Deal strengthens Lilly’s animal medicine division following recent acquisition

Eli Lilly subsidiary Elanco has agreed to buy Boehringer Ingelheim’s cat, dog and rabies vaccines, along with a research and manufacturing facility in Fort Dodge, US, in a deal worth $885 million (£712 million).

The transaction will mutually benefit both firms: Boehringer needs to offload this arm of its animal health business as it seeks approval from competition authorities for its recently negotiated asset swap with Sanofi, while the purchase will bolster Lilly’s animal medicine portfolio following its $5.4 billion acquisition of Novartis Animal Health in 2014.

The deal is expected to close in early 2017, subject to approval from the US Federal Trade Commission and the successful conclusion of Boehringer’s deal with Sanofi.