ELAN - Why Kindred Biosciences Stock Skyrocketed Today
Shares of Kindred Biosciences (NASDAQ: KIN) soared 46% on Wednesday after the pet-focused biotech company said it agreed to be acquired by Elanco Animal Health (NYSE: ELAN) .
The deal values KindredBio at roughly $440 million, or $9.25 per share. That's a premium of nearly 46% from the stock's closing price on Tuesday.
KindredBio will help to bolster Elanco's pet therapeutic pipeline in fast-growing markets such as dermatology. The combination is also projected to strengthen Elanco's relationships with veterinary clinics. In all, Elanco's management sees the deal boosting the animal health leader's revenue by as much as $100 million by 2025, while also improving its profit margins over time.
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Why Kindred Biosciences Stock Skyrocketed Today