Novartis completes sale of animal health unit to Lilly

Elanco is Lilly's animal health unit

US pharma company Lilly has completed the acquisition of the animal health business from Swiss rival Novartis.

Novartis announced the sale of the unit in April last year as part of a wider range of deals that included the purchase of GlaxoSmithKline's oncology business in part exchange for its vaccines division and the creation of a joint venture formed from GSK and Novartis' consumer health divisions.

The completion of the deal, worth $5.4bn, strengthens Lilly's own animal health business which operates under the name Elanco.

The company now takes ownership of a unit that achieved mid-single digit growth in the third quarter of 2014, contributing to total consumer health sales of $1.1bn for the period.

In addition to acquiring Novartis' portfolio of animal health products, which include medicines for both pets and livestock, Lilly's Elanco will also take control of new facilities, bringing its capabilities to 17 manufacturing sites and 14 R&D locations.

"As a top-tier animal health company, we are better positioned to help our customers respond to the changing external environment and meet increasing demands for animal protein, as well as growing desires for pet ownership," said Jeff Simmons, president of Elanco Animal Health.

Simmons also highlighted the greater diversification of Elanco, which now looks to have an even split in revenues between products for pets and products for livestock.

As previously announced former head of animal health at Novartis George Gunn will retire now the deal is complete.

Several major pharma companies have reshaped their animal health businesses in the past couple of years.

In 2012 Bayer purchased Teva's animal health division while Sanofi acquired India-based Dosch Pharmaceuticals to boost their respective businesses.

By contrast Pfizer has chosen to distance itself from animal health choosing to spin out its business Zoetis as an independent firm.