Novartis India, Elanco extend animal health biz closure date

Novartis India's transfer of its animal health business to an affiliate of Eli Lilly in India as part of a global deal has been extended till June next year due to pending regulatory approvals here.
Although Swiss drug major Novartis had closed the transfer of the business to US-based Eli Lilly globally in January this year, it has not materialised in India as the FIPB has not reconsidered the application for animal health transaction by Elanco India, an affiliate of Eli Lilly.
Subsequently, the closing date has been extended to June 1, 2016 from July 22, 2015 as decided earlier, Novartis India said in a BSE filing.

"As yet, the company understands from Elanco India that the Foreign Investment Promotion Board (FIPB)has not reconsidered its application for the Animal Health Business, although the company is continuing to cooperate with Elanco India, to the extent necessary...," the firm said.
Novartis India has been informed by Elanco that 'it is advisable to submit a formal application to the Competition Commission of India(CCI) for its review of the animal health transaction'. On July 9, the application was submitted to CCI.
Now the two companies have inked an agreement as per which "the completion of the animal health transaction is subject to Elanco India obtaining written approval from the CCI to consummate completion of the transaction or written confirmation from body that it does not have any jurisdiction to review the Animal Health Transaction," it added.

Novartis India said the closing of the animal health transaction is also conditional upon the approval of FIPB and the receipt of all applicable and regulatory approvals from concerned authorities, among other matters.
The firm announced in November 2014 that its board had approved the transfer of the animal health division as a going concern by way of a slump sale to Elanco India Pvt Ltd, for a consideration of Rs 86.68 crore on or before July 22, 2015.
In April 2014, Novartis had agreed to sell its global animal health business to Eli Lilly and Co for about USD 5.4 billion in an all-cash transaction.