Eli Lilly can dismember animal health unit

Pharmaceutical Eli Lilly, of the United States, said on Tuesday, 24, who are considering selling your business or dismemberment of animal health, a segment which contributed 15% of the total revenue of the company last year but which has been pressured by the strong competition in the last few years. According to J.P. Morgan''s estimate, the Eli Lilly can achieve between $ $14 billion and $ $16 billion with the sale of the unit, known as Elanco.
Lilly said that among the alternatives are an initial public offering (IPO), merger or the sale of the unit. The company also said that it can continue with Elanco after parsing.
According to Lilly''s CEO, Dave Ricks, the company decided to analyze the options for Elanco because I''ve joined a couple of acquisitions that helped boost global sales – mainly the purchase of Novartis animal health Division, in 2015, $ $5 billion. In addition, Lilly was more dependent on animal health business as a stable source of revenue many years ago, when the expiration of patent medicines was affecting your core business sales, said.
Elanco''s sales totaling $ $740.6 million in the third quarter of this year, an increase of 5% compared with the same period last year. The recipe with treatments for animals of production decreased 6% in the period, reflecting in part a strong competition in the cattle industry in the USA. Already sales of products for pets have increased 35%.
The result was driven mainly by the acquisition of the portfolio of vaccines for pets of Boehringer Ingelheim Vetmedica, completed in January of this year.