Injecting international growth into a powerful domestic portfolio.
About Grand Labs
Founded in 1972, Grand Laboratories, Inc. was among the fastest-growing and most-respected manufacturers of large animal and livestock vaccines in the U.S. animal health industry, recognized for producing many of the industry’s most efficacious, cost-efficient and widely-used vaccines. With operations in South Dakota and Iowa, Grand Labs marketed and distributed its portfolio of over 100 USDA-licensed and approved animal vaccines throughout North America and, to a lesser extent, into select international markets.
Key Atmospherics at the Time of the Transaction
Despite continuing growth and solid profitability, a top-notch management team and a pipeline of exciting and innovative new products, Grand Labs was facing dramatically increased competition from domestic and international pharmaceutical company rivals, many several hundred times Grand Labs size and with vastly greater capital, resources and distribution capabilities. At the same time, the costs of new product development, new product introductions and compliance with increasingly more stringent USDA, FDA and EPA regulations were skyrocketing.
The Etkin & Company Strategy
The marketing strategy that Etkin & Company developed and executed for Grand Labs leveraged the Company’s portfolio of licenses, new product pipeline, professional management team, deep animal health expertise and know-how, reputation and state-of-the-art laboratories and manufacturing facilities to demonstrate that Grand Labs was the best positioned and most opportunistic acquisition candidate in the global animal health industry. Etkin & Company’s analysis also demonstrated that the successful acquirer of Grand Labs would become a global leader in the fast-growing, increasingly important and highly-profitable large animal vaccine segment of the animal health care industry, without risk and virtually overnight. Finally, our analysis demonstrated that even after paying the shareholders of Grand Labs a record setting value, the cost of the acquisition would be substantially less than the cost of trying to replicate Grand Lab’s business, assets and intellectual property.
The $90+ million transaction that Etkin & Company developed and concluded for Grand Labs shareholders with Novartis Animal Health, Inc., a wholly-owned subsidiary of Swiss-based pharmaceutical and life science company Novartis AG, transformed the market for large animal vaccines and made Novartis a global leader in the large animal vaccine segment of the global animal health care industry.