Beyond the public company’s $100 million headquarters campus, city and state leaders expect 26 acres to be used for an expansion of White River State Park and new projects potentially with residential, retail and office uses.
The total doesn’t include the value of the land the state will give to Elanco Animal Health for the project. Even so, the combined city and state package is possibly the largest amount of tax breaks ever considered for an economic development deal in Indiana.
CEO Jeff Simmons said the company’s high-profile downtown Indianapolis headquarters will signal a cultural transformation at the company, which for most of its six decades of existence operated as a little-noticed subsidiary of Eli Lilly and Co.
The state has offered at least $86 million in tax incentives, plus land for the project.
Podcast host Mason King talks with Margie Craft, a senior adviser at Elanco Animal Health who is leading Food Secure Indy, a coalition of companies, public officials and not-for-profit groups that want to coordinate hunger-relief efforts.
The layoff is the first step in what is expected to be a major restructuring following Greenfield-based Elanco’s $6.9 billion acquisition of German conglomerate Bayer AG’s animal-health division.
So far, Elanco has been a textbook case for the benefits of spinoffs—for both the parent company divesting the business and the division gaining its independence.
Shares in Elanco rose 2.8% Wednesday morning after the approval was announced, to $24.13 each.
The land formerly was owned by Eli Lilly and Co. and then was included in Elanco’s 2018 spin-off from the pharmaceutical company.
The deal, which is expected to close by mid-2020, will swell Elanco from the world’s fourth-largest animal health player to the second-largest, behind only New Jersey-based Zoetis.
Investors appeared to be nervous over the rich price of the deal and the amount of debt that Elanco will take on to finance it.
The purchase would swell Elanco from the world’s fourth-largest animal health player to the second-largest, behind only New Jersey-based Zoetis.
The multibillion-dollar deal would swell the size of Elanco, which already is the fourth-largest global player in animal health.
The multibillion-dollar merger would combine Elanco, the fourth-largest global player in animal health, with Bayer’s pet-health division, which ranks fifth in veterinary medicine, Reuters reported. The combination would create a dominant force in the industry.
Kansas-based Aratana Therapeutics has three treatments approved by the U.S. Food and Drug Administration and is working on drugs for a range of disease fields, including cancer.
Shares in Elanco Animal Health Inc. slipped as much as 3.3 percent Monday morning after lead managers and other banks involved in its recent initial public offering started coverage on the animal health company.