Eli Lilly to buy part of Novartis for $5.4 bn

US pharmaceutical giant Eli Lilly said Tuesday it has reached an agreement to acquire the animal health division of Novartis of Switzerland for $5.4 billion (3.9 billion euros).

In a statement Eli Lilly said the deal will strengthen and diversify its unit, Elanco, and make it the world's second largest in the sector in terms of global revenue.

Under the terms of the agreement, Lilly will acquire all assets of Novartis Animal Health for a total purchase price of approximately $5.4 billion, including anticipated tax benefits, Eli Lilly said.

It plans to fund this acquisition with approximately $3.4 billion of cash-on-hand and $2.0 billion in debt to be issued.

No other financial terms of the transaction were disclosed.

The transaction is expected to close by the end of the first quarter of 2015, subject to regulatory approvals in the US and overseas.

Novartis Animal Health is present in approximately 40 countries and posted 2013 revenue of approximately $1.1 billion.

It is focused on developing better ways to prevent and treat diseases in pets, and farmed fish, the Eli Lilly statement said.

add to favorites email to friend print save as pdf

Related Stories

US jury hits Takeda, Eli Lilly with $9B penalty (Update)

Apr 08, 2014

A U.S. jury ordered Japanese drugmaker Takeda Pharmaceutical Co. and its U.S. counterpart, Eli Lilly and Co., to pay $9 billion in punitive damages over a diabetes medicine linked to cancer. The drug companies said Tuesday ...

Eli Lilly 2013 profit forecast tops expectations

Jan 04, 2013

(AP)—Eli Lilly and Co. said Friday its 2013 earnings will grow more than Wall Street expects, even though the drugmaker will lose U.S. patent protection for two more key products this year.

Recommended for you

Health care M&A leads global deal surge

13 hours ago

In a big year for deal making, the health care industry is a standout. Large drugmakers are buying and selling businesses to control costs and deploy surplus cash. A rising stock market, tax strategies and ...

US approves new, hard-to-abuse hydrocodone pill (Update)

Nov 20, 2014

U.S. government health regulators on Thursday approved the first hard-to-abuse version of the painkiller hydrocodone, offering an alternative to a similar medication that has been widely criticized for lacking ...

Soaring generic drug prices draw Senate scrutiny

Nov 20, 2014

Some low-cost generic drugs that have helped restrain health care costs for decades are seeing unexpected price spikes of up to 8,000 percent, prompting a backlash from patients, pharmacists and now Washington ...

Only half of patients take their medications as prescribed

Nov 20, 2014

The cost of patients not taking their medications as prescribed can be substantial in terms of their health. Although a large amount of research evidence has tried to address this problem, there are no well-established ...

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.