Lilly agrees to purchase animal health firm

Lilly has announced it is to purchase animal health products company Lohmann SE in an effort to expand its outreach in the global poultry market.

Financial terms of the arrangement have not been disclosed, but the deal – expected to be closed in the second quarter of the year – has caused the drugmaker to reduce its per share earnings outlook to between $2.72 and $2.80, down from a $2.77 to $2.85 range previously.

Lohmann is responsible for a range of vaccines and feed additives and owns manufacturing plants in both Germany and the US.

Through its Elanco animal health unit, Lilly has invested heavily in the sector over the last few years.

Lilly senior vice president Jeff Simons said: "Effectively competing in the animal vaccine segment is a cornerstone of Elanco's long-term strategy."

Last month, the firm revealed its animal health division posted fourth-quarter revenues of $578.4 million (347.49 million pounds), up by four per cent year on year.