December 26, 2019
Elanco sells Canadian facility to aquaculture R&D firm
Elanco Animal Health Incorporated (NYSE: ELAN) has signed an agreement to sell its Victoria, Prince Edward Island (PEI) aqua research and development facility to The Center for Aquaculture Technologies Canada (CATC), a leading aquaculture R&D and contract research services company with an established presence in PEI.
The site was added to the Elanco footprint as part of the Novartis acquisition in 2015. Elanco will shift this important capability into its other existing R&D facilities.
"We are extremely grateful for the efforts, hard work and all contributions everyone at the Victoria R&D facility has made to the Elanco pipeline and the industry," said Aaron Schacht, executive vice president of Innovation, Regulatory and Business Development at Elanco. "We are equally pleased to reach an outcome that keeps the site operational in the Victoria community with a group that values furthering the future of aquaculture."
John Buchanan, CEO of CATC, said, "We are excited to continue to grow our aquaculture health and nutrition research services business in PEI, and have great plans for use of the facility."
In September, Elanco announced its decision to seek a buyer for the site. Aquaculture and the company's Charlottetown manufacturing facility continue to be a key component of Elanco's growth, as evidenced by the company's workforce expansion and capital investments at the site over the past two years.
In a separate report by the Veterinary Practice News, Elanco made the September announcement as part of significant, company-wide restructuring plans, which included the cutting of about 250 jobs across multiple locations and departments.
The transaction is expected to close at the beginning of the first quarter in 2020. Financial terms of the deal were not disclosed.