Aug 20, 2008
ST. LOUIS, Aug. 20 /PRNewswire-FirstCall/ -- Monsanto Company (NYSE: MON) announced today that it has entered into an agreement to sell its POSILAC® 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® 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
CONTACT: Danielle Jany of Monsanto Company, +1-314-694-2478
Web site: http://www.monsanto.com/
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