Eli Lilly Expands Pet Vaccines Portfolio With Boehringer Acquisition

Health and Healthcare

Published: October 5, 2016 10:35 am

Last Updated: January 13, 2020 2:46 am

Eli Lilly and Co. (NYSE: LLY) shares had a bit of a boost on Wednesday after it was announced that one of its subsidiaries would be acquiring Boehringer Ingelheim Vetmedica (BIVI). Effectively, this pharmaceutical giant is looking to sell a portfolio of U.S. canine, feline and rabies vaccines, as well as a fully integrated manufacturing and research and development site to Elanco.

Under the terms of the agreement, BIVI will be acquired for a total of $885 million, which includes the estimated cost of acquired inventory. At the same time, the deal is conditioned on antitrust approval and closing of the Boehringer Ingelheim (BI) asset swap transaction with Sanofi that was signed in June 2016.

The sale to Elanco is anticipated to close by early 2017 but is still subject to regulatory approval.

For some further background on BIVI: the company develops, manufactures and markets novel and innovative solutions for the prevention and treatment of disease in the cattle, equine, pet and swine markets. BIVI is the fifth largest animal health company in the United States.

Dr. Albrecht Kissel, president and CEO of BIVI, commented:

This agreement is an important step toward a successful acquisition of Merial. 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.

He added:

We are confident that, under Elanco’s leadership, customers will continue to have access to these innovative vaccines and the portfolio will have strong support.

So far in 2016, Eli Lilly has underperformed the broad markets, with the stock down about 1%. Over the past 52 weeks, the stock is down close to 3%.

Shares of Eli Lilly traded up up about 1% to $81.90 on Wednesday, with a consensus analyst price target of $97.80 and a 52-week trading range of $67.88 to $88.16.

The Average American Has No Idea How Much Money You Can Make Today (Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps