Merck Animal Health Completes Acquisition of Elanco’s Aqua Business

Rhea-AI Summary

Merck Animal Health, a division of Merck & Co., announced the completion of its acquisition of Elanco’s aqua business, strengthening its position in the aquaculture industry. This acquisition includes a diverse portfolio of vaccines, anti-parasitic treatments, water supplements, and nutrition products targeted at both warm and cold water species.

Notably, Merck now owns the CLYNAV® DNA-based vaccine, which protects Atlantic salmon against pancreas disease, and IMVIXA®, an anti-parasitic treatment for sea lice. This move leverages Merck’s capabilities to meet the growing global demand for quality protein and food safety, ensuring enhanced customer benefits and public health protection.

Positive

• Completion of Elanco aqua business acquisition strengthens Merck’s position in aquaculture.
• Ownership of innovative products like CLYNAV® and IMVIXA® enhances Merck’s vaccine and treatment portfolio.
• Strategic addition of water treatment products for warm water production.
• Expanded capabilities to meet growing global demand for quality protein and food safety.

Negative

• Potential integration challenges with the new business unit.

Insights

Financial Analyst

The acquisition of Elanco’s aqua business by Merck Animal Health bolsters their competitive stance in the aquaculture market. This industry is poised for growth due to increasing global demand for protein sources. The newly acquired products, such as the DNA-based vaccine CLYNAV® and anti-parasitic treatment IMVIXA®, enhance Merck’s product portfolio significantly.

From a financial perspective, this acquisition may lead to increased revenues through the expansion into new markets and product lines. However, investors should consider short-term integration costs and potential disruptions. In the long term, the synergistic benefits of a more comprehensive portfolio in a high-demand industry should contribute positively to Merck’s revenue streams.

Moreover, strategic acquisitions like these can often signal a company’s growth prospects and commitment to innovation. The impact on stock prices may also reflect investor optimism regarding the potential for higher market share and profitability.

Market Research Analyst

This acquisition places Merck Animal Health in a strengthened market position within the aqua industry, addressing growing concerns around food safety and the global demand for sustainable protein sources. The inclusion of advanced products such as CLYNAV® and IMVIXA® not only diversifies Merck’s offerings but also aligns with industry trends toward innovative and efficient solutions in aquaculture.

Market dynamics are favorable with increasing investments in aquaculture driven by the need to meet the protein requirements of a growing population. Merck’s enhanced portfolio could cater to both cold and warm water species, thereby capturing a broader market segment. This strategic move can lead to higher market penetration and establish Merck as a leading player in aquaculture health solutions.

Acquisition delivers industry-leading portfolio, scientific and research capabilities, for enhanced customer benefits

RAHWAY, N.J.--(BUSINESS WIRE)-- Merck Animal Health, known as MSD Animal Health outside of the United States and Canada, a division of Merck & Co., Inc., Rahway, N.J., USA (NYSE:MRK), today announced the completion of its acquisition of the aqua business of Elanco Animal Health Incorporated (NYSE: ELAN). The completion of this acquisition bolsters Merck Animal Health’s position in the aqua industry with a comprehensive approach to promote fish health, welfare and sustainability in aquaculture, conservation, and fisheries.

“With the completion of this acquisition, we are well positioned within the aquaculture industry with a robust and comprehensive portfolio across warm water, cold water, vaccines, anti-parasitic treatments, water supplements and nutrition,” said Rick DeLuca, president, Merck Animal Health. “We are excited to welcome our new colleagues to Merck Animal Health and we look forward to working together, driven by our common purpose of the Science of Healthier Animals^®.”

As a result of the acquisition, Merck Animal Health now owns innovative products such as CLYNAV®, a new generation DNA-based vaccine that protects Atlantic salmon against pancreas disease and IMVIXA®, an anti-parasitic sea lice treatment and water treatment products for warm water production, complementing Merck Animal Health’s vaccine portfolio.

The increasing use of medicines and vaccines, nutritionals and supplements for aquatic species is driven by the growing demand for protein and food safety, ensuring a supply of quality food and protecting public health.

About Merck Animal Health

At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than a century, we’ve been at the forefront of research, bringing forward medicines, vaccines and innovative health solutions for the world’s most challenging diseases. Merck Animal Health, a division of Merck & Co., Inc., Rahway, N.J., USA, is the global animal health business of Merck. Through its commitment to The Science of Healthier Animals^®, Merck Animal Health offers veterinarians, farmers, producers, pet owners and governments one of the widest ranges of veterinary pharmaceuticals, vaccines and health management solutions and services as well as an extensive suite of connected technology that includes identification, traceability and monitoring products. Merck Animal Health is dedicated to preserving and improving the health, well-being and performance of animals and the people who care for them. It invests extensively in dynamic and comprehensive R&D resources and a modern, global supply chain. Merck Animal Health is present in more than 50 countries, while its products are available in some 150 markets. For more information, visit www.merck-animal-health.com and connect with us on LinkedIn, Facebook, X (formerly Twitter) and Instagram.

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA

This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240702965019/en/

Media:

Kim Gorode

(973) 255-8904

Kim.gorode@merck.com

Michael Close

(310) 617-1067

michael.l.close@merck.com

Investors:

Peter Dannenbaum

(732) 594-1579

Peter.dannenbaum@merck.com

Source: Merck & Co., Inc.

FAQ

What did Merck acquire from Elanco?

Merck acquired Elanco’s aqua business, including a portfolio of vaccines, anti-parasitic treatments, water supplements, and nutrition products.

How does the acquisition of Elanco’s aqua business benefit Merck?

The acquisition bolsters Merck’s position in the aquaculture industry with a comprehensive portfolio and enhances its ability to meet the global demand for quality protein and food safety.

What are some key products Merck now owns after the acquisition?

Merck now owns the CLYNAV® DNA-based vaccine for Atlantic salmon and the IMVIXA® anti-parasitic sea lice treatment.

What is the strategic importance of Merck’s acquisition of Elanco’s aqua business?

The acquisition enhances Merck’s scientific and research capabilities in aquaculture, promoting fish health and sustainability while ensuring a supply of quality food.

When was the acquisition of Elanco’s aqua business by Merck completed?

The acquisition was completed as announced by Merck Animal Health in their latest press release.