Elanco set to purchase Janssen

Elanco, the animal health division of Eli Lilly, has made an “irrevocable and unconditional offer” to acquire Belgium-based Janssen Animal Health.

No manufacturing facilities are included in the planned transaction, but upon closing the deal, Elanco will obtain a portfolio of about 50 marketed animal health products, primarily European-focused and with special emphasis on pigs and poultry.

“The addition of Janssen’s animal health business will strongly support a number of strategic growth priorities for Elanco, while providing synergies with our current operations,” said Elanco president Jeff Simmons. “Through this transaction, we intend to further expand our European presence, bolster our growing portfolio of companion animal medicines and diversify our food animal portfolio with new swine and poultry products.”

The two companies are both well-known suppliers to the UK poultry sector. Janssen is best-known for its wormers Flubenol and Flubenvet, and its anti-coccidial treatment Clinacox. Elanco is renowned for its antibiotics Tylan, Apralan and Pulmotil, its anti-coccidials Maxiban, Elancoban and Monteban, and its red mite treatment Elector.

Explaining his company’s decision to divest, Tom Heyman, managing director of Janssen Pharmaceutical,said its animal health activities were “no longer part of the strategic core business going forward”. “By becoming part of a top five animal health company, in a competitive market, the Janssen Animal Health business will benefit from the experience, scale and focus of a key player in the sector.”

Elanco is a global company that develops and markets its animal health products in more than 75 countries. It employs more than 2300 people worldwide, with offices in more than 40 countries

Closing of the transaction is contingent upon clearance from the European regulatory authorities, who have been notified. As part of the proposed agreement, Janssen Animal Health employees will transfer to Elanco.

No other terms of the transaction have been disclosed.

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