- Elanco Animal Health (NYSE:ELAN) inks agreement to acquire Kindred Biosciences (NASDAQ:KIN), up 43% premarket which will further accelerates Elanco's expansion in pet health market.
- Under the terms of the deal, Elanco will acquire all outstanding stock of Kindred at $9.25/share, or ~$440M.
- Kindred Bio brings three potential dermatology blockbusters expected to launch through 2025, as well as a number of additional R&D programs for other chronic disorders, including canine parvovirus.
- Elanco anticipates the combination will add ~$100M to its innovation revenue expectation of $500M to $600M by 2025, with significant opportunity beyond the period.
- The transaction is expected to close in Q3 2021.
- Elanco also reaffirmed Q2 and FY21 revenue guidance of $1,225M to $1,255M (consensus $1.24B), and $4,670M to $4,710M (consensus $4.7B), respectively.
- ELAN will host a conference call today at 8:00 am ET to discuss the announcement.
