| Milk Money: rBGH Sold for $300 Million |
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| Written by Kiki Hubbard | |
| Friday, 29 August 2008 | |
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Some of you have followed Monsanto's decision to oust Posilac (rBST or rBGH) from its product line, an announcement the company made just a couple weeks ago. If you haven't heard: a deal's been made. A pharmaceutical company, Eli Lilly, recently threw down $300 million for the engineered drug that boosts milk production in dairy cows. Perhaps this buyer comes at no surprise. One of Lilly's subsidiaries, Elanco, has had a license to sell Posilac in other countries under a different brand name for the last decade. No surprise but maybe confusion. Japan, Australia, Canada, New Zealand, and most European countries remain rBGH-free through outright bans and consumer demand. Where's the international market? Maybe that doesn't matter. With this transaction, Elanco will now have exclusive rights to the U.S. Posilac market. But the U.S. market seems to be nearly nonexistent, too, with even the world's largest grocery chain, Wal-Mart, committed to rBGH-free dairy products. Market or not, Monsanto apparently arranged for a way to keep its finger in the pie. The deal included a "contingent consideration," which, according to Feedstuffs, normally provides "additional compensation based on the product's performance." I guess the $300 million deal on top of making record profits this year simply isn't enough. Sources: Feedstuffs and Plenty Magazine
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It's true what our moms said...we are what we eat. In fact, it's truer than they thought. What I eat doesn't just affect me anymore, it affects all of us.
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