Elanco Announces Agreement to Acquire Lohmann Animal Health

         Elanco Announces Agreement to Acquire Lohmann Animal Health

Deal Provides Elanco with a Leading Poultry Vaccine Portfolio and
Manufacturing Capabilities

PR Newswire

GREENFIELD, IN, Feb. 24, 2014

GREENFIELD, IN, Feb. 24, 2014 /PRNewswire/ -- Elanco, the animal health
division of Eli Lilly and Company (NYSE:LLY), today announced an agreement to
acquire Lohmann SE (Lohmann Animal Health), a privately-held company
headquartered in Cuxhaven, Germany. Lohmann Animal Health is a global leader
in the supply of poultry vaccines and also markets a range of feed additives.
The acquisition will establish Elanco as a global poultry leader, solidify
Elanco's vaccine presence, broaden Elanco's product offerings and
significantly augment Elanco's vaccine manufacturing capabilities.

"Effectively competing in the animal vaccine segment is a cornerstone of
Elanco's long-term strategy and is one more way we will expand the value we
create for customers," said Jeff Simmons, senior vice president of Eli Lilly
and Company and president of Elanco Animal Health. "The addition of Lohmann
Animal Health provides a unique opportunity for Elanco to expand our presence
in the global poultry market and to enter the global poultry vaccine market
with a solid base, established products, and global commercial and
manufacturing capabilities."

This acquisition complements Elanco's mission to help the global food chain
deliver a safe, affordable, sufficient food supply. "We believe innovation in
food production is one of the most important ingredients to feeding a growing
global population," Simmons said. "Elanco has continued to invest
significantly in animal health in the past few years, growing businesses and
expanding our pipeline. This acquisition will support further pipeline growth
and build on Elanco's proven track record for successfully delivering new
innovation and integrating acquisitions. We will continue to seek
opportunities that support those efforts."

"As the middle class grows in size and affluence throughout the world, the
demand for eggs and poultry is growing rapidly. However, egg layer
productivity is now shrinking after decades of increases," said William (Bill)
Weldon, vice president of Elanco R&D. "Delivering innovation to this industry
is critical. Without it, we're on pace to double the number of hens needed,
plus the massive resources to support them, in order to meet demand in 2050."

Under the terms of the agreement, Lilly will acquire all assets of Lohmann SE
and its subsidiary, Lohmann Animal Health. These assets include a range of
vaccines and feed additives, commercial capabilities, and manufacturing sites
in Cuxhaven, Germany and Winslow, Maine. No other terms of the transaction
were disclosed.

The transaction is expected to close in the second quarter of 2014, contingent
upon clearance from regulatory authorities and other customary closing
conditions. As a result of business combination accounting adjustments and
transaction costs associated with this acquisition, Lilly has lowered its
full-year 2014 earnings per share guidance to be in the range of $2.72 to
$2.80 on both a reported and non-GAAP basis. Updates, if any, to specific line
item guidance will be provided on the company's first-quarter 2014 earnings
call on April 24, 2014.

About Lohmann Animal Health
Lohmann is a leading manufacturer of feed additives and poultry vaccines,
selling its products in over 80 countries around the world. Headquartered in
Cuxhaven, Germany, Lohmann has a production facility there, a vaccine plant in
Winslow, Maine, and is represented by 18 subsidiaries in Europe, Asia and
North America. The focus of Lohmann is the development of vaccines and food
components that help prevent diseases of animals used in food production.

About Elanco
Elanco is a global, innovation-driven company that develops and markets
products and services to improve animal health and protein production in more
than 75 countries. Elanco employs more than 3,000 people worldwide, with
offices in more than 40 countries, and is a division of Eli Lilly and Company,
a leading global pharmaceutical corporation. Additional information about
Elanco is available at www.elanco.com.

About Eli Lilly and Company
Lilly is a global healthcare leader that unites caring with discovery to make
life better for people around the world. We were founded more than a century
ago by a man committed to creating high-quality medicines that meet real
needs, and today we remain true to that mission in all our work. Across the
globe, Lilly employees work to discover and bring life-changing medicines to
those who need them, improve the understanding and management of disease, and
give back to communities through philanthropy and volunteerism. To learn more
about Lilly, please visit us at www.lilly.com and
http://newsroom.lilly.com/social-channels. C-LLY

This press release contains forward-looking statements about the benefits of
the acquisition of Lohmann SE by Lilly, and the potential of the combined
businesses, including Lohmann's vaccine products. This release reflects
Lilly's current beliefs, assuming that the transaction is successfully closed;
however, as with any such undertaking, there are substantial risks and
uncertainties in the process of implementing the transaction and in the
commercialization of these products. There is no guarantee Lilly will realize
the expected benefits of the transaction, that the commercial assets acquired
will continue to be commercially successful, or that any acquired pipeline
assets will yield commercially successful products. For further discussion of
these and other risks and uncertainties, please see Lilly's latest Forms 10-K
and 10-Q filed with the U.S. Securities and Exchange Commission. The company
undertakes no duty to update forward-looking statements.

Refer to: (317) 276-4076 – Colleen Parr Dekker (Elanco)
            (317) 276-5795 – Mark E. Taylor (Lilly)

Eli Lilly and Company logo.

Logo: http://photos.prnewswire.com/prnh/20031219/LLYLOGO

SOURCE Eli Lilly and Company

Website: http://www.lilly.com
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