Elanco aqua business purchased by Merck Animal Health
PEI fish health assets a key part of the transaction
Charlottetown, PE – Elanco Animal Health has announced it has entered into an agreement to sell its aqua business to Merck Animal Health for approximately $1.3 billion in cash. Elanco’s aqua business includes products across both warm-water and cold-water species, generating an estimated $175 million in annual revenue. The divestiture includes the transfer of manufacturing sites in Charlottetown, Prince Edward Island and Dong Nai, Vietnam, as well as approximately 280 commercial and manufacturing employees.
In Prince Edward Island, Elanco currently employs 140 skilled workers, producing some of the leading fish health vaccines in the world. The PEI business began in the late 1980’s as a startup called AquaHealth, a spinout of Connaught Labs, with support from the Province of PEI. AquaHeath was one of the founding companies of the PEI BioAlliance when the company employed only 20 people, and later went on to be purchased by Novartis Animal Health in 2000. As a result of solid global sales and investment, Novartis grew the business to over 120 employees and in 2015, Elanco purchased all Novartis Animal Health assets.
“Merck’s purchase of the Elanco aqua assets is a very positive sign for the growth and development of the fish health product business here in PEI and globally,” said Rory Francis, CEO, Prince Edward Island BioAlliance. “Elanco has been a great partner, and we look forward to working with the Merck team to ensure their investment in PEI is a benefit to all.”
The BioAlliance has an existing close relationship with Merck Animal Health, with CEO Rick DeLuca serving as Honourary Chair of the VetHealth Global Animal Health and Nutrition Conference in Charlottetown in 2017.
“We are excited for the acquisition of Elanco’s aqua products, solutions as well as the capabilities and expertise the team brings to our business,” said DeLuca. “We believe this acquisition, coupled with our commercial and scientific prowess, will deliver enhanced benefits for our aqua customers.”
Aquaculture is the fastest growing source of animal protein in the world. Prince Edward Island has established itself as a global centre of expertise in fish health product development and commercialization with nine companies involved in developing fish health technologies, as well as the Atlantic Veterinary College’s fish health programs.
Media Contact
Clara Deacon
Director of Communications and Marketing
PEI BioAlliance
C: 403.701.2815
E: clara@peibioalliance.com
About the PEI BioAlliance
Since 2005, the PEI BioAlliance has coordinated the development and growth of the province’s bioscience cluster and established the conditions for business success. The cluster creates high-quality, Island-based jobs in the areas of human, animal, and fish health and nutrition. The PEI BioAlliance is a partnership of 60 businesses, academic and research institutions, and federal and provincial government agencies, dedicated to establishing the bioscience sector as a key pillar in the economic foundation of the province and Atlantic Canada.
About Elanco
Elanco Animal Health is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders, and society as a whole. With nearly 70 years of animal health heritage, they are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on local and global communities. At Elanco, they are driven by their vision of Food and Companionship Enriching Life and Elanco Healthy Purpose™ Sustainability Initiatives – all to advance the health of animals, people, and the planet.
About Merck
Merck Animal Health, known as MSD Animal Health outside the United States and Canada, is the global animal health business of Merck. Through their commitment to The Science of Healthier Animals®, they offer a wide range of veterinary medicines, vaccines and health management solutions and services, as well as an extensive suite of connected technology that includes identification, traceability and monitoring products.