January 27, 2012

Eli Lilly's animal health division to buy feed enzyme maker

Drugmaker Eli Lilly and Co.'s Elanco animal health division is planning to buy a privately held maker of feed enzyme products.

Terms of the purchase of ChemGen Corp. were not disclosed. Lilly said Tuesday the deal is expected to close in the first quarter.

Lilly, headquartered in Indianapolis, said feed enzymes are naturally occurring digestive enhancers that help animals make better use of feed nutrients. ChemGen has locations in Gaithersburg, Md., and Terre Haute, Ind.

Lilly is the world's 10th-largest drug maker by annual revenue, according to the latest rankings from drug data firm IMS Health. The company lost the US patent protecting its all-time best seller, the antipsychotic Zyprexa, from generic competition last fall and faces other patent expirations.

It has cited its animal health business as a key source of future revenue growth, along with its pipeline of drugs under development and sales in Japan and emerging markets like China.

Lilly reports its fourth-quarter earnings performance January 31.