News

May 29, 2023

Elanco acquiring pet biopharma company KindredBio for $440 million

Greenfield-based Elanco Animal Health Inc. has entered into a definitive agreement to purchase Kindred Biosciences, a biopharmaceutical company focused on developing novel pet therapeutics, the

Greenfield-based Elanco Animal Health Inc. has entered into a definitive agreement to purchase Kindred Biosciences, a biopharmaceutical company focused on developing novel pet therapeutics, the company announced Wednesday.

Under the terms of the deal, Elanco will acquire all outstanding stock of Kindred Biosciences at a price of $9.25 per share, or approximately $440 million, according to a news release. Elanco intends to fund the acquisition with pre-payable debt.

The company said the acquisition further accelerates its expansion in the pet health market, particularly its presence in the fast-growing billion-dollar dermatology category.

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“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,” Jeff Simmons, president and CEO, said in the news release. “It further accelerates our mix shift into pet health and advances our IPP strategy.

The transaction, which follows Elanco's acquisition of Bayer Animal Health, is expected to close in the third quarter of this year. It is subject to approval by KindredBio’s shareholders and antirust laws, according to the news release. KindredBio’s Board has approved the proposed acquisition.

"Kindred Biosciences’ monoclonal antibody pipeline and capabilities are additive and complementary to what we’ve built within Elanco,” Aaron Schacht, Elanco's executive vice president innovation, regulatory and business development, said in the release. “This combination will bolster our opportunity for leadership in atopic dermatitis and allow us to deliver innovation of novel biologic therapeutics to treat other unmet disease challenges in pets.”

Elanco also reaffirmed second quarter 2021 revenue public estimates of $1.2 million to $1.255 million, and full year 2021 revenue public estimates of $4.670 million to $4.7 million.

Contact IndyStar reporter Alexandria Burris at [email protected] or call 317-617-2690. Follow her on Twitter: @allyburris.