Bayer to sell its animal drug unit at $7.6bn as Monsanto trial drags on

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Bayer to sell its animal drug unit at $7.6bn as Monsanto trial drags on

On Tuesday, the 20th of August 2019, Elanco Animal Health had agreed to purchase German multinational pharmaceutical, Bayer AG’s veterinary drugs unit at a $7.6 billion cash and stock buyout deal what in effect would make Elanco the second largest manufacturer of pets’ and livestock’s medicines.

In point of fact, latest sell-off of veterinary drug unit of Leverkusen-based Bayer AG, had been the latest spin-off in the fast-growing pet’s medicine market, while Eli Lilly & Co., engaged in production of psychiatric drugs and its US rival Pfizer had also divested their veterinary medicine businesses over the recent months.

Nonetheless, latest deal for Bayer AG would likely to proffer a breather to the German pharmaceutical, as it had been drowned under around $63 billion in debts that came alongside its purchase of US-based Monsanto last year, while hundreds of lawsuits in claims and liabilities over Monsanto’s cancer-causing weedkiller Roundup had also prompted the Leverkusen-based bioscience behemoth to sell another low profit-margin subsidiary.

Nonetheless, followed by the reveal of the deal, the two companies had been quoted saying in a joint statement on Tuesday (August 20th) that world’s second-largest biotech company, Bayer AG would receive $5.3 billion in cash and $.23 billion worth of Elanco stocks at a price of $33.60 per share, Elanco’s 30-day average share price as of August 6th.