NEWS FEED & ADDITIVE MAGAZINE March 2024 13 Elanco sells aqua business to Merck Animal Health in US Elanco Animal Health Incorporated entered into an agreement to sell its aqua business to Merck Animal Health for approximately $1.3 billion in cash, which represents approximately 7.4x the estimated 2023 revenue of the Elanco aqua business. “A strategic decision resulting from a disciplined process over the last year, the sale of the aqua business allows us to prioritize our investments in larger markets with greater earnings potential over the medium and long term, while creating balance sheet flexibility,” said Jeff Simmons, President and CEO of Elanco Animal Health. “We are focused on delivering consistent high impact innovation and continue to have confidence in our latestage pipeline with six potential blockbuster products expected in the U.S. market by 2025. Further, we are advancing our next wave of development projects, which we believe will contribute meaningful growth for Elanco through the second half of the decade. Importantly, the proceeds from this transaction combined with improved free cash flow from the business, will accelerate deleveraging with net debt to adjusted EBITDA expected in the high-3x to low-4x range by the end of 2025.” The transaction reinforces Elanco’s focus and investment on its most significant value creation opportunities, notably in pet health and livestock sustainability, according to the company's statement. In addition to the expected U.S. approvals in the first half of 2024 for Credelio Quattro™, Zenrelia™ and Bovaer®, Elanco is pursuing a portfolio of clinical development projects that the company expects to have differentiated profiles and blockbuster potential in significant markets with meaningful growth and earnings potential. Elanco’s targeted areas of focus include next generation products for pet parasiticides, dermatology and pain, as well as livestock sustainability. Additionally, the company is opportunistically pursuing platform-aligned targets, such as monoclonal antibodies, and other major emerging spaces of high unmet need. Read more>> Skretting Chile become the first salmon feed mill to be certified under the demanding ASC Feed Standard for aquaculture, which takes into consideration production-related, environmental and social factors. Audited by the certifying company, Control Union, the certification also requires feed mills to source from socially responsible suppliers, guaranteeing the transparency of processes run within the feed manufacturing supply chain, and visualizing through public documents all the progress that a company is making towards sustainability in aquaculture. Therese Log Bergjord, Skretting’s CEO, commented, “We are extremely proud to be the first salmon feed company in the world to achieve ASC Feed Standard certification. This is a highly demanding standard that moves in the right direction towards ensuring a positive impact across our supply chain, but we know that the journey doesn’t end here. We’re already implementing the learnings from Chile to accelerate the certification process across the rest of our operations and, with that, ensure that our customers can keep relying on Skretting to maintain their own certifications for fish and shrimp.” Read more>> Skretting Chile receives ASC Feed certification
RkJQdWJsaXNoZXIy MTUxNjkxNQ==