Dechra Pharmaceuticals buys worldwide rights to Mirataz product portfolio

Veterinary medicines specialist Dechra Pharmaceuticals has agreed to acquire the worldwide rights to Kindred Biosciences' Mirataz product portfolio for $43m.

Dechra, which will finance the acquisition from its existing cash and borrowing facilities, will also pay Kindred a royalty on future sales of the products.

The FTSE 250 firm said the addition of Mirataz, a transdermal medication for the management of weight loss in cats, significantly enhanced its portfolio and was "fully complementary" to its existing product offering to veterinarians.

Chief executive Ian Page said: "The product is an incredibly good fit with Dechra's portfolio as many of the diseases that our current products treat can lead to weight loss in cats.

"The addition of Mirataz will allow us to offer a solution for veterinarians to manage unintended weight loss in cats and offer the best option for the pet whilst treating the underlying cause."

Dechra also touched on current trading on Tuesday, saying that despite current equity market conditions and "the rapidly changing developments regarding COVID-19", the group remained "robust", with a strong balance sheet and strong cash flow.

As of 0845 GMT, Dechra shares were up 2.21% at 2,216p.