Thursday, April 11, 2013

Lilly to invest $120m in China Animal Healthcare

Lilly will be investing $120m in two tranches for a 20 percent minority stake in China Animal Healthcare limited.. The money will be utilized to partly fund the delisting Offer announced on 22 May 2012 and repay the convertible bond. 
 
Under the equity investment arrangement, China animal healthcare and Eli Lilly will enter into collaborative arrangement which would be synergistic for both the companies. Under the collaborative arrangements Lilly will grant to China Animal healthcare - a non-exclusive right (with exceptions to be agreed) to distribute certain of Lilly’s products in the PRC.  Lilly will sell and supply to the Company, and the Company will buy from Lilly, such products on a non-returnable basis, subject to certain exceptions. Lilly  will introduce and promote certain of the Company’s products, as may be mutually agreed upon by the parties, to certain large producers in the PRC.
China Animal Healthcare will grant licences to Lilly  in relation to developing, researching and selling certain products utilising certain of the Company’s patent rights and know-how (“CAH Technology”) globally except for the PRC.