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.
SOURCE Monsanto Company
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Related links:
http://www.monsanto.com
http://www.prnewswire.com/comp/114341.html/
CONTACT:
Danielle Jany of Monsanto Company,
+1-314-694-2478
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