As part of a new strategic partnership, Elanco Animal Health has gained exclusive licensing rights to develop, manufacture, and commercialize Bovaer®, a revolutionary, methane-reducing feed additive by DSM for cattle, in the U.S. while Royal DSM will receive royalty income from Elanco’s U.S. Bovaer® sales.
Elanco Animal Health Incorporated and Royal DSM have announced a strategic alliance connecting two leading, sustainability-focused companies to address one of society’s most significant opportunities of the decade, mitigating climate change by reducing greenhouse gas emissions from farming. Elanco has secured the exclusive U.S. licensing rights to develop, manufacture and commercialize Bovaer® for beef and dairy cattle.
Bovaer® is a first-in-class and best-in-class methane-reducing innovative feed additive for beef and dairy cattle, already available in Europe, Brazil, Chile and Australia. More than 50 peer-reviewed studies and 48 on-farm trials in 14 countries show Bovaer® consistently reduces enteric methane emissions by approximately 30% for dairy cows and even higher percentages for beef cattle.
The strategic alliance is expected to enable both parties to maximize the opportunity for the product in the U.S. market, once approved, while also nearly doubling previously announced Bovaer® production capacity globally. Elanco will be responsible for the U.S. approval process, commercialization strategy and product supply, supporting DSM supply in markets outside the U.S. Elanco will assess and evaluate the regulatory submission and manufacturing options with the intent to bring Bovaer® to the U.S. market as quickly as possible. Already the State of Indiana, for example, has indicated its support for expanded manufacturing investment in the state as it continues to build public-private partnerships supporting the state’s growing agriculture economy.
“We are excited to partner with DSM to start the process of bringing this game-changing innovation to U.S. livestock producers,” said Jeff Simmons, President and CEO of Elanco. “It will further strengthen Elanco’s efforts to create the livestock sustainability market and the next era of value for farmers by adding to our efforts to reduce, measure and monetize emission reductions, including Experior™, Uplook™ and Athian. We are eager to work with regulators to bring a unique innovation like DSM’s Bovaer® to the U.S. market as quickly as possible to support farmers and positively impact the climate crisis.”