Two years after completing the separation from Eli Lilly and less than a year after completing the $ 6.9 billion acquisition of Bayer Animal Health, Elanco has another bone.
Elanco Animal Health, based in Greenfield, Indiana, will purchase Kindred Biosciences for approximately $ 440 million to strengthen its pipeline in the pet health market. KindredBio will provide Elanco with three potential dermatology blockbusters expected to hit the market by 2025, and will provide Elanco with an additional $ 100 million in innovation revenue by that year.
Jeff Simmons, CEO and President of Elanco, said: statement..
KindredBio’s monoclonal antibody R & D program may also give Elanco room to grow in chronic diseases such as canine parvovirus.
Elanco has already deprived Kindred Bio of its worldwide commercial rights to late parvovirus treatment. A treatment called KIND-030 Proven According to KindredBio, dogs infected with parvovirus have a survival rate of 100%, while dogs treated with placebo have a survival rate of 43%, KindredBio said on June 2.
“With 100% effectiveness, we believe KIND-030 has the potential to revolutionize the care of these dogs,” said Dr. Richard Chin, MD, CEO of Kindred Bio. statement Early this month.
Canine parvovirus treatment could be a lucrative asset for Elanco, as KindredBio claims that there are currently no treatments available.
“This deal with world-renowned veterinary leader Elanco will maximize the impact of our innovative pipeline on improving pet life,” Chin said in a statement on Wednesday’s deal. Said in.
The $ 9.25 per share transaction is a 52% premium based on a 30-day average and is covered by prepaid debt.
Investors clearly like the deal, pushing Kindred Bio’s stake up 45% to $ 9.19 at 11:37 EST. Elanco was trading 3% higher at $ 35.90.
With a history of more than 65 years, Elanco has expanded its pipeline ever since. go on one’s own Animal hygiene companies have an extensive portfolio of vaccines for dogs, cats, livestock and poultry, pet remedies and other products and are looking to expand.
Last August, Elanco completed its acquisition of Bayer Animal Health. This is a deal that gives Elanco the rights to five expected launch equivalents, medication and delivery technology, and Bayer’s Crop Science R & D pipeline.
In addition, in July 2019, Elanco Done Acquisition of Aratana Therapeutics, a dog and cat treatment company. Under this agreement, Elanco has obtained a dog’s non-steroidal anti-inflammatory drug for osteoarthritis.
Larger pet health spaces have become more active in recent months. Whitebridge Pet Brands completed the acquisition of supplement maker Grizzly Pet Products in March, and Petco Health and Wellness went public in January after its first listing in 1994.
https://www.fiercebiotech.com/biotech/elanco-continues-pet-health-acquisition-spree-deal-to-buy-kindred-biosciences It’s a dog-eating dog world: Elanco snaps Kindred Bio for $ 440 million