Kindred Biosciences (NASDAQ: KIN) shares are rallying premarket on Wednesday after it was announced that Elanco (NYSE: ELAN) will acquire the biopharmaceutical company in a deal worth approximately $440 million.
Elanco will pay $9.25 per share, a premium of 52% based on the 30-day average.
Elanco said the deal further accelerates its “expansion in the attractive pet health market, particularly advancing Elanco’s presence in the fast-growing billion-dollar dermatology category.”
The company said they feel Kindred Biosciences brings three “potential dermatology blockbusters”, which are expected to launch through 2025, along with additional R&D programs for other chronic disorders and unmet needs.
The transaction is expected to close in the third quarter of this year.
“This highly complementary combination is focused in one of the most exciting spaces in pet health, and one where we see a strategic imperative to build a differentiated competitive offering,” said Jeff Simmons, president and CEO of Elanco.
“It further accelerates our mix shift into pet health and advances our IPP strategy. Ultimately, we believe the combination positions Elanco to bring innovative solutions to veterinarians and pet owners in areas of unmet or under-served medical needs, fueling continued growth in the exciting pet therapeutic category and creating sustainable long-term value for shareholders.”
Kindred Biosciences share price is up 44.64% premarket at $9.17. Elanco's share price is up 0.98% at $35.15.
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