GREENFIELD, Ind. — Elanco, a division of Eli Lilly and Company announced Aug. 20 Lilly has signed an agreement to acquire the worldwide rights to the dairy cow supplement, Posilac, as well as the product’s supporting operations, from Monsanto Company.
“Global dairy demand is increasing, outstripping supply, and consumers are seeing rapidly rising prices,” said Jeff Simmons, president, Elanco. “We remain focused on the health and care of the cow in working with farmers to increase global milk supply.”
Elanco has exclusively sold sometribove outside of the United States for a decade.
Under the terms of the agreement, Lilly will acquire all rights to the Posilac brand, as well as the product’s U.S. sales force and its manufacturing facility in Augusta, Georgia. In return, Monsanto will receive a $300 million upfront payment, as well as contingent consideration.
The Posilac dairy business manufacturing and sales teams will be integrated into the Elanco business.
The transaction is expected to close near the beginning of the fourth quarter of 2008.
Posilac (rbST) is approved by numerous regulatory authorities worldwide to help dairy farmers improve milk productivity. Bovine somatotropin is a natural protein produced in all cattle, helping adult cows produce milk. Milk from cows receiving Posilac is unchanged from milk from cows not receiving this supplement.