Merck Animal Health, a division of Merck & Co., Inc., headquartered in Rahway, New Jersey, USA, has announced its definitive agreement to acquire the aquaculture division of Elanco Animal Health Incorporated for $1.3 billion in cash. This strategic acquisition encompasses an innovative array of medicines, vaccines, nutritionals, and supplements tailored for aquatic species, alongside two manufacturing facilities in Canada and Vietnam, and a research facility in Chile. With a projected completion by mid-year 2024, this deal is pending regulatory approvals and other standard closing conditions.

Expanding Aqua Healthcare Solutions

Upon finalization, Merck Animal Health will significantly enhance its aqua portfolio, incorporating products like CLYNAV, a novel DNA-based vaccine for Atlantic salmon, and IMVIXA, an anti-parasitic treatment for sea lice. Additionally, this acquisition introduces a range of water treatment products for warm water production, perfectly complementing Merck Animal Health’s existing vaccine portfolio for warm water species. The integration of DNA-based vaccine technology is set to fast-track the development of new vaccines, addressing the pressing needs within the aquaculture industry.

Leadership in Aquaculture Health

Rick DeLuca, President of Merck Animal Health, expressed enthusiasm about the acquisition, emphasizing its potential to enrich the company’s offerings and expertise in aquaculture health. “This acquisition…will establish Merck Animal Health as a leader in aqua,” DeLuca stated, highlighting the comprehensive range of products this deal brings to their portfolio.

Jeff Simmons, President and CEO of Elanco Animal Health, acknowledged Merck Animal Health as the ideal strategic buyer, confident in their ability to continue providing value to aquaculture customers and growth opportunities for their team. He praised the dedication of Elanco’s aqua organization in fulfilling their mission to enrich lives with animal protein.

Strategic Growth through Acquisitions

This latest acquisition marks another milestone in Merck Animal Health’s strategy to expand its presence in the aquaculture sector, following several significant purchases, including Scan Aqua AS, Antelliq Corporation, and Vaki, each contributing to Merck’s expertise and product offerings in aquatic animal health.

Financial and Strategic Implications

The acquisition is expected to bolster Merck Animal Health’s position in the global aquaculture market, enhancing its product lineup and manufacturing capabilities. Elanco, on the other hand, is refocusing its efforts on pet health and livestock sustainability, with several U.S. approvals anticipated in the first half of 2024 for products with significant market potential.

The transaction also entails the transfer of approximately 280 commercial and manufacturing employees, signifying Merck’s commitment to innovation and leadership in the aquaculture health sector.

  Aquaculture, Elanco Animal Health, Jeff Simmons, Merck Animal Health, Rick DeLuca