Lilly unit to buy Boehringer's US veterinary vaccines portfolio

German family-owned pharma major Boehringer Ingelheim’s Vetmedica Inc (BIVI) today announced an agreement with Elanco, a subsidiary of Eli Lilly (NYSE: LLY), to sell a portfolio of US canine, feline and rabies vaccines, as well as a fully integrated manufacturing and R&D site, to Elanco.

The sale to Elanco is anticipated to close by early 2017 subject to approval by the Federal Trade Commission, and other contingencies. The sale price of $885 million includes the estimated cost of acquired inventory. The deal is conditioned on antitrust approval and closing of the Boehringer Ingelheim asset swap transaction with France’s Sanofi (Euronext: SAN) that was signed in June 2016, and involves the transfer of the latter’s animal health business (Merial) to the German firm.

"This agreement is an important step toward a successful acquisition of Merial," said Dr Albrecht Kissel, president and chief executive of Boehringer Ingelheim Vetmedica, adding: "This was a highly complex decision from a business and from an emotional perspective. It was certainly not taken lightly particularly in view of the history and significant positive developments of this business over the past years."