- Food and Drug Administration confirms Bovaer meets safety
and efficacy requirements
- Elanco expects product launch and added carbon credit value to
producers beginning in the third quarter
- Elanco announces agreement with dsm-firmenich to expand
distribution of Bovaer across North
America, adding both the Canada and Mexico markets
GREENFIELD, Ind., May 28, 2024 /PRNewswire/ -- Elanco Animal Health
Incorporated (NYSE: ELAN) today announced the U.S. Food and Drug
Administration (FDA) has completed its comprehensive, multi-year
review of Bovaer® (3-NOP), a first-in-class methane-reducing feed
ingredient, and determined the product meets safety and efficacy
requirements for use in lactating dairy cattle.
"This monumental announcement has the ability to accelerate the
opportunity for climate-neutral dairy farming while creating a new
revenue stream for dairy farmers across the country," said
Jeff Simmons, President and CEO,
Elanco Animal Health. "We appreciate FDA's commitment to
maintaining high standards for science-based review, while
balancing the need to quickly bring solutions to the market. Bovaer
represents another example of Elanco being a partner of choice in
animal health, where the capabilities of our talented R&D,
regulatory and commercial teams are delivering significant
value.
Simmons continued: "As global temperatures breach new
thresholds, consumers demand more sustainable products and the farm
economy battles profitability challenges, we are excited to bring
Bovaer to the market as a potential solution. Bovaer will create
value for farmers, while helping food companies meet consumer
demands and deliver on their sustainability commitments. As animal,
human and now environmental health continue to converge, Bovaer is
one of the most significant innovations that considers this
intersection and provides consumers, farmers and society what they
want for our future."
Bovaer represents another blockbuster potential innovation in
Elanco's portfolio and further accelerates livestock
sustainability, the next billion-dollar plus market in animal
health. This innovation is expected to accelerate market
development and increase innovation in this space.
Bovaer works by suppressing the enzyme in the cow's rumen that
forms methane. Feeding one tablespoon of Bovaer per lactating
dairy cow per day can reduce methane emissions about 30% or about
1.2 metric tons of carbon dioxide equivalent (CO2e) emissions
annually, while creating opportunity for dairy farmers to be
financially rewarded for reducing their dairy's carbon
footprint.i Feeding one million cows Bovaer would
reduce emissions equivalent to removing more than 285,000 cars from
the road for a year.ii Feeding Bovaer to cattle has
proven to be safe for animals, producers and consumers.
Expanding Access Across North America
Elanco
and dsm-firmenich have agreed to expand Elanco's commercialization
of Bovaer across North America. In
addition to the U.S., Elanco will also now have the right to market
Bovaer in Canada and Mexico, where the product is already available
for use in beef and dairy cattle. This expanded agreement can
accelerate the opportunity to make climate-neutral cattle farming
in North America a reality this
decade.
"We congratulate Elanco and the U.S. dairy sector, on this
important milestone, and will support Elanco by providing initial
supplies from Europe," said
Dimitri de Vreeze, CEO at
dsm-firmenich. "This strategic collaboration exemplifies how we can
accelerate the expansion and adoption of Bovaer in North America to significantly decrease
methane emissions on a large scale, and thereby support global
efforts to combat climate change. Bovaer holds the key to a
transformative shift in the global dairy sector, and launching this
feed ingredient in the U.S. after years of dedicated research,
trials, and industry collaboration is a testament to its global
potential."
Simmons said, "We appreciate the work dsm-firmenich has
invested in this revolutionary product and are pleased they've
recognized Elanco as the global farm animal health leader and the
right partner to bring this solution to farmers across North America."
Why Methane Matters
This announcement comes at a
pivotal time. According to the United Nations, the world's
population has until the year 2030 to curb greenhouse gas emissions
(GHG) or deal with irreversible impacts to the
planet.iii In response, about two-thirds of all Fortune
500 companies have set significant climate commitment
goals.iv Reducing enteric methane emissions from
cattle—naturally generated through the enteric fermentation
process—represents a key opportunity. Methane lasts about a decade
in the atmosphere and is 27x more potent than carbon dioxide at
trapping heat—so smaller reductions create greater impact on
temperature.v By mitigating methane, the livestock
industry can reduce the rate of climate warming and allow food
companies and retailers to make meaningful progress toward their
Scope 3 emissions goals.
"Reducing enteric methane is critical if we are to reach our
climate goals," said Dr. Frank Mitloehner, CLEAR Center Director
and University California Davis Professor and Cooperative Extension
Air Quality Specialist. "It's exciting our farmers will have an
important tool to do that, in Bovaer."
Creating New Revenue Streams for Farmers
Feeding
Bovaer to cows provides a scalable and credible way for dairy
farmers to benefit from being good stewards of the environment by
being financially rewarded for implementing on-farm sustainability
interventions.
