February 01, 2017

 

 Elanco buys Boehringer animal health portfolio for $885M

Posted Jan. 19, 2017

Elanco U.S. Inc., a subsidiary of Eli Lilly and Company, announced this past October an agreement to acquire Boehringer Ingelheim Vetmedica Inc.’s U.S. feline, canine, and rabies vaccines businesses as well as a fully integrated manufacturing and research and development site for $885 million. The deal will diversify Elanco’s companion animal portfolio.

Joining Elanco’s U.S. portfolio, which currently includes parasiticides and medications to control pain and treat dermatologic disorders, will be routinely administered vaccines against Bordetella bronchiseptica infection, Lyme disease, rabies, and parvovirus infection, among others. Also included in the agreement are several pipeline assets.

“We understand the unique bond that owners share with pets and are committed to helping those pets live longer, healthier lives,” said Jeff Simmons, Elanco Animal Health president. “With a growing portfolio addressing both prevention and treatment of disease, Elanco can partner with veterinarians and pet caregivers to do just that.”

The acquisition is anticipated to close early this year, subject to approval by the Federal Trade Commission, compliance with antitrust laws, and closing of Boehringer Ingelheim’s asset swap with Sanofi.

The sale of BIVI’s U.S. pet vaccines business and its Fort Dodge, Iowa, manufacturing site is a required step toward the acquisition of Merial by Boehringer Ingelheim. France-based Sanofi SA and Germany-based Boehringer Ingelheim GmbH announced this past June that they had signed contracts to exchange Sanofi’s animal health business­—Merial—for Boehringer Ingelheim’s consumer health care business (see JAVMA, Aug. 15, 2016).

John C. Lechleiter, PhD, Lilly’s chairman, president, and CEO, said that the planned acquisition of BIVI’s U.S. feline, canine, and rabies vaccines businesses reaffirms Lilly’s confidence in Elanco’s growth potential.

“As a result of the acquisition, Elanco will bring greater value to customers by providing a suite of options for preventing common diseases in companion animals,” Dr. Lechleiter said. “Coupled with our robust food animal portfolio, this addition further strengthens Elanco’s position in the global animal health business.”