Kindred Biosciences Inc (NASDAQ:KIN) continues to move up in the pre-market session on Wednesday and is the leading gainer. The stock is up 33% over the past month.
Major Trigger:
Elanco Announces Agreement to Acquire Kindred Biosciences
Key Highlights:
- Kindred Biosciences announced the parties have entered into a definitive agreement for Elanco to acquire KindredBio, a biopharmaceutical company focused on developing novel pet therapeutics based on validated human targets. The acquisition further accelerates Elanco’s expansion in the attractive pet health market, particularly advancing Elanco’s presence in the fast-growing billion-dollar dermatology category.
- KindredBio brings three potential dermatology blockbusters expected to launch through 2025, as well as a number of additional R&D programs for other chronic disorders and unmet needs, including canine parvovirus.
- KindredBio’s innovative pipeline – added to Elanco’s own organic efforts – meaningfully augments Elanco’s ability to launch products, gain share, and grow in the dermatology market through fully accretive revenue dollars. Elanco anticipates the combination will add approximately $100 million to its previously stated innovation revenue expectation of $500 million to $600 million by 2025, with significant opportunity beyond the period.
- The acquisition agreement builds on Elanco’s existing relationship with KindredBio, which began with licensing the global commercial rights of KindredBio’s late-stage treatment for canine parvovirus, and continues Elanco’s proven approach as an innovation partner of choice.
Market Reaction
As of 7:45, KIN stock soared by $2.82 or 44.48% to $9.16 So far more than 1.36 million shares have exchanged hands.
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