Elanco Animal Health Inc. acquired privately held pig-vaccine maker Prevtec Microbia Inc. for C$78.5 million plus a contingent payment option.
Montreal-based Prevtec makes the Coliprotec line of vaccine products that protect pigs against post-weaning diarrhea and symptoms caused by the E. coli bacteria. In Europe, death due to post-weaning diarrhea has an estimated cost of €15,000 per year for a 500-sow herd, Elanco said in an Aug. 1 press release.
The Greenfield, Ind.-based animal health company Elanco said the acquisition supports its efforts to build a swine products portfolio and introduce antibiotic alternatives. The company added that it will look to expand registration to other key geographies.
Elanco, which was the exclusive distributor for Coliprotec in Canada and Europe, said these vaccine products are important in Europe given the EU's direction to phase out the antibiotic colistin and zinc oxide, which are used to protect against E. coli.
Under the agreement, Elanco acquired Prevtec, including inventory and pipeline assets in an all-cash deal for C$78.5 million. Former Prevtec shareholders are also eligible to receive a contingent payment of up to C$21.5 million in the first quarter of 2022 if certain sales milestones are met in 2021.