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Aratana Therapeutics acquires Vet Therapeutics for $30M cash, 625K shares

Aratana Therapeutics announced that it has entered into a merger agreement providing for the strategic acquisition of Vet Therapeutics, a San Diego-based company with a proprietary antibody-based biologics platform. Under the agreement, Aratana plans to continue to advance the pipeline of high value biologic drugs, including its lymphoma franchise. Importantly, the acquisition of Vet Therapeutics is expected to significantly accelerate Aratana's pathway toward becoming a commercial-stage pet therapeutics company. Under the terms of the merger agreement for the Vet Therapeutics acquisition, Aratana agreed to pay to Vet Therapeutics' equity holders at the closing $30M in cash, issue 625,000 shares of common stock and issue a promissory note for $3M with a maturity date of December 31, 2014, subject to prepayment in the event of specified equity financings. Aratana also agreed to pay up to $5M in contingent cash consideration upon the achievement of certain regulatory and manufacturing milestones for the B-cell lymphoma product. The board and stockholders of Vet Therapeutics have approved the merger. The closing is expected to occur on Tuesday, October 15. Upon the closing of the acquisition, Vet Therapeutics will become a wholly owned subsidiary of Aratana, and is expected to continue to operate out of its San Diego location. Aratana also announced that it has entered into a share purchase agreement providing for a $19.75M private placement of shares of its common stock. The company agreed to issue 1.23M shares for a purchase price of $16.00 per share. The financing is expected to close on or prior to October 17.