Monsanto sells milk-hormone business to Eli Lilly for $300 million

Mumbai: Monsanto Co, the world's largest seed producer, is selling off all rights to its controversial synthetic milk-producing hormone – Posailac - to pharmaceutical company Eli Lilly & Co for $300 million.

The sale includes the `Posilac' brand name for recombinant bovine somatotropin or rBST, its global sales rights and a Georgia-based manufacturing plant of Monsanto. 

Under the agreement, Lilly, in addition to the upfront payment of $300 million for the purchase of the Posilac brand and related businesses, will also  pay a contingent consideration, details of which are not known yet.

Monsanto said its is exiting non-core business in order to focus attention on its core business of developing genetically modified seeds and pesticides.

Lilly has been distributing Posilac under an exclusive marketing agreement with Monsanto and hopes the deal to expand its veterinary health business. Lilly's animal health division, Elanco, headquartered in Greenfield, Indiana, is the seventh largest animal health company by global sales.

''We're pleased that Elanco is acquiring this business and will continue to provide dairy farmers with this important production tool," said Carl Casale, Monsanto's executive vice president of strategy and operations.