation in dogs Prevalent condition Become part of Elanco primary care portfolio to expand awareness and increase uptake Highly differentiated local post-surgical analgesic for dogs and cats Further broadens Elanco’s leading pain p
Slide 6: Collaboration
7 Collaboration Commercialization rights to Tanovea-CA1 Work with VetDC on the on-going trials in support of full approval First FDA-conditionally approved canine lymphoma drug Deal Overview
Slide 7: Cancer: ~3M dogs diagnosed each year
8 Cancer: ~3M dogs diagnosed each year, lymphoma is most common non-skin cancer in dogs1 ~300K dogs per year receive chemotherapy or immunotherapy for cancer1 1 in 4 dogs will develop cancer during their lifetime2 In a study of 38 dogs: 100% response rate when used as a first-line treatment 64% resp
Slide 8: Compelling Value
9 Compelling Value Galliprant: Gives Elanco full ownership of outstanding product Specialty Vet Channel Entry: Valuable channel expansion with combination of Elanco’s therapeutics portfolio, R&D focus in pain, dermatology and diseases of aging with Aratana and VetDC Product Acquisition: 3 new market
Slide 9: Compelling Value
Compelling Value Galliprant: Specialty Vet Channel Entry: Gives Elanco full ownership of outstanding Valuable channel expansion with combination product of Elanco's therapeutics portfolio, R&D focus in pain, dermatology and diseases of aging with Aratana and VetDC Product Acquisition: Innovation Pip
Slide 10: Entyce
11 Entyce Only FDA-approved therapeutic for appetite stimulation in dogs Proven improvement in appetite and weight gain Loss of appetite can cause: Weight loss Muscle wasting Frailty Delayed recovery Quality of life reduction Expand promotion to ‘primary care’ customers
Slide 11: Nocita
12 Nocita Local analgesic for post-surgical pain in dogs and cats Relief up to 72 hours Bridge pain control from vet to home Complimentary to Elanco’s existing pain portfolio
Slide 12: Elanco's first cancer medicine
13 Elanco’s first cancer medicine Conditionally approved in 2017 Canine lymphoma is the most common blood cancer in dogs Treatment Regimen IV once every 21 days for up to 5 cycles vs. “CHOP” – 17 cycles over 25 weeks Early Indications* 100% response rate as first-line treatment 64% response rate in
Slide 13: Innovation Pipeline
14 Innovation Pipeline Adding early development programs for pain, atopic dermatitis, cancer and complications from feline kidney disease. AT-014 Canine osteosarcoma vaccine AT-018 (timapiprant) Investigational agent for atopic dermatitis in dogs AT-019 Next generation opportunity to follow Gallipra
Slide 14: Innovation Pipeline
V RVARATANA, Innovation Pipeline Adding early development programs for pain, atopic dermatitis, cancer and complications from feline kidney disease. © AT-002 Cat weight loss with chronic kidney disease AT-018 (timapiprant) Investigational agent for atopic dermatitis in dogs AT-019 Next generation op
Slide 15: Financial Overview
16 Financial Overview * Represents date on which exchange ratio set; ELAN $32.07, PETX 3.41 closing prices. Financial Impact: No expected dilution to Non-GAAP earnings in 2019 Elanco shares issuable constitute ~2% of Elanco shares outstanding Aratana shareholders receive 0.1481 Elanco shares and con
Slide 16: Sources of Value
17 Sources of Value Save cash on milestone and royalties otherwise owed Aratana Drive greater uptake of Entyce and Nocita through Primary Care Vet promotion Enter Specialty Vet channel with an enhanced product portfolio and experienced Specialty sales force Expand Innovation pipeline Transactions al
Slide 17: Sources of Value
Sources of Value + Save cash on milestone and royalties otherwise owed Aratana + Drive greater uptake of Entyce and Nocita through Primary Care Vet promotion + Enter Specialty Vet channel with an enhanced product portfolio and experienced Specialty sales force + Expand Innovation pipeline Transactio
Slide 18: Q&A
Q&A
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