Elanco, the animal health division of Eli Lilly (NYSE: [[ticker:LLY]]), is filling out its pet products portfolio with a deal to acquire some dog and cat vaccines made by Boehringer Ingelheim.
Greenfield, IN-based Elanco said Wednesday that it will pay $885 million for the U.S. cat, dog, and rabies vaccine portfolio of Vetmedica, the animal health division of Boehringer. Elanco’s U.S. products currently include treatments for parasites, pain, and skin conditions. The Vetmedica products joining Elanco’s portfolio include vaccines for Bordetella, Lyme disease, rabies, and parvovirus, as well as several product candidates still in development. The deal also includes a Vetmedica manufacturing and research site in Fort Dodge, IA.
Boehringer is required to sell its U.S. pet vaccines business and Iowa manufacturing site as a condition of its acquisition of Merial, the animal health unit of Sanofi (NYSE: [[ticker:SNY]]). In June, Boehringer reached an agreement to swap its consumer health business for Sanofi’s Merial.
Elanco has been investing in its vaccine operations in recent years. The company opened its Vaccines Innovation Center in Greenfield in June to support research and development of new vaccines. Acquisitions have also helped Elanco build up its vaccine portfolio. It spent $5.2 billion to acquire Novartis Animal Health in 2015, and $591 million in 2014 to acquire Germany-based Lohmann Animal Health. Both deals included animal vaccines made by the respective companies.
Elanco’s acquisition of the Vetmedica vaccines portfolio still needs regulatory and antitrust approvals. It is also subject to the closing of Boehringer’s asset swap with Sanofi. But Elanco and Boehringer say they expect to close the vaccine products deal by early 2017.
