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Elanco to sell Posilac business to Brazilian animal health leader

Article-Elanco to sell Posilac business to Brazilian animal health leader

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New owner of Elanco's Posilac business looks to be Union Agener in Brazil.

Union Agener, one of Brazil’s largest animal health companies, looks to be the new owner of Elanco Animal Health’s Posilac business. The deal also will include Elanco’s Posilac manufacturing facility in Augusta, Ga.

The purchase price was not disclosed.

For a transitional period, Elanco will continue to support and distribute Posilac in currently served markets.

Union Agener is part of the União Química Farmacêutica Nacional group, which is one of Brazil’s largest pharmaceutical manufacturers. This deal provides Union Agener with its first manufacturing facility outside of Brazil.

Union Agener’s animal health division provides products for companion animals, cattle, sheep, goats and pigs. The pet division includes hygiene products, anesthetics, antiparasitics, antimicrobials and a dermatological line. The firm's food animal offering features reproduction products.

Posilac is a recombinant bovine somatotropin molecule delivered as an injectable supplement. It is designed to increase milk production in dairy cattle. The product is approved for sale in Brazil and is allowed in other nearby markets such as Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.

Elanco confirmed its intent to sell the Posilac assets last fall. The company entered the agreement with Union Agener prior to revealing details of its upcoming initial public offering.

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