Eli Lilly and Co. announced April 22 an agreement to acquire Novartis Animal Health for $5.4 billion to strengthen and diversify Lilly’s animal health business, Elanco.
On completion of the acquisition, Elanco will be the second largest animal health company in terms of global revenue, after Zoetis. Lilly expects to close the transaction by the end of the first quarter of 2015, subject to regulatory approvals.
The acquisition provides Elanco with a greater commercial presence in the companion animal and swine markets, expands Elanco’s presence in the equine and vaccines areas, and creates an entry into the aquaculture market.
“Combining these two great companies will enable us to provide more diversified brands, reach more market segments, expand our global footprint, and strengthen our pipeline, capabilities, and expertise,” said Jeff Simmons, president of Elanco Animal Health. “Best of all, it will enable Elanco to better fulfill our important mission of enriching people’s lives through safe, nutritious, affordable food and healthier pets.”