Elanco’s merger deal with Novartis Animal Health finalised

Elanco has announced that its parent company Lilly has completed its $5.4 billion (3.5 billion pounds) takeover of Novartis Animal Health.

The combination of the animal health companies will greatly increase Elanco's product portfolio, expand its global commercial presence and add 17 manufacturing sites and 14 research and development locations to its network.

Additionally, the deal means Elanco will be able to manage a more balanced and diversified business, with revenues more evenly split between the food and companion animal sectors.

As part of the terms of the deal set down by regulators, certain animal health assets in the US relating to the Sentinel canine parasiticide franchise will be divested to Virbac.

Jeff Simmons, senior vice-president of Lilly and president of Elanco Animal Health, said: "Our combination will deliver a more comprehensive suite of existing solutions, but will also allow us to dedicate greater resources to new product discovery and development."

The Novartis Animal Health business has a presence in approximately 40 countries, with 2013 revenue coming to approximately $1.1 billion.