Eli Lilly and Company to Acquire Monsanto's POSILAC Brand Dairy Product and Related Business
August 20 2008 - 8:00AM
PR Newswire (US)
ST. LOUIS, Aug. 20 /PRNewswire-FirstCall/ -- Monsanto Company
(NYSE:MON) announced today that it has entered into an agreement to
sell its POSILAC(R) bovine somatotropin brand and related business
to Eli Lilly and Company (NYSE: LLY). Lilly's animal health
division, Elanco, headquartered in Greenfield, Indiana, is the
seventh largest animal health company on a global sales basis.
Under the terms of the agreement, Lilly will purchase assets and
liabilities of Monsanto associated with the POSILAC brand and
related business for an upfront payment of $300 million, plus
additional contingent consideration. The transaction will be
completed as soon as practical. Additional terms of the agreement
were not disclosed. Elanco has been marketing recombinant bovine
somatotropin for Monsanto over the last decade outside the United
States under a licensing agreement. "We're pleased Elanco is
acquiring this business and will continue to provide dairy farmers
with this important production tool," said Carl Casale, Monsanto's
Executive Vice-President of Strategy and Operations. "Elanco is
fully focused on animal health and productivity and is committed to
the importance of POSILAC in both the domestic and the
international marketplace." POSILAC bovine somatotropin is an
FDA-approved animal pharmaceutical used by U.S. dairy farmers to
increase productivity. Since it was first sold in the United States
in 1994, POSILAC has become the country's leading dairy animal
supplement. POSILAC safely increases productivity of dairy cows
thereby allowing family farm owners to more easily provide for
their family and employees, reinvest in their farms, and conserve
resources like land, water and energy. Over the past 14 years, more
than a half billion units of POSILAC have been successfully and
safely used by tens of thousands of dairy producers on millions of
cows to produce wholesome, nutritious, safe and affordable milk and
dairy products. About Monsanto Company Monsanto Company is a
leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food
quality. For more information, please visit the company's web site
at http://www.monsanto.com/. POSILAC(R) is a registered trademark
of Monsanto Company and its wholly-owned subsidiaries. Cautionary
Statements Regarding Forward-Looking Information: Certain
statements contained in this release are "forward-looking
statements," such as statements concerning the company's current
and future product performance, business and financial plans and
other non-historical facts. These statements are based on current
expectations and currently available information. However, since
these statements are based on factors that involve risks and
uncertainties, the company's actual performance and results may
differ materially from those described or implied by such
forward-looking statements. Factors that could cause or contribute
to such differences include, among others: the company's exposure
to various contingencies, including those related to intellectual
property protection, and public acceptance of biotechnology
products; the outcomes of major lawsuits; developments related to
foreign currencies and economies; fluctuations in commodity prices;
compliance with regulations affecting our manufacturing; the
accuracy of the company's estimates related to distribution
inventory levels; the effect of weather conditions, natural
disasters and accidents on the agriculture business or the
company's facilities; and other risks and factors detailed in the
company's most recent periodic report to the SEC. Undue reliance
should not be placed on these forward-looking statements, which are
current only as of the date of this release. The company disclaims
any current intention or obligation to update any forward-looking
statements or any of the factors that may affect actual results.
DATASOURCE: Monsanto Company CONTACT: Danielle Jany of Monsanto
Company, +1-314-694-2478 Web site: http://www.monsanto.com/ Company
News On-Call: http://www.prnewswire.com/comp/114341.html
Copyright