Global US pharmaceutical company Eli Lilly is looking at potentially selling off its Elanco Animal Health business despite repeatedly saying it was a core part of the business.
Releasing third quarter results this week, Eli Lilly said it would decide whether to spin off, sell or keep the unit by mid-2018.
The company said Elanco – established in 1954 – had grown to the point where it could stand alone and that it wanted to “maximise future value”.
Elanco has offices across the world and specialises in poultry products for broilers, breeders, layers and turkeys that protect poultry health and ensure consistent performance by preventing diseases such as coccidiosis and bacterial enteritis as well as controlling mycoplasma and managing the factors that cause Feed Induced Immune Response (FIIR).
Elanco has itself recently acquired Novartis Animal Health and other portfolios. Eli Lilly CEO Dave Ricks said: “Elanco has developed into a premier animal health company and has been an important growth driver and source of revenue diversification for Lilly.
“Through acquisitions and organic growth, we’ve grown Elanco to a size and scale that now allows us to consider a variety of options to maximise future value,” he added.
Meanwhile, Cargill – which has one of the world’s largest poultry businesses – announced this week that it was joining forces with Diamond V to create a leading natural animal health and nutrition business. It follows Cargill’s recent investment in Delacon, the global leader in natural, plant-based phytogenic additives.
David MacLennan, Cargill’s chairman and chief executive officer, said: “This acquisition strengthens Cargill’s and Diamond V’s shared vision to be a leader in creating new solutions for evolving consumer preferences for sustainable and wholesome food production.”