Bolsters Merck Animal Health’s position in
the aqua industry with comprehensive approach to ensure fish
health, welfare and sustainability in aquaculture, conservation and
fisheries
Complements Merck Animal Health’s broad
portfolio of veterinary pharmaceuticals, vaccines and technology
solutions
Merck Animal Health, known as MSD Animal Health outside of the
United States and Canada, a division of Merck & Co., Inc.,
Rahway, N.J., USA (NYSE:MRK), today announced that it has signed a
definitive agreement to acquire the aqua business of Elanco Animal
Health Incorporated (NYSE: ELAN) for $1.3 billion in cash,
consisting of an innovative portfolio of medicines and vaccines,
nutritionals and supplements for aquatic species; two related aqua
manufacturing facilities in Canada and Vietnam; as well as a
research facility in Chile. The acquisition is expected to be
completed by mid-year 2024, subject to approvals from regulatory
authorities and other customary closing conditions.
Upon closing, the acquisition will broaden Merck Animal Health’s
aqua portfolio with products, such as CLYNAV®, a new generation
DNA-based vaccine that protects Atlantic salmon against pancreas
disease, and IMVIXA®, an anti-parasitic sea lice treatment. This
acquisition also brings a portfolio of water treatment products for
warm water production, complementing Merck Animal Health’s warm
water vaccine portfolio. In addition to these products, the
DNA-based vaccine technology that is a part of the business has the
potential to accelerate the development of novel vaccines to
address the unmet needs of the aqua industry.
“We are excited for the acquisition of Elanco’s aqua products,
solutions as well as the capabilities and expertise the team brings
to our business,” said Rick DeLuca, president, Merck Animal Health.
“We believe this acquisition, coupled with our commercial and
scientific prowess, will deliver enhanced benefits for our aqua
customers. The addition of this innovative portfolio of cold water
and warm water aqua products across vaccines, anti-parasitic
treatments, water supplements and nutrition, will establish Merck
Animal Health as a leader in aqua.”
Elanco Animal Health President and CEO Jeff Simmons said,
“Following a robust process over the last year, Merck Animal
Health emerged as the right strategic buyer for the aquaculture
business. I am confident they will continue to deliver value to the
aqua customers that rely on these products and create opportunities
for our team to continue to grow. We are deeply grateful to our
aqua organization’s dedication to delivering for our customers and
to our bigger purpose of enriching lives with animal protein.”
This acquisition will represent the latest in a series of
acquisitions which have augmented Merck Animal Health’s aqua
business. In March 2019, Merck Animal Health acquired Scan Aqua AS,
a fish health and fish welfare company based in Norway, focused on
key aqua products. In April 2019, Merck Animal Health announced the
completion of its acquisition of Antelliq Corporation, which
included BIOMARK, a passive integrated transponder (PIT) tagging
and tracking technology for monitoring fish and wildlife. In
December 2019, Merck Animal Health acquired Vaki, a leader in
aquaculture and wild fish conservation monitoring equipment and
real-time video monitoring technology for fish counting and size
estimation from freshwater to saltwater rearing, while collecting
and analytics for each stage of fish production.
Advisors
Goldman Sachs & Co., LLP acted as financial advisor to Merck
Animal Health in this transaction and Covington & Burling LLP
acted as its legal advisor.
About Merck Animal Health
At Merck, known as MSD outside of the United States and Canada,
we are unified around our purpose: We use the power of leading-edge
science to save and improve lives around the world. For more than a
century, we’ve been at the forefront of research, bringing forward
medicines, vaccines and innovative health solutions for the world’s
most challenging diseases. Merck Animal Health, a division of Merck
& Co., Inc., Rahway, N.J., USA, is the global animal health
business of Merck. Through its commitment to The Science of
Healthier Animals®, Merck Animal Health offers veterinarians,
farmers, producers, pet owners and governments one of the widest
ranges of veterinary pharmaceuticals, vaccines and health
management solutions and services as well as an extensive suite of
connected technology that includes identification, traceability and
monitoring products. Merck Animal Health is dedicated to preserving
and improving the health, well-being and performance of animals and
the people who care for them. It invests extensively in dynamic and
comprehensive R&D resources and a modern, global supply chain.
Merck Animal Health is present in more than 50 countries, while its
products are available in some 150 markets. For more information,
visit www.merck-animal-health.com and connect with us on LinkedIn,
Facebook, X (formerly Twitter) and Instagram.
Forward-Looking Statement of Merck & Co., Inc., Rahway,
N.J., USA
This news release of Merck & Co., Inc., Rahway, N.J., USA
(the “company”) includes “forward-looking statements” within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, including statements made
regarding the potential benefits of the acquisition and the
anticipated timing of the closing of the proposed transaction (the
“transaction”). Such forward-looking statements include, but are
not limited to, the ability of the company and Elanco to complete
the transactions contemplated by the definitive agreement,
including the parties’ ability to satisfy the conditions to the
consummation of the transactions contemplated thereby, statements
about the expected timetable for completing the transaction, the
company’s and Elanco’s beliefs and expectations and statements
about the benefits sought to be achieved in the company’s proposed
acquisition of Elanco’s aquaculture business, the potential effects
of the acquisition on both the company and Elanco, the possibility
of any termination of the definitive agreement, as well as the
expected benefits and success of Elanco’s aquaculture product
candidates. These statements are based upon the current beliefs and
expectations of the company’s management and are subject to
significant risks and uncertainties. There can be no guarantees
that the conditions to the closing of the transaction will be
satisfied on the expected timetable or at all, or that any pipeline
candidate will receive the necessary regulatory approvals or prove
to be commercially successful. If underlying assumptions prove
inaccurate or risks or uncertainties materialize, actual results
may differ materially from those set forth in the forward-looking
statements.
Risks and uncertainties include but are not limited to,
uncertainties as to the timing of the closing of the acquisition;
the possibility that various conditions to the consummation of the
transaction may not be satisfied or waived; the effects of
disruption from the transaction and the impact of the announcement
and pendency of the transactions on the company’s business; general
industry conditions and competition; general economic factors,
including interest rate and currency exchange rate fluctuations;
the impact of the global outbreak of novel coronavirus disease
(COVID-19); the impact of pharmaceutical industry regulation and
health care legislation in the United States and internationally;
global trends toward health care cost containment; technological
advances, new products and patents attained by competitors;
challenges inherent in new product development, including obtaining
regulatory approval; the company’s ability to accurately predict
future market conditions; manufacturing difficulties or delays;
financial instability of international economies and sovereign
risk; dependence on the effectiveness of the company’s patents and
other protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in the company’s Annual
Report on Form 10-K for the year ended December 31, 2022 and the
company’s other filings with the Securities and Exchange Commission
(SEC) available at the SEC’s Internet site (www.sec.gov).
Source: Merck & Co., Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20240205860915/en/
Media:
Gail S. Thornton (908) 392-3420 gail.thornton@merck.com
Michael Close (310) 617-1067 michael.l.close@merck.com
Investors:
Peter Dannenbaum (732) 594-1579 peter.dannenbaum@merck.com
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