With growing opposition to sub-therapeutic use of antibiotics in feed, Eli Lilly and Company may be shifting its ingredient strategies toward naturally occurring digestive enzymes. This week, Elanco, the animal health division of Eli Lilly, announced an agreement to acquire ChemGen, Corp., a privately held bioscience company.

ChemGen specializes in developing innovative feed enzyme products that improve the efficiency of poultry, egg and meat production. The digestive enhancers can help animals unlock and better use nutrients in the feed that were otherwise unavailable

The acquisition will provide Elanco with a portfolio of leading feed digestive enzyme products, as well as a pipeline of innovative compounds in development. ChemGen will continue research and administrative operations at its current location in Gaithersburg, Md., and manufacturing activities at its facility in Terre Haute, Ind.

"Meeting the growing demand for food is one of the most critical issues of our time" noted Jeff Simmons, president of Elanco Animal Health. "Acquisition of ChemGen allows Elanco to leverage our expertise in developing trusted, science-based solutions into the enzyme space, which is an emerging field with significant growth potential."

ChemGen's strong presence in the poultry and swine markets in North America and Asia is well suited to Elanco's existing business. William Weldon, vice president of Elanco research and development, added, "Meeting the growing demand for food requires us to develop and commercialize technology that improves the ability of livestock to get the most out of every pound of feed and natural resources used in production."

Bernie Treidl, president of ChemGen said, "Digestive enzymes are naturally-occurring proteins that have been widely used and accepted in many industries for decades. Our focus

in developing innovative feed enzyme products aligns well with Elanco's goal of using technology solutions to meet the world's growing demand for food." 

The transaction is expected to close in the first quarter of 2012, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act. Financial terms of the transaction were not disclosed.