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Pfizer to Acquire CSL Animal Health Business

Tuesday December 16, 2003

Pfizer Animal Health has agreed to acquire CSL Animal Health, a division of CSL Limited (Melbourne, Australia), for $A170 million in cash, Pfizer announced today.

The acquisition will enhance Pfizer Animal Health's presence in the Australasian marketplace with CSL's well-received line of livestock and companion animal vaccines, its highly professional sales force, and its advanced manufacturing facilities in Australia and New Zealand.

CSL Animal Health has also built a strong, productive research initiative in Australia. With the largest annual investment in animal health research in the industry, Pfizer expects to further develop CSL's R & D activity, which, to date, has yielded advances including the broadest range of sheep vaccines and other innovative biological products.

In 2002, CSL Animal Health sales increased 6 percent to $A64.7 million. Through the third quarter of 2003, Pfizer Animal Health-which combined with Pharmacia Animal Health in April of this year-reported sales of $A1.5 billion.

"Until now, Pfizer Animal Health has been a mid-tier participant in the important Australian market," said Pedro Lichtinger, president, Pfizer Animal Health. "The acquisition of CSL Animal Health, one of the strongest and most trusted companies in the industry, transforms Pfizer into a leader in Australia. With our complementary product portfolios and organizations, we are confident that we are now well positioned to grow aggressively in both Australia and New Zealand."

"CSL's current product line augments Pfizer's extensive portfolio with innovative vaccines available in Australia," Mr. Lichtinger said.

He added that CSL Animal Health has won special recognition for its development of immunosterilization vaccines, such as Improvac, an alternative to surgical castration to control boar taint, which causes offensive smell and taste in some male swine; and Equity, for the control of estrus in non-breeding horses. "Our eventual goal is to prepare to take these important technologies worldwide," Mr. Lichtinger said. Looking to the future, Ramón Fuenmayor, area president, Asia/ Latin America Region, Pfizer Animal Health, said: "While we plan to leverage CSL's superb sales and marketing capabilities to heighten our position in Australia, our future depends directly on the continuing introduction of new value-added products. CSL's research capabilities here in Australia and its promising R & D pipeline were key drivers of this acquisition."

Mr. Lichtinger noted that CSL Animal Health's U.S. division - Biocor in Omaha, Nebraska -gives Pfizer a manufacturing facility that meets global GMP standards and enables Pfizer seamlessly to consolidate its existing alliance to market CSL's Spirovac, the leading vaccine to stop Leptospira hardjo, a common infection that seriously harms the reproductive capacity of dairy cows.

"Given our success to date with Spirovac, we will look to the Biocor organization to help us accelerate the introduction of line extensions," Mr. Lichtinger said.

The transaction is subject to the necessary regulatory approvals and is expected to close in the first quarter of 2004.

A business of Pfizer Inc, Pfizer Animal Health is a world leader in providing high-quality, innovative health products, including pharmaceuticals and biologicals, for livestock and companion animals.