Elanco intends to complete the acquisition of Bayer’s animal health business by August this year
Elanco Animal Health has secured approval from the European Commission (EC) for its acquisition of the animal health business from Bayer.
Elanco is planning to complete the acquisition of Bayer’s animal health business by August this year.
Elanco president and CEO Jeff Simmons said: “As the transaction edges closer to fruition, we look forward to turning our full attention to delivering innovation and an expanded portfolio of solutions for farmers, veterinarians and pet owners across the globe.
“The recent months have only underscored the critical work our farmers do in delivering meat, milk, fish and eggs, and the importance of providing pet owners and veterinarians with a variety of solutions in multiple channels from telemedicine and e-commerce to direct home delivery.”
In August 2019, Bayer signed a definitive agreement with Elanco to sell its Animal Health business unit for $7.6bn (£6.26bn).
The acquisition will allow Elanco to create a balance between the farm animal and pet businesses
The acquisition of Bayer’s animal health business will help Elanco to create a balance between the farm animal and pet businesses. It will also allow Elanco to expand its omnichannel approach and diversify the pet health business into the retail and e-commerce channels.
Earlier, Elanco entered into divestiture agreements in the range between $120m and $140m to use the revenue to advance the required regulatory reviews.
The EC’s approval is based on various conditions, including proposed divestment of worldwide rights for Osurnia, treatment for otitis externa in dogs, to Dechra Pharmaceuticals.
Elanco also agreed to divest worldwide rights of Vecoxan to Merck Animal Health. Vecoxan is used for the prevention and treatment of coccidiosis in calves and lambs.
The company also agreed to divest European Economic Area and UK rights of Bayer Animal Health’s Drontal and Profender product families and related pipeline assets to French pharmaceutical firm Vetoquinol. Drontal and Profender products are broad-spectrum de-wormers for dogs and cats.
Elanco has also secured antitrust clearance for the deal in China, Colombia, South Africa, Turkey, Ukraine, Vietnam, and provisional clearance in Brazil, in addition to EC approval.