Lilly to acquire Novartis Animal Health

Eli Lilly and Company announced plans to acquire Novartis Animal Health.

Eli Lilly and Company announced an agreement Tuesday to acquire Novartis Animal Health for approximately $5.4 billion.

The company says the all-cash deal will create the world's second-largest animal health company in terms of global revenue. Under the deal, "Lilly will acquire Novartis Animal Health's nine manufacturing sites, six dedicated research and development facilities, a global commercial infrastructure with a portfolio of approximately 600 products, a robust pipeline with more than 40 projects in development, and an experienced team of more than 3,000 employees," the company said in a release early Tuesday.

"Animal health continues to represent an attractive growth opportunity for Lilly. We intend to keep Elanco and to take advantage of the substantial synergies between our animal health and human health businesses," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer.

Novartis researches medicines to improve the quality of life and health of animals, including internal and external parasites in pets and products to treat farm animals and farmed fish.