Bayer to sell off animal health business for $7.6bn

Bayer has agreed to sell its animal health business to US-based Elanco Animal Health for $7.6 billion, as part of its strategic plan to focus on its core life sciences businesses.

The move follows Bayer’s announcement in November last year, that the German company planned to exit the animal health business, along with its sun care (Coppertone) and foot care (Dr. Scholl’s) product lines.

Announced yesterday, August 20, the acquisition will make Elanco the number two animal health company, behind Zoetis (which was spun out from Pfizer in 2013). The deal is subject to regulatory approval and expected to conclude in mid-2020.

In March this year, 64-year-old Elanco completed its separation from Eli Lilly, through an initial public offering.

Werner Baumann, chairman of the board of management of Bayer, said: “This transaction enhances our focus as a global leader in life sciences. We are therefore delivering ahead of schedule on one of the key priorities for driving value creation.”

In the fiscal year 2018, Bayer’s animal health business reported sales of $1.8 billion. The business markets Advantage, the family of flea, tick and worm control products.

Jeffrey Simmons, president and CEO of Elanco, added: “Combining Elanco’s strong relationship with veterinarians and Bayer’s leadership in retail and e-commerce will ultimately benefit all our customers.”

Earlier this month, Bayer announced it would acquire the rest of BlueRock Therapeutics, in a deal valuing the Massachusetts-based cell therapy company at $1 billion.

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