Elanco Animal Health Incorporated (NYSE: ELAN) disclosed that it has acquired Kindred Biosciences, Inc. (NASDAQ: KIN). Both the firms have inked an agreement through which Kindred will be bought by Elanco Animal Health. The purchase will further speed up the growth of Elanco in the alluring pet health market, especially improving Elanco’s existence in the fast-growing billion-dollar dermatology category.

This extremely balancing acquisition is concentrated on one of the most intriguing spaces in pet health, and one where the firm looks at a strategic necessity to develop a distinguished economical offering. Furthermore, KindredBio brings in three possible dermatology blockbusters anticipated to roll out through 2025, as well as several additional R&D programs for other chronic disorders and unfulfilled demands, involving canine parvovirus.

Shares of Elanco surged 3.37% as it has gained +1.17 at the time of writing on Wednesday. The firm has recorded a trading volume of 2.85 million as compared to the average volume of 3.91 million during the trading session of Wednesday. In the past 52-weeks of a trading session, the share of the firm surged 75.15% and -1.51% from its 52-week low and high, respectively. Elanco has a total market capitalization of $16.41 billion at the time of writing.

Additionally, Elanco expects the acquisition will add nearly $100 million to its earlier stated innovation revenue anticipation of $500 million to $600 million by 2025, with a substantial opportunity ahead of the period.