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Eli Lilly to acquire Novartis

With the goal of strengthening and diversifying Eli Lilly & Company’s animal health business, Elanco, the company will purchase Novartis Animal Health.  In an announcement this morning, Jeff Simmons, senior vice president of Eli Lilly and president of Elanco said animal health continues to be a growth opportunity for Lilly.

The acquisition will expand and complement Elanco’s product portfolio, R&D, and manufacturing capabilities.  Simmons says, “Combining these two great companies will enable us to provide more diversified brands, reach more market segments, expand our global footprint, and strengthen our pipeline, capabilities and expertise.”

Upon the completion of the all-cash $5.4 billion deal, Elanco will be the second-largest animal health company in terms of global revenue, solidify its number two ranking in the US, and improve its position in Europe.

The transaction is expected to close by the end of the first quarter of 2015, subject to clearance of all antitrust regulations both in the US and other countries.