Boehringer Ingelheim has agreed to divest five types of animal health products in the U.S. to settle Federal Trade Commission charges that its proposed asset swap with Paris-based Sanofi would likely be anticompetitive.
Under the proposed swap, Boehringer Ingelheim– based in Germany, with U.S. headquarters in Ridgefield – will acquire Sanofi’s animal care subsidiary, Merial, valued at $13.53 billion, while Sanofi will obtain Boehringer’s consumer health care business unit, worth $7.98 billion, as well as cash compensation of $5.54 billion.
Boehringer is required to provide technical assistance and other transition services so that Elanco and Bayer can independently manufacture and sell the divested products. The FTC order also includes an asset maintenance order and it appoints a monitor to oversee the divestiture process.
Should the Boehringer-Sanofi deal be approved, its impact on the privately held pharmaceutical company’s Ridgefield presence would apparently be minimal, according to Boehringer Ingelheim spokesperson Erin Crew. The company employs about 800 people at its animal health research, production and distribution facilities in St. Joseph, Missouri, most of whom will remain at that site.
“Our St. Joseph site will continue to be one of our largest U.S. facilities and will continue to research, develop, manufacture, distribute and export our animal health products throughout the world,” Crew said. Some St. Joseph personnel will transfer to Georgia
“A small number of Ridgefield-based Boehringer Ingelheim employees who support CHC (consumer health care) will transfer to Sanofi following the close of the swap transaction,” Crew added. “The recent announcements about the headquarters locations for Boehringer Ingelheim Animal Health will have no impact on the Ridgefield site.”
Since July 1, Boehringer Ingelheim has eliminated 244 positions in the U.S., including roughly 180 in Ridgefield; presently the company employs about 2,500 people at the site.