Elanco completes purchase of pet therapeutics company
GREENFIELD, Ind. (Inside INdiana Business) — Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) says it has completed its acquisition of California-based Kindred Biosciences Inc. (Nasdaq: KIN) in a deal valued at approximately $440 million. Elanco says the acquisition, which was first announced in June, further accelerates its expansion in the companion pet health market, particularly the dermatology category.
The company says canine dermatitis is one of the leading reasons pet owners take their dogs to the veterinarian. Elanco says the acquisition brings with it the potential to launch several new dermatology treatments over the next several years.
“The combination further shifts our mix into the attractive pet health sector with up to four launches from our combined pipeline by 2025 in the rapidly expanding dermatology category, which is expected to fuel continued growth and create sustainable long-term value for shareholders,” said Jeff Simmons, Elanco president and chief executive officer.
Simmons says the transaction also builds on the existing relationship between the two companies, including the prior licensing of the global commercial rights of KindredBio’s late-stage treatment for canine parvovirus. Parvo is a contagious virus that has a mortality rate of 90% in dogs. There is currently no commercial treatment. If the new treatment receives regulatory approval, Elanco says it plans to take it to market by the end of the year.
Under the terms of the agreement, Elanco will acquire all outstanding stock of Kindred Biosciences for $9.25 per share, or about $440 million.