Eli Lilly has agreed to purchase the animal health products company Novartis Animal Health for approximately $5.4 billion.
The all-cash transaction could strengthen and diversify Lilly‘s own animal health business, Elanco.
When Lilly completes the acquisition, Elanco, which has been a part of Eli Lilly for nearly 60 years, will be the second-largest animal health company in the world.
“Novartis brings in a lot of expertise similar to what we have around customer value,” Elanco President Jeff Simmons says. “They have a real focus on innovation and some top leading brands that combine with our leading brands, so we’re excited about that.”
Simmons says the acquisition will allow Elanco to be a world leader in animal health products and innovations.