GREENFIELD, Ind., Aug. 20 Elanco, a division ofEli Lilly and Company (NYSE: LLY), today announced that Lilly has signed anagreement to acquire the worldwide rights to the dairy cow supplement,Posilac(R) (sometribove), as well as the product's supporting operations, fromMonsanto Company (NYSE: MON).
"Global dairy demand is increasing, outstripping supply, and consumers areseeing rapidly rising prices," said Jeff Simmons, president, Elanco. "With thepurchase of Posilac, Elanco can enhance its overall product portfolio and worktogether with the industry to provide dairy farmers more options and giveconsumers affordable choices. Critically, we remain focused on the health andcare of the cow in working with farmers to increase global milk supply.
"With our rich history and experience in the dairy industry, Elanco is theideal steward of this vital technology," Simmons said. "Elanco remainscommitted to using science to address the growing need for safe, affordablefood; and to choices for consumers, retailers and producers."
Elanco has exclusively sold sometribove outside of the United States for adecade. Posilac has been safely used for more than 14 years.
Under the terms of the agreement, Lilly will acquire all rights to thePosilac brand, as well as the product's U.S. sales force and its manufacturingfacility in Augusta, Georgia. In return, Monsanto will receive a $300 millionupfront payment, as well as contingent consideration. The Posilac dairybusiness manufacturing and sales teams will be integrated into the Elancobusiness. The transaction is expected to close near the beginning of thefourth quarter of 2008, contingent upon clearance under the Hart-Scott-RodinoAnti-Trust Improvements Act and other customary closing conditions. Lillyconfirmed that the acquisition will not result in a change to the company'sfull-year 2008 financial guidance, as detailed in its second quarter 2008financial results press release issued July 24, 2008.
Posilac (rbST) is approved by numerous regulatory authorities worldwide tohelp dairy farmers improve milk productivity. BST (bovine somatotropin) is anatural protein produced in all cattle, helping adult cows produce milk. Milkfrom cows receiving Posilac is unchanged from milk from cows not receivingthis supplement.
Since it received U.S. FDA approval in 1994, Posilac has become a leadingdairy animal supplement in the United States and many other countries.Supplementing dairy cows with Posilac enhances milk production and serves asan important tool to help dairy producers improve the efficiency of theiroperations and produce more milk more sustainably.
Elanco is a global innovation-driven company that develops and marketsproducts to improve animal health and food animal production in more than 100countries. Elanco employs more than 2,000 people worldwide, with offices inmore than 30 countries, and is a division of Eli Lilly and Company, a leadingglobal pharmaceutical corporation. Additional information about Elanco isavailable at www.elanco.com.
About Eli Lilly and Company
Lilly, a leading innovation-driven corporation, is developing a growingportfolio of first-in-class and best-in-class pharmaceutical products byapplying the latest research from its own worldwide laboratories and fromcollaborations with eminent scientific organizations. Headquartered inIndianapolis, Ind., Lilly provides answers - through medicines and information- for some of the world's most urgent medical needs. C-LLY
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SOURCE Eli Lilly and Company