GREENFIELD, IN; January 3, 2017 /PRNewswire/– Today Elanco US Inc., a subsidiary of Eli Lilly and Company (NYSE: LLY), announced that it has completed the acquisition of Boehringer Ingelheim Vetmedica, Inc’s (BIVI) U.S. feline, canine and rabies vaccines portfolio – as well as a fully integrated manufacturing and R&D site and several pipeline assets.
The acquisition diversifies Elanco’s U.S. companion animal portfolio by adding vaccines for a range of common concerns such as bordetella, Lyme disease, feline leukemia, rabies, and parvovirus. Product will be made available by Elanco immediately, with no interruption in supply to veterinarians who rely on these products to keep pets living longer, healthier lives.
"With a growing portfolio addressing both prevention and treatment of disease, Elanco is now able to offer our U.S. customers a comprehensive suite of solutions to some of pets’ most common issues," said Eric Graves, president, Elanco North American operations. "These new offerings will come with the Elanco expertise that veterinarians and pet owners have come to know and trust, including pet health case management, technical support, and resources for supporting the human-animal bond."
Under the terms of the agreement, Elanco acquired the BIVI portfolio for approximately $885 million, including the estimated cost of acquired inventory. The impact of the acquisition, which closed on January 3, 2017, will be reflected beginning in Lilly’s first quarter 2017 financial statements.
The acquired vaccines portfolio has experienced revenue growth over the past three years, and Lilly expects the acquisition to be accretive to GAAP earnings in 2019 and to non-GAAP earnings in 2018.
Jefferies LLC is acting as the exclusive financial advisor and Paul Hastings LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as legal advisors to Elanco and Lilly in this transaction.
The product lines include:
Elanco provides comprehensive products and knowledge services to improve animal health and food-animal production in more than 70 countries around the world. We value innovation, both in scientific research and daily operations, and strive to cultivate a collaborative work environment for more than 6,500 employees worldwide. Together with our customers, we are committed to raising awareness about global food security, and celebrating and supporting the human-animal bond. Founded in 1954, Elanco is a division of Eli Lilly and Company. Elanco US, Inc., a wholly-owned subsidiary of Lilly, is the U.S. entity acquired as part of the Novartis acquisition. Our worldwide headquarters and research facilities are located in Greenfield, Indiana. Visit us at Elanco.com.
About Eli Lilly and Company
Lilly is a global healthcare leader that unites caring with discovery to make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. To learn more about Lilly, please visit us at www.lilly.com and www.lilly.com/newsroom/social-channels.
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about the benefits of the acquisition of Boehringer Ingelheim Vetmedica, Inc’s U.S. feline, canine and rabies vaccines portfolio. It reflects Elanco’s and Lilly’s current beliefs. However, as with any such undertaking, there are substantial risks and uncertainties in the process of implementing the transaction and in animal health drug development. Among other things, there can be no guarantee that Lilly and Elanco will realize the expected benefits of the transaction, that the pipeline products will be approved on the anticipated timeline or at all, or that the current portfolio and product pipeline will be commercially successful. For further discussion of these and other risks and uncertainties, see Lilly’s most recent Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly and Elanco undertake no duty to update forward-looking statements to reflect events after the date of this release.