Elanco Animal Health has entered into an agreement with Connecticut-based TriRx Pharmaceuticals, a global contract development and manufacturing organization (CDMO), for the sale of the company’s sites in Shawnee, KS, and Speke, UK.
 
The sale of the sites includes the physical assets at both locations along with the transfer of about 600 employees. The companies have also entered into a long-term supply agreement for the facilities to continue to manufacture existing Elanco products.
 
“Completing this evaluation and taking decisive action to streamline our footprint less than a year after closing our acquisition of Bayer Animal Health was critical to accelerate and strengthen our margin expansion efforts and increase our agility and optionality, while enhancing our value creation opportunity and long-term competitiveness,” said Jeff Simmons, president and CEO, Elanco Animal Health. “It is clear that pursuing avenues for full capacity is best for the future of the Shawnee and Speke plants and the teams based there. TriRx is well positioned to improve site utilization and create opportunity for the employees, while becoming an important long-term manufacturing partner for Elanco.”
 
Tim Tyson, chairman and CEO, TriRx, said, “We are excited for the opportunity to enter into a long-term partnership with Elanco and welcome the employees at both Speke and Shawnee into our organization. We have been impressed with the high caliber people and capabilities at both sites and we look forward to partnering to drive increased utilization and long-term success.”
 
The sale of the Shawnee facility is expected to close in the second half of 2021, while Elanco expects closing on the sale of the Speke facility by early 2022.