Drug Giant Eli Lilly Will Now Push Monsanto's Controversial rBGH

This is a follow up of the previous post from last week. I thought that we had heard the last of rBGH. However I guess it is naive to assume that where there is profit to be made, even on a despised dangerous product, someone will be willing to make it. Just look to the tobacco industry for another example. What I don’t understand is why Lilly would want a product which is banned in more places than it is allowed for sale? Is this some sort of ploy to make this stuff look safe and try to convince people that it has some sort of benefits? I guess we will just have to see how this story unfolds and find out if Lilly will be as persistent as Monsanto was at pushing this stuff on dairy farmers and pressing to pass legislation prohibiting the labeling of products which contain this terrifying concoction. Below is the full press release from Ely Lilly announcing this sale.

Elanco Announces Acquisition of Posilac® Dairy Business

Deal Provides Strategic Fit with Lilly's Animal Health Division

Greenfield, IN - Elanco, a division of Eli Lilly and Company (NYSE:LLY), today announced that Lilly has signed an agreement to acquire the worldwide rights to the dairy cow supplement, Posilac® (sometribove), as well as the product's supporting operations, from Monsanto Company (NYSE:MON).

"Global dairy demand is increasing, outstripping supply, and consumers are seeing rapidly rising prices," said Jeff Simmons, president, Elanco. "With the purchase of Posilac, Elanco can enhance its overall product portfolio and work together with the
industry to provide dairy farmers more options and give consumers affordable choices. Critically, we remain focused on the health and care of the cow in working with farmers to increase global milk supply.

"With our rich history and experience in the dairy industry, Elanco is the ideal steward of this vital technology," Simmons said. "Elanco remains committed to using science to address the growing need for safe, affordable food; and to choices for consumers, retailers and producers."

Elanco has exclusively sold sometribove outside of the United States for a decade. Posilac has been safely used for more than 14 years.

Under the terms of the agreement, Lilly will acquire all rights to the Posilac brand, as well as the product's U.S. sales force and its manufacturing facility in Augusta, Georgia. In return, Monsanto will receive a $300 million upfront payment, as well as contingent consideration. The Posilac dairy business manufacturing and sales teams will be integrated into the Elanco business. The transaction is expected to close near the beginning of the fourth quarter of 2008, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act and other customary closing conditions. Lilly confirmed that the acquisition will not result in a change to the company's full-year 2008 financial guidance, as detailed in its second quarter 2008 financial results press release issued July 24, 2008.