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PETX NEWS $8.00

"Under terms of the deal, Elanco will have global exclusive rights to develop, market and commercialize Galliprant while they help co-promote Galliprant in the U.S. with Aratana. For these rights, Aratana will receive an upfront payment of $45 million, with $83 million available in achievement of various milestones.

Aratana Therapeutics CEO Dr. Steven St. Peter said, "We believe that this collaboration with Elanco, a leading animal health company, is a watershed event for the emerging pet biotech sector and further validates our focus on the pet therapeutics opportunity."

At a market cap of $259 million, the $45 million deal equates to roughly ~17 percent the size of Aratana. Shares resumed at 4:35 p.m. ET and immediately spiked a high of $8.78. At the time of publication, shares were up 13 percent to $7.81"