Novartis India Ltd, a subsidiary of Germany-based Novartis AG, has approved sale of its animal health business to Elanco India Pvt Ltd, an affiliate of US-based Eli Lilly for Rs 86.68 crore ($14 million), as per a stock market disclosure. This is part of a global deal between Novartis and Eli Lilly.
The parent firm Novartis AG had struck a deal to sell the unit on April 22, 2014 for $5.4 billion in cash.
With a presence in approximately 40 countries and revenue of over $1.1 billion in 2013, Novartis Animal Health is focused on developing better ways to prevent and treat diseases in pets, farm animals and farmed fish.
Novartis India, the local public listed unit of the Swiss drugmaker, generated revenues of around Rs 103.7 crore, which represented around 10.8 per cent of the total revenues of the firm for the year ended March 31, 2014.
Globally, Eli Lilly is acquiring nine manufacturing sites, six dedicated research and development facilities, a global commercial infrastructure with a portfolio of approximately 600 products, a robust pipeline with more than 40 projects in development and an experienced team of more than 3,000 employees.
Upon completion of the acquisition, Eli Lilly's own animal health business, Elanco, will be the second-largest animal health company in terms of global revenue.
Novartis scrip closed at Rs 679.60 each, down 4.86 per cent on BSE in a weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)
