July 15, 2020
Elanco decides against Bayer's Canadian rights in deal, set to divest brands
Elanco Animal Health will divest two of its brands and forgo obtaining Bayer AG's Canadian distribution rights to poultry insecticides as it completes its US$7.6 billion deal to buy Bayer's veterinary drugs unit, Reuters reported.
Elanco will divest its two brands Osurnia and Profener to mitigate competition concerns regarding its acquisition of Bayer's veterinary drugs unit. Osurnia is a canine ear infection treatment product and Profender a feline dewormer.
Canada's Competition Bureau said Elanco's purchase of Bayer's animal health unit would mean reduced competition for that sector in the Canadian market.
In addition, Elanco is restricted from purchasing Bayer's poultry insecticides with darkling beetle coverage for 10 years and cannot have interest in any similar products for two years without advance notice to the bureau.
Bayer's CropScience unit holds poultry insecticides Annihilator Polyzone, Credo, Tempo, and QuickBaytdistribution rights in Canada.
In June, Elanco obtained European Union antitrust clearance to purchase Bayer's veterinary drugs unit after assuring it will sell products to mitigate competition issues.