The acquisition of the animal health business will allow Elanco to advance its R&D capabilities with the addition of innovative dosing and delivery technology platforms
Elanco Animal Health has completed the acquisition of Bayer Animal Health in a deal valued at around $6.89bn.
Under the deal, Bayer has secured $5.17bn in cash, as well as 72.9 million shares of Elanco Animal Health common stock.
Elanco president and CEO Jeff Simmons said: “Nearly two years into our journey as an independent company, we have made significant progress in creating a purpose-driven, independent global company dedicated to animal health – all while weathering the century’s most significant animal and human health pandemics: African Swine Fever and Covid-19.”
The acquisition is said to strengthen Elanco’s innovation, portfolio, productivity (IPP) strategy, which has been executing by the company since before its IPO in 2018.
Elanco’s advanced research and development (R&D) pipeline is now supported by five expected launch equivalents from Bayer, helping to expand the company’s total product portfolio to 25 by 2024. The five products are expected to be launched by the end of 2021.
The acquisition of Bayer’s animal health business unit will also add Elanco with new R&D capabilities, including innovative dosing and delivery technology platforms, as well as access Bayer’s Crop Science R&D pipeline and de-prioritised clinical pharma assets.
The acquisition of Bayer Animal Health will help Elanco to deliver more comprehensive animal health solutions
The combined company will deliver more comprehensive animal health solutions to the farmers, pet owners, and veterinarians.
Bayer management board chairman Werner Baumann said: “We would like to thank the employees of Animal Health for their long-standing commitment and the success this has brought for Bayer.
“In Elanco we’ve found a strong new owner for our Animal Health business. This transaction creates one of the global animal health leaders.”
Goldman Sachs served as financial advisor to Elanco, while Paul, Weiss, Rifkind, Wharton & Garrison Hengeler Mueller and Slaughter and May acted as legal counsel to Elanco.
Elanco Animal Health provides products and services for the prevention and treatment of diseases in farm animals and pets.
In June this year, Bayer agreed to pay between $10.1bn and $10.9bn to settle complaints against the Monsanto’s glyphosate-based weed killer Roundup in the US, for its alleged carcinogenic effects.