Elanco, a subsidiary of Eli Lilly, has acquired the worldwide rights to the dairy cow supplement Posilac (sometribove) and the products supporting operations from Monsanto.
Under the terms of the deal, Lilly will pay an initial fee of $300 million (163 million pounds) and a contingent consideration in exchange for the rights to the brand, the sales force for the product in the US and the manufacturing site based in Augusta, Georgia.
Jeff Simmons, president of Elanco, said: "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."
He added that global dairy demand is currently outstripping supply and continues to increase, forcing up prices.
Elanco is a global research-based firm that employs over 2,000 people in over 30 countries worldwide and has been developing products for over 55 years.