ELAN - This Acquisition Could Open a Whole New Market to Elanco
Elanco Animal Health (NYSE: ELAN) just announced another acquisition after its deal to acquire Bayer Animal Health last year . This time, the animal health company is purchasing Kindred Biosciences (NASDAQ: KIN) for $440 million. Kindred focuses on dermatology treatments for dogs and cats. Elanco doesn't have a dermatology portfolio today, and management hopes this acquisition can catapult it into a growing new area of pet healthcare.
A small pet pharmaceutical company, Kindred has a pipeline of drugs under development but no products in the commercialization phase, meaning it does not yet generate meaningful revenue or earnings. However, the company's management believes that three of its drugs in development have potential to bring in more than $100 million in annual revenue each.
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This Acquisition Could Open a Whole New Market to Elanco