Purchase of vaccine maker allows Elanco to build swine portfolio and deliver antibiotic alternatives.

August 1, 2019

3 Min Read
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Elanco Animal Health Inc. announced Aug. 1 the acquisition of Montreal, Que.-based Prevtec Microbia Inc., a biotechnology start-up specializing in the development of vaccines that help prevent bacterial diseases in food animals.

Prevtec develops and commercializes sustainable solutions as alternatives to antibiotics to improve animal health, production performance and food safety. It is the maker of the Coliprotec line of vaccine products designed to protect pigs against postweaning diarrhea and associated clinical signs caused by Escherichia coli, a prevalent pathogen that causes disease in swine production without effective non-antibiotic control options.

E. coli affects up to 50% of all weaned pigs, leading to diarrhea, suppressed appetite, weight loss and mortality and causing major economic loss for swine operations.

“Elanco's partnership with Prevtec has been very successful and has resulted in delivery of an important non-antibiotic solution for swine producers,” said Ramiro Cabral, executive vice president of international for Elanco. “This acquisition is another example of our approach to partner with companies to introduce novel innovation and further demonstrates our commitment to introduce antibiotic alternatives through internal or external innovation pathways.”

Elanco was the exclusive distributor for Coliprotec in Canada and Europe. These vaccine products are particularly important in Europe given the European Union's direction to phase out the use of the antibiotic colistin and zinc oxide, both of which help producers protect against E. coli today. The transaction also brings Prevtec's research and development programs to Elanco's pipeline, according to the announcement.

"Just as we’ve tackled salmonella with a portfolio of solutions on the poultry side, we’re pleased to add to our portfolio of solutions to help producers fight postweaning diarrhea from E. coli," Elanco told Feedstuffs.

By acquiring Prevtec and bringing the Coliprotec line into Elanco's swine portfolio, Elanco said it will look to expand registration to other key geographies. With more than 1 billion pigs marketed globally each year, pork is the most widely consumed protein and represents a significant market opportunity.

In the past year, Elanco has taken a number of strategic steps to set up for greater success in the swine industry. This includes launching the Prevacent vaccine for porcine reproductive and respiratory syndrome and a recently announced agreement with AgBiome to deliver innovative probiotic solutions to producers' greatest gut health challenges. Elanco said these efforts further demonstrate its commitment to antibiotic stewardship and represent a full suite of alternatives — from vaccines to nutritional health products like enzymes and probiotics — to provide solutions to producers' most difficult challenges.

Under the terms of the purchase agreement, Elanco acquired the company, including inventory and pipeline assets in an all-cash deal for approximately $59.9 million. The agreement also includes a contingent payment of up to about $16.4 million to former Prevtec shareholders in the first quarter of 2022 if certain sales milestones are achieved in 2021.

Founded in 1954, Elanco provides comprehensive products and knowledge services to improve animal health and food-animal production in more than 90 countries. The company, with worldwide headquarters and research facilities located in Greenfield, Ind., is committed to raising awareness about global food security.

Source: Elanco, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.

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