Bayer Animal Health is no more. The one-time subsidiary of Germany-based Bayer AG has been absorbed by Elanco Animal Health in a merger that creates the world’s second-largest manufacturer of pet and livestock medicines and vaccines.
Elanco announced the closing of the acquisition Aug. 3. The price tag of $6.89 billion was down from the initial estimate of $7.6 billion. The final terms consisted of $5.17 billion in cash and 72.9 million shares to Bayer AG.
Elanco, which is headquartered in Greenfield, Indiana, was spun off from Eli Lilly & Co. in early 2019.
“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,” said Jeff Simmons, president and CEO of Elanco. “Delivering on the timely close of the acquisition and bringing momentum into Day 1 in this challenging environment underscores the deep capability and disciplined execution from both companies.”
Elanco was required to divest several products to earn regulators’ approval of the merger. For example, Osurnia, a treatment for otitis externa in dogs and similar to Bayer’s Claro, was sold to Dechra Pharmaceuticals.
Adding Bayer Animal Health product lines “elevates Elanco’s pet business to approximately 50% of revenues and nearly triples the company’s international pet health business,” Elanco reported.
“The transaction also broadens Elanco’s pet parasiticide portfolio with topical treatments and collars, making the blockbuster Seresto collar Elanco’s top product globally.”
Newly enlarged Elanco Animal Health leapfrogged Boehringer Ingelheim and Merck Animal Health to take second place on the ranking of animal health companies, trailing only Zoetis Inc. in annual revenue.
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