ELAN - Elanco obtains U.S. licensing rights for methane-reducing feed additive

Elanco Animal Health (NYSE:ELAN) has obtained the exclusive U.S. licensing rights to Bovaer, methane-reducing feed additive approved in Europe, Brazil, Chile and Australia for beef and dairy cattle. The transaction announced on Monday follows a strategic alliance with Royal DSM, under which the duo will work together to obtain U.S. authorization for the product. Per the terms, the Dutch bioscience company is set to receive royalty income from Elanco’s U.S. Bovaer sales, in addition to a single-digit millions upfront payment as well a portion of product supply from Elanco (ELAN). Studies have indicated that Bovaer has potential to cut methane emissions for dairy cows by nearly 30% and for beef cattle by even higher percentages. Elanco (ELAN) projects more than $200 million of annual revenue potential for Bovaer, with initials contributions expected by mid-decade. The transaction is unlikely to impact the Elanco’s (ELAN) previously disclosed financials, the company said.

For further details see:

Elanco obtains U.S. licensing rights for methane-reducing feed additive