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Eli Lilly mulling further acquisitions: cfo
Posted on Wednesday, 07 November 2018 15:44
US pharmaceuticals giant Eli Lilly is considering the possibility of making more purchases on a similar scale to its Armo Biosciences takeover, according to the company’s finance chief.
Speaking in an interview with Reuters, Joshua Smiley said proceeds from the sale of Elanco will be used to carry out acquisitions, although he noted that this will be lined up against its capital priorities.
However, he cautioned that large drug mergers are not likely to be a key part of the group’s growth strategy in future.
Smiley stopped short of naming any potential targets or specifying which sectors are likely to be targeted if the firm does take to the acquisition trail.
Eli Lilly paid USD 1.60 billion to acquire Armo Biosciences from Quan Capital Management, RTW Investments and DAG Ventures, among others, back in June.
Around a month earlier, it had agreed to pick up Montreal-headquartered cancer treatment medication developer AurKa Pharma from TVM Life Science Ventures for USD 575.00 million.
Indiana-headquartered Eli Lilly was established in 1876 and now employs around 38,000 people worldwide.
The company employs some 8,000 people and conducts clinical research in more than 55 countries, while its customer base spans 120.
Eli Lilly has just posted its financials for the third quarter of 2018; revenue for the opening nine months of the year totalled EUR 18.12 billion, up from EUR 16.71 billion over the corresponding timeframe of last year.
Net income for the period stood at EUR 2.11 billion, compared to EUR 1.45 billion over the first three quarters of 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,032 deals targeting pharmaceutical preparation manufacturers announced worldwide since the beginning of 2018.
The largest of these was worth EUR 52.31 billion and involved Takeda Pharmaceutical picking up Shire.
© Zephus Ltd