IBJNews

Eli Lilly to buy European rights to Pfizer animal products

Back to TopCommentsE-mailPrintBookmark and Share

Elanco, the animal health division of Eli Lilly and Co., announced Monday morning that Lilly has signed an agreement to acquire the European rights to certain Pfizer Inc. animal health products.

Those products include vaccines, parasiticides and feed additives used in both the production animal and companion animal markets. The products have been marketed by both New York-based Pfizer and New Jersey-based Wyeth, which Pfizer acquired in October.

Under the terms of the agreement, Lilly also will purchase a biological manufacturing facility in Sligo, Ireland. In return, Pfizer will receive an undisclosed upfront payment from Lilly.

Both companies also have signed manufacturing supply agreements, to ensure an uninterrupted supply of products to customers, Lilly said. Closing of the transaction is contingent upon clearance from European regulatory authorities and other conditions.

Additional terms of the transaction were not disclosed.

The addition of the portfolio of products and of the manufacturing facility is a natural fit for Elanco and positions it well for future growth, Elanco President Jeff Simmons said in a prepared statement.

“Through this acquisition, we will expand and diversify our European presence with new market-leading products, augment our growing portfolio of companion animal medicines, and acquire new biologic and vaccine capabilities,” he said.

Elanco’s revenue has been growing about 10 percent each year, reaching $1.2 billion in 2009, or about 5.5 percent of Lilly’s nearly $22 billion in annual revenue.

But the drug maker is counting on its animal health division to grow even more to help fill the revenue gap that will begin to widen in October 2011. That’s when Lilly’s bestselling drug, the antipsychotic Zyprexa, will lose its patent protection and face competition from generic versions.

In the ensuing three years, the patents on four more Lilly drugs will expire, which could cause the company to lose half of its current revenue.

Meanwhile, Lilly has few drugs in its late-stage pipeline to try to offset the sales shortfall. So growth in animal health becomes increasingly important.

Lilly began making animal health acquisitions in 2007, when it bought Ivy Animal Health, a Kansas-based developer of pharmaceuticals for animals. And, in 2008, Lilly paid $300 million to acquire Posilac, a controversial hormone, also known as rBGH, given to cows to increase their milk production.

Pfizer paid about $68 billion for Wyeth in a deal that closed last October. As part of the deal, Pfizer was required by the regulators to divest some of its overlapping animal health business in certain markets.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Only half a million TV Viewers? And thats an increase? I knew Indycar was struggling but I didn't know it was that bad. Hell, if NASCAR hits 5 Million viewers everyone starts freaking out saying its going down hill. It has a long way to before Indycar even hits NASCAR's bad days.

  2. IU has been talking that line for years with no real progress even with the last Dean, Dr. Brater. Why will an outsider, Dr. Hess, make a difference? With no proof of additional resources (cash in the bank), and a concrete plan to move an academic model that has been outdated for decades with a faculty complacent with tenure and inertia, I can count on IU to remain the same during the tenure of Dr. Hess. One ought to look to Purdue and Notre Dame for change and innovation. It is just too bad that both of those schools do not have their own medical school. Competition might wake up IU. My guess is, that even with those additions to our State, IU will remain in its own little world squandering our State's tax dollars. Why would any donor want to contribute to IU with its track record? What is its strategy to deal with the physician shortage for our State? New leadership will not be enough for us to expect any change.

  3. How do you think the Bridges got approved? I spent a couple days researching PAC's and individual contributions to some city council members during that time. My printouts were inches thick on the two I concentrated on. Finally gave up. Was disgusted with all the donations, and who they were from. Would have taken me days and days to compile a complete list. Tried to give it to the Star reporter, but he thought it was all just fine. (and apparently he was treated well himself) He ended up being laid off or fired though. And then of course, there was land donated to the dad's club, or city, as a partial payoff. All done in the shining example of "charity." No, none of these contributions are a coincidence.

  4. I agree what kind of help or if any will be there for Dr. Ley's patients. I was a patient myself.

  5. What about the hundreds of patients who sought this doctor for the right reasons, to quit drugs. what option do these patients now have, experience horrible withdrawl or return to heroin?? those are the choices. what about the children of these former addicts who's parent(s) WILL not b able to maintain their job, for @ least 2 weeks.. There needs to b an emergency clinic opened for these patients.

ADVERTISEMENT