Elanco Animal Health Inc. /zigman2/quotes/203710302/composite ELAN +0.28% said Wednesday it has entered an agreement to acquire Kindred Biosciences Inc. for about $440 million, adding three potential dermatology blockbusters to its pipeline. Under the terms of the deal, Elanco will pay $9.25 a share for each Kindred share owned, equal to a 52% premium based on the 30-day average closing price. The news sent Kindred shares up 45% in premarket trade. "Kindred Biosciences' monoclonal antibody pipeline and capabilities are additive and complementary to what we've built within Elanco," said Aaron Schacht, executive vice president Innovation, Regulatory and Business Development at Elanco. "This combination will bolster our opportunity for leadership in atopic dermatitis and allow us to deliver innovation of novel biologic therapeutics to treat other unmet disease challenges in pets." Elanco expects the deal to close in the third quarter and to be "slightly dilutive" to adjusted per-share earnings in 2021 and 2022. But it is expected to add a full percentage point of annual revenue growth starting in 2024. Elanco reaffirmed revenue guidance for the second quarter and full year. It expects second-quarter revenue to range from $1.225 billion to $1.255 billion and for full-year revenue to range from $4.670 billion to $4.710 billion. Elanco shares were not active premarket but have gained 13.5% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.75% has gained 13%.