Remember when Monsanto cried ‘uncle’ and placed a “for sale” sign on Posilac, aka rBGH, aka rBST, aka that artificial hormone that consumers — and most major buyers, from Starbucks to Kroger to Wal-Mart — rejected?
Turns out Monsanto found a sucker buyer: Eli Lilly is going to make the product a part of its Elanco animal health unit.
It’s actually not much of a surprise. Elanco — a company that I vote Most Likely To Have Been Named By Focus Groups — has been marketing rBGH outside the U.S. for a decade. Which is curious, because the product has been rejected by Japan, Australia, Canada, New Zealand, France, England, Spain, Ireland, Greece, Italy, Portugal, the Netherlands, Poland, Sweden, Switzerland, Finland, Germany, Ireland, Norway, Denmark, Romania, and all nine of the remaining European Union member nations.
(So whom is Elanco selling it to? Beats me. Maybe Nauru or Azerbaijan or some such place).
The price tag to make rBGH part of the Lilly family? A cool $300 million, plus “contingent consideration,” which I think translates to “a little extra if your company is more successful with this clunker of a product than we were.” If Wall Street is any indication, though, they won’t be; the day after the deal was announced, shares of Monsanto rose $2.60, or 2.3 percent, to $115.46 while Eli Lilly fell 10 cents to $47.70 in trading after the opening bell. Turns out traders consider rBGH a hot potato, too.
I’m sure that rBGH’s new owner won’t downplay any risks or anything. Nah, not Eli Lilly. But as long as they don’t try to distort the market and eliminate free choice by banning rBGH labeling, as Monsanto tried to do, I’ll be okay.
If they do, however, I’ll need a little something for the inevitable depression, anxiety, and panic that will ensue. Wait. What did you say? Oh, really??? Great. Turns out Eli Lilly’s got a product for each of those, too.
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