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true true true

Bayer, Elanco Animal Health Reach $7.6 Billion Agreement

By Samantha Horton

Posted August 21, 2019

cow

(News File)

Indiana-based Elanco Animal Health is set to become the second largest animal health company in the world. The company announced the $7.6 billion agreement with Bayer Tuesday. 

The acquisition would expand Elanco’s business in the cattle industry and the growing companion animal market.

Indiana State Department of Agriculture director Bruce Kettler says he hopes the announcement could bring additional jobs to Indiana.

“As a department, we work with organizations like AgriNovus and our private corporations to make sure that we’re bringing the workforce and developing the jobs and skill sets that they want to have to be able to continue to grow,” says Kettler. “And I think this announcement is a good indicator that we’re doing a lot of very strong things in Indiana to make that happen.”

The American Pet Products Association reports U.S. consumers are increasing spending on their pets – more than an estimated $75 billion in 2019.

Purdue University Krannert School of Management associate dean Logan Jordan says the deal helps Elanco grow in an area that’s more stable than pharmaceuticals for humans. 

“Animal health tends to kind of vary with the macroeconomic factors,” says Jordan. “It relies, I’d say, a little less on blockbuster drugs that would come into the market that you would have to try to drive adoption for.”

Jordan says by selling the unit, Bayer should free up money to help pay settlement fees related to lawsuits over its Roundup product.

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