Shares of the Kindred Biosciences, Inc. (KIN) stock continuing the rising trend in pre-market today on June 16, 2021, following the announcement of the acquisition agreement between Kindred Biosciences and Elanco Animal Health Incorporated (NYSE: ELAN). The KIN stock price saw an uptrend of 48.58% to reach $9.42 a share at the time of this writing. The stock went up by 4.62% at the previous closing. Let’s take a closer look.
Acquisition Agreement between Elanco and Kindred:
According to the agreement of Elanco with Kindred, all outstanding shares of KIN stock would be acquired by Elanco at a per-share price of $9.25 which represents the total amount of roughly $440 million and a 52% premium on the basis of a 30-day average. The funding for this acquisition would be in the form of pre-payable debt.
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This transaction would enable KIN stock to launch three potential dermatology blockbusters through 2025 along with other research and development programs. Elanco expects that its expected innovation revenue of $500 million to $600 million by 2025 would add a further $100 million in connection with this combination.
Recent Development by KIN stock:
On June 02, 2021, the KIN stock did announce the results of KIND-030, a monoclonal antibody, in the dogs infected with parvovirus. The pivotal efficacy study results were positive as survival was the primary endpoint and the study showed 100% survival results in the treated group and the placebo group showed 43% survival results. 0 % mortality rate is observed in IND-030 treated dogs as compared to 57% mortality rate in the control dogs. No other treatment had been given to the dogs.
Financial View of Kindred Biosciences:
- According to the first quarter of 2021 financial results, the KIN stock generated net product revenue of $227,000 for ZimetaTMas compared to $603,000 in net product revenue for Mirataz in the same tenure of the prior year.
- Net loss for the KIN stock in the first quarter of 2021 was $9.7 million or $0.24 per share while the previous year’s net for the same period was reported $22.8 million or $0.58 per share by KIN stock.
- The product revenue costs were $207,000, research and development costs were $6.3 million and selling, general and administrative costs were $4.7 million for the recently reported quarter.
- The Kindred stock had investments, cash, and cash equivalents of $63.3 million by the end of March 2021 as compared to $59.9 million by the end of December 2020.
Conclusion:
So far so good for KIN stock as far as market sentiment is concerned as investors are responding to the recent acquisition agreement between Elanco and Kindred Bio. According to Zacks’ estimates, the KIN stock is expected to report a $0.12 per share loss in the upcoming quarter, and revenues would be expected to down by 79.5% in the upcoming quarter as compared to the previous year same quarter.