Eli Lilly and Company Acquires ChemGen Corp.

Posted by |27 January 2012

GREENFIELD, Indiana, United States– Eli Lilly and Company has acquired ChemGen Corp., a privately held bioscience company specializing in the development and commercialization of feed enzyme products that improve the efficiency of poultry, egg, and meat production, according to Elanco, Eli Lilly’s animal health division.

Feed enzymes are naturally occurring digestive enhancers that can help animals unlock and better use nutrients in the feed that were otherwise unavailable.

The acquisition will provide Elanco with a portfolio of leading feed enzyme products, as well as a pipeline of innovative compounds in development. Upon closing of the transaction, ChemGen will become a wholly-owned subsidiary of Lilly and an operating unit of Elanco.

“Meeting the growing demand for food is one of the most critical issues of our time,” Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health said in a press release. “This acquisition allows Elanco to leverage our expertise in developing trusted, science-based solutions into the enzyme space, which is an emerging field with significant growth potential. ChemGen’s strong presence in the poultry and swine markets in North America and Asia is well suited to Elanco’s existing business, while Elanco’s presence in Latin America and Europe represent growth opportunities. Given Elanco’s global footprint, customer relationships, and market knowledge, we are well positioned to continue to grow product sales, as well as expand to new customers and geographies.”

The transaction is expected to close in the first quarter of 2012, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act and other customary closing conditions.