"At an added cost of a few cents a gallon of milk, Bovaer can
help food companies meet their climate commitments and consumer
desire for more sustainable dairy products," said Katie Cook, Vice President, Livestock
Sustainability and Farm Animal Marketing at Elanco. "Meanwhile, by
engaging in voluntary carbon markets and securing USDA and state
conservation programming, dairy producers have a scalable
sustainability practice with the potential to create an annual
return of $20 or more per lactating
cow by feeding Bovaervi. Our goal is to make this
opportunity a reality starting this summer, while creating a
self-sustaining carbon inset market for American agriculture."
Dairy farmers incorporate Bovaer into their rations and quantify
the effect using carbon market-friendly tools like UpLook™ by
Elanco, an insights-based engine designed to quantify greenhouse
gas emissions reductions. The tool utilizes on-farm data and
peer-reviewed science to identify key drivers of an operation's
carbon footprint and track the progress of sustainability efforts.
UpLook connects seamlessly to Athian, the first-of-its-kind
livestock carbon inset marketplace. This seamless process allows
farmers to quantify their emissions reduction efforts and certify
carbon credits for sale. In addition to the carbon marketplace, the
U.S. Department of Agriculture has awarded $89 million in funding to support farms using
technologies like Bovaer to reduce their methane
emissions.vii
"Products like Elanco's Bovaer will allow U.S. farmers to be
rewarded for participating in voluntary, producer-led
sustainability efforts," said Gregg
Doud, President and CEO, National Milk Producers Federation.
"Consumers around the world are demanding lower-carbon foods.
Bovaer is an innovation that can help U.S. dairy farmers
remain globally competitive and maintain their role as leaders in
more sustainable dairy production."
Greg Bethard, a dairy farmer from
Kansas who has used UpLook to
quantify his greenhouse gas emissions, expressed his excitement
around today's announcement.
"Dairy producers have made great strides improving the
sustainability of our operations," said Bethard, High Plains
Ponderosa Dairy. "Today's announcement provides access to a product
that has been extensively studied and shown to reduce emissions
from dairy cows. Bovaer is a value-creation opportunity for
dairies—it's about helping us provide product in a manner most of
our consumers are wanting—a lower carbon footprint food."
ABOUT ELANCO
Elanco Animal Health Incorporated (NYSE:
ELAN) is a global leader in animal health dedicated to innovating
and delivering products and services to prevent and treat disease
in farm animals and pets, creating value for farmers, pet owners,
veterinarians, stakeholders and society as a whole. With nearly 70
years of animal health heritage, we are committed to helping our
customers improve the health of animals in their care, while also
making a meaningful impact on our local and global communities. At
Elanco, we are driven by our vision of Food and Companionship
Enriching Life and our Elanco Healthy Purpose™ sustainability
pillars – all to advance the health of animals, people, the planet
and our enterprise. Learn more at www.elanco.com.
The label contains complete use information, including
cautions and warnings. Always read, understand and follow the label
and use directions.
Bovaer is a trademark of dsm-firmenich. Elanco is a trademark
of Elanco or its affiliates. © 2024 Elanco or its
affiliates.
i Kebreab, E., Bannink, A., Pressman, E. M.,
Walker, N., Karagiannis, A., van Gastelen, S., & Dijkstra, J.
(2023). A meta-analysis of effects of 3-nitrooxypropanol on methane
production, yield, and intensity in dairy cattle. Journal of Dairy
Science, 106(2), 927–936.
https://doi.org/10.3168/jds.2022-22211 based on 60 ppm, 25
kg/d DMI, 30% NDF, and 305 day lactation results in a 31.6% or 1.2
MT reduction
ii Greenhouse Gas Equivalencies Calculator | US EPA
iii Transforming our world: the 2030 Agenda for
Sustainable Development | Department of Economic and Social
Affairs
(un.org) at
https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf
iv Commitment issues: Markers of real climate
action in the Fortune Global 500. 2023. Climate Impact
Partners. Available at:
https://www.climateimpact.com/news-insights/fortune-global-500-climate-commitments/
v Intergovernmental Panel on Climate Change Sixth
Assessment Report https://www.ipcc.ch/report/ar6/wg1/
vi Assumes 1.2 mt of CO2e/cow/year abated,
cumulative value of at least $170/mt
of Co2 from USDA incentive plus carbon inset market value less
product and other administrative fees
vii Regional Conservation Partnership Program 2023
Awarded Projects | Natural Resources Conservation Service
(usda.gov)
Media Contact: Season Solorio
(765) 316-0233 season.solorio@elancoah.com
Investor Contact: Kathryn
Grissom (317) 273-9284 kathryn.grissom@elancoah.com
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SOURCE Elanco Animal Health