Elanco is investing approximately $100 million to purchase a minority equity stake in China Animal Healthcare Ltd., one of the leading players in the animal health industry in the People’s Republic of China. The investment expands Elanco’s commitment to China, with the goal of providing innovative, safety-enhancing food production solutions to help meet the growing food demands and nutritional needs of the Chinese people. The parties have agreed to a framework to allow for future commercial collaboration activities.

“At Elanco, we are committed to providing innovative solutions to enhance food production and companion animal care. In China, we are working with local stakeholders to improve the health and performance of animals and help to ensure a growing supply of safe, affordable and abundant food,” said Jeff Simmons, president, Elanco. “Our sizable financial investment in China Animal Healthcare builds on our long-term commitment to China. By working with local stakeholders, together, we can make a real difference in the lives of the Chinese people.”

With global population expected to exceed 9 billion in the next 40 years, some of the greatest growth – about 750 million – will come from Asia, driving significant demand for meat, milk and eggs. China is poised to help meet this demand. By the end of this decade the United Nations Food and Agriculture Organization predicts about 25 percent of the production growth for meat will come from China alone.

“In the past few decades China’s government has made significant strides to reduce poverty and improve food security, resulting in unprecedented growth of a middle class that demands a safe, high-protein, affordable diet,” said Eduardo Lopes Alberto, Elanco Country Director in China. “Elanco and China Animal Healthcare are well positioned to help China meet this demand by further working to enhance animal health and productivity.”

Listen to the official announcement here: Elanco Press Conference