Elanco Animal Health acquires Kindred Biosciences
According to the agreement, Elanco will acquire all outstanding stock of Kindred BioSciences for $9.25 per share, or approximately $440 million, a premium of 52% based on the 30-day average.
Elanco Animal Health Inc (Elanco) announced yesterday its acquisition of Kindred Biosciences, Inc (KindredBio), a biopharmaceutical company focused on developing novel pet therapeutics based on validated human targets. This acquisition will aid in accelerating Elanco’s expansion within the pet health market by enhancing the company’s presence in the fast-growing billion-dollar dermatology sector.
According to a company release, KindredBio offers 3 potential dermatology blockbusters anticipated to launch through 2025, including several additional R&D programs for more chronic disorders and unmet needs such as the canine parvovirus.
Along with Elanco’s own organic efforts, KindredBio’s innovative pipeline will increase Elanco’s ability to launch products, gain share, and grow in the dermatology market through fully accretive revenue dollars. Elanco predicts the combination will add nearly $100 million to its previously stated innovation revenue expectation of $500 million to $600 million by 2025.
“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,” says Jeff Simmons, president, and CEO of Elanco in the release.
“It further accelerates our mix shift into pet health and advances our IPP strategy," he adds. "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.”
The relationship between the 2 companies initiated when Elanco licensed the global commercial rights of KindredBio’s late-stage treatment for canine parvovirus.
“From the beginning, we have been focused at KindredBio on bringing the best medicines to our animal family members. With this transaction with Elanco, a widely respected leader in veterinary medicine with global reach, we will maximize the impact our innovative pipeline will have on improving the lives of pets,” says Richard Chin, CEO, and cofounder of KindredBio.
“This announcement is validation of KindredBio’s achievements as one of the world’s first veterinary biopharmaceutical companies, recognizing our track record in drug development and remarkably talented team,” says Denise Bevers, board director and cofounder of KindredBio. “KindredBio looks forward to continuing our mission to transform veterinary medicine as part of the Elanco family.”
Additionally, this agreement will expand Elanco’s omnichannel leadership and complement the company’s e-commerce and retail position by increasing its presence in a leading therapeutic category and keeping the veterinarian at its center.
Learn more about Elanco and its mission here.