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Elanco to Buy Bayer’s Animal-Health Unit for $7.6 Billion

  • Cash-and-stock deal to bolster pet business and R&D pipeline
  • Big drugmakers have been severing their veterinary businesses
Medicines for dogs from Elanco, above, and Bayer, below. 

Medicines for dogs from Elanco, above, and Bayer, below. 

Photographer: Frank Rumpenhorst/picture alliance via Getty Images

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Elanco Animal Health Inc. clinched the purchase of Bayer AG’s animal-health unit in a deal valued at $7.6 billion, creating one of the biggest stand-alone veterinary-medicine companies in the world.

Elanco, which was spun out from drugmaker Eli Lilly & Co. last year, will finance the acquisition with a mix of cash and stock. German drug giant Bayer AG will receive $5.32 billion in cash and $2.3 billion in Elanco Animal Health common shares. The transaction is expected to close in mid-2020.