Page 1

> > Press Releases Details Elanco Announces Agreement to Acquire Kindred Biosciences 16 June 2021 • Elanco will acquire all outstanding stock of Kindred Biosciences at a price of $ 9.25 per share , or approximately $ 440 million , a premium of 52 % based on the 30 - day average . • Transaction brings three potential blockbusters in the development phase , complements existing pipeline , and augments monoclonal antibody R & D capabilities . • Increasing Investor Day revenue from innovation expectation by $ 100 million , to $ 600 million to $ 700 million by 2025 , with significant opportunity beyond the period . Differentiated , disruptive portfolio in atopic dermatitis and other chronic unmet needs expected to unlock upside to Elanco's long - term growth algorithm , with the potential to add a full percentage point of consistent annual revenue growth , starting in 2024 , and expand the company's margin over time . • Transaction and operating costs slightly dilutive to Elanco's reported and adjusted earnings per share in 2021 and 2022 ; net leverage goal below 3x extended three months to the end of the first quarter of 2024 . GREENFIELD , Ind . & SAN FRANCISCO -- ( BUSINESS WIRE ) -- Elanco Animal Health Incorporated ( NYSE : ELAN ) and Kindred Biosciences , Inc. ( Kindred Bio , NASDAQ : KIN ) today 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 . Kindred Bio'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 . " 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 CEO of Elanco . " It further accelerates our mix shift into pet health and advances our IPP strategy . Ultimately , we believe the combination positions Elanco to bring innovative solutions to veterinarians and pet owners in areas of unmet or under - served medical needs , fueling continued growth in the exciting pet therapeutic category and creating sustainable long - term value for shareholders . " The acquisition agreement builds on Elanco's existing relationship with Kindred Bio , which began with licensing the global commercial rights of Kindred Bio's late - stage treatment for canine parvovirus , and continues Elanco's proven approach as an innovation partner of choice .