Eli Lilly's Elanco To Acquire Boheringer Inghelheim's U.S. Rabies Vaccine Business For $885 Million

Eli Lilly and Co. unit Elanco U.S. Inc. has agreed to acquire Boehringer Ingelheim Vetmedica Inc.'s U.S. feline, canine and rabies vaccines portfolio, in a deal valued at $885 million. The acquisition includes a manufacturing and research & development site, and will expand Elanco's companion animal portfolio, the company said in a statement. The deal is expected to close by early 2017 and is expected to boost Eli Lilly's GAAP earnings by 2019 and its non-GAAP earnings by 2018. Elanco has a portfolio of parparasiticides, pain and dermatology medicines, which will be joined by vaccines for bordetella, Lyme disease, rabies and parvovirus, among others. The deal is one step toward completing the acquisition of Merial by Boehringer Ingelheim. Eli Lilly shares were indicating higher in premarket trade, but are down 3.7% in the year so far, while the S&P 500 has gained 5.2%.

Copyright © 2016 MarketWatch, Inc.