Bayer, Elanco said aiming to reach animal health deal next week

Elanco Animal Health CEO Jeff Simmons speaks during an interview at the New York Stock Exchange (NYSE) on Sept. 20, 2018. (Photo: Reuters/Brendan McDermid)

Reuters — Germany’s Bayer and U.S. drug firm Elanco Animal Health aim to reach an agreement to combine their animal health businesses as soon as next week, Bloomberg reported Wednesday, citing people with knowledge of the matter.

Elanco plans to pay for at least a part of the deal with its stock and any deal would likely be announced around Elanco’s earnings release next week, the report said.

Reuters reported last month that Bayer had approached Elanco to discuss the possible combination that would create an industry giant.

The German drugmaker is under pressure to raise cash and boost its share price after its US$63 billion purchase of Monsanto. Bayer in May and July announced deals to sell its Coppertone and Dr. Scholl’s businesses respectively.

Bayer and Elanco declined to comment to a Reuters request.

— Reporting for Reuters by Debroop Roy in Bangalore. Includes files from Glacier FarmMedia Network staff.

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