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Prevtec Microbia Inc. is pleased to announce that it has signed an agreement to be acquired by Elanco Animal Health Incorporated.
Prevtec is the maker of the Coliprotec® line of vaccine products designed to protect pigs against post-weaning diarrhea (PWD) and associated clinical signs caused by E. coli. E. coli is a highly prevalent pathogen causing disease in swine production without effective non-antibiotic control options. It affects up to 50 percent of all weaned pigs, leading to diarrhea, suppressed appetite, weight loss and mortality. The disease has a considerable effect on animal well-being and is a major cause of economic loss for swine operations. In Europe, mortality due to PWD has an estimated cost of 15,000 € per year for a 500-sow herd.1
“Elanco’s partnership with Prevtec has been very successful and has resulted in delivery of an important non-antibiotic solution for swine producers,” said Ramiro Cabral, executive vice president of International for Elanco. “This acquisition is another example of our approach to partner with companies to introduce novel innovation and further demonstrates our commitment to introduce antibiotic alternatives through internal or external innovation pathways.”
“We are very pleased to come up with this agreement which sums up our combined efforts and early commitment to bring biological products to our industry,” said Michel Fortin, President and CEO of Prevtec Microbia. “Our distribution agreement thus culminates in this exciting opportunity to provide actual and future vaccines to the animal health industry.”
Elanco was the exclusive distributor for Coliprotec in Canada and Europe. These vaccine products are particularly important in Europe given the EU’s direction to phase out the use of the antibiotic colistin and zinc oxide, both among the ways producers’ protect against E.coli today. The transaction also brings Prevtec’s research and development programs to Elanco’s pipeline.
By acquiring Prevtec and bringing the Coliprotec line into Elanco’s swine portfolio, Elanco will look to expand registration to other key geographies. Offering a full range of alternative solutions is particularly important given alternatives do not typically have the same broad spectrum of activity antibiotics deliver. With more than 1 billion pigs marketed globally each year, pork is the most widely consumed protein and a significant market opportunity.
Under the terms of the agreement, Elanco acquired the company, including inventory and pipeline assets in an all-cash deal for CAD $78.5 million (approx. $59.9 million USD). The agreement also includes a contingent payment of up to CAD $21.5 million (approx. $16.4 million USD) to the former Prevtec shareholders in Q1 2022, if certain sales milestones are achieved in 2021.
BNP Paribas acted as exclusive financial advisor to Prevtec in connection with the transaction, and BCF LLP and Gibson, Dunn & Crutcher LLP served as the company’s legal advisors.
1Amezcua R et al 2002. Can J Vet Res. 66:73-78.
August 01, 2019 - Prevtec Microbia Inc.
