Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) says it has acquired California-based Kindred Biosciences Inc. (Nasdaq: KIN) in a deal valued at approximately $440 million. KindredBio is a biopharmaceutical company focused on developing novel pet therapeutics.
Elanco says the acquisition further accelerates Elanco’s expansion in the companion pet health market.
The KindredBio website says it is trying to narrow a chasm between human and animal medicine. It says drugs from the human pharmaceuticals field could possibly be developed for companion animals, such as human drugs that have been abandoned.
“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 chief executive officer of Elanco.
Two weeks ago, Elanco announced it had obtained the global commercial rights of KindredBio’s late-stage treatment for canine parvorvirus, a contagious virus that has a mortality rate of 90% in dogs. There is currently no commercial treatment. However, the company says the treatment is being presented to the U.S. Department of Agriculture this month for its review. If approved, Elanco hopes to take it to market by the end of the year.
“From the beginning, we have been focused at KindredBio on bringing the best medicines to our animal family members,” said KindredBio co-founder and CEO Richard Chin. 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.”
Elanco says the deal will allow the company to continue its expansion into e-commerce and retail sectors. Under the terms of the agreement, Elanco will acquire all outstanding stock of Kindred Biosciences for $9.25 per share, or about $440 million. The companies expect to close the deal in the third quarter of 2021.