In the washup following Elanco's 2020 takeover of Bayer's global animal health business, private veterinary products producer Troy Animal Healthcare has picked up popular Australian and New Zealand sheep parasite control products Avenge+Fly, Zapp, Encore and Maggo.
The former Bayer external parasite lines, currently manufactured in NZ, will be brought onshore to be made at Troy's big, decade-old plant in Sydney.
The sale price has not been revealed.
The deal followed a two-year, $8 billion merger process between Bayer Animal Health and Elanco which closed last August, creating the world's second biggest animal health business.
Elanco's acquisition of Bayer's Avenge, Piranha and Viper sheep lice treatments raised concerns with the Australian Competition and Consumer Commission because they provided competition with its own Extinosad line, prompting divestment moves.
Australian-owned Troy is best known for producing injectable and oral prescription veterinary lines for equine and companion animals, and Doramate for internal and external parasite treatment in pigs and cattle.
Among other brands, it also makes the 48-hour pain relief product Buccalgesic used during mulesing, castration and dehorning procedures in sheep and cattle.
Chief executive officer Nicolas Shortis said the move into the big volume jetting and pour-on treatment market for agricultural livestock opened up exciting product development opportunities for Troy's research team.
"We see the opportunity to expand on flystrike resistance prevention strategies with these brands, by combining or enhancing existing treatments to overcome resistance problems," he said
Elanco and Bayer had invested in considerable research and development to launch and build these brands, subsequently establishing them as market leaders.
Zapp, Encore and Maggo are registered for the NZ market and Avenge+Fly for lice and blowfly treatments in Australia.
Avenge+Fly's use as a flystrike preventative was particularly relevant as the Australian flock rebuild kicked in after widespread drought, and the wetter La Nina weather cycle currently created potential for escalating fly problems.
Mr Shortis said bringing production to Australia during the next 12 months made sense given the company's capabilities at its Glendenning plant and the volumes currently shipped from NZ to service the local market.
"More than 400,000 litres of Avenge+Fly were sold in Australia last year - that's quite a lot of shipping and transport we can reduce over time," he said.
Troy was established by a veterinarian in 1958 to produce prescription pharmaceutical products specifically developed for animals, then acquired by its current family proprietors in the 1980s.
Until now about 60pc of its business has been centred on companion animals, but the company wants to use its depth of management experience and supply and distribution relationships in the rural marketplace to support strong growth in sheep livestock products.
Its business plans include further development in parasiticides as well as vitamin and mineral supplements.
The Sydney plant, which employs about 60 permanent staff, is expected to increase its workforce by another six to handle the new product lines.
Start the day with all the big news in agriculture! Sign up below to receive our daily Farmonline newsletter.