ELANCO AND TONISITY INTERNATIONAL FORM STRATEGIC PARTNERSHIP REGARDING TONISITY’S GUT ENHANCING SWINE PRODUCTS
Greenfield, IN; Fort Collins, CO; Basel, Switzerland and Dublin, Ireland (November 15, 2022) – Elanco Animal Health Incorporated (“Elanco”) (ELAN:NYSE), a global leader in animal health, and Tonisity International Limited (“Tonisity”), an animal health and nutrition company based in Ireland, have entered into a Distribution and Promotion Agreement in respect of Tonisity’s novel, gut enhancing porcine products, Tonisity Px™ and Tonisity PxW™ (hereinafter referred to as “Swine Products”).
Distribution and Promotion Agreement
Under the terms of the Distribution and Promotion Agreement, Elanco will act as exclusive distributor of Tonisity’s Swine Products in Brazil, Belgium, Denmark, France, Germany, Norway, Portugal, Spain, Sweden, and The Netherlands. As exclusive distributor, Elanco will be responsible for marketing, promotion and distribution and sale of the Swine Products in these markets. The specific transition timelines to a distribution via Elanco in early 2023 are currently being elaborated. Both Elanco and Tonisity have agreed to explore collaboration opportunities in other markets, when appropriate. The addition of Tonisity’s Swine Products to Elanco’s portfolio fits perfectly with Elanco’s strategy of promoting the intestinal health of animals, improving their overall health and leading to a more efficient production, providing its customers an innovative product portfolio.
About Tonisity’s Swine Products
Tonisity Px™ is a patented isotonic protein drink that directly feeds the intestinal cells of livestock, such as piglets. This accelerates and increases the absorption of all nutrients into the body of the animal. Tonisity Px™ is administered to piglets in the first week of life and around weaning and is voluntarily consumed even by newborn piglets. The result is higher weight gain, lower mortality and less need for medications for these animals – all producing a high return on investment for producers.
Tonisity is dedicated to research and has completed nearly 200 swine trials throughout the world. In studies examining pre-weaning morality, Tonisity Px™ reduced pre-weaning mortality by 20% which amounts to an extra pig for every three litters. Administration of Tonisity Px™ also resulted in higher weaning weights and 3 kg extra weight at finisher stage, with an improved feed conversion rate. This technology results in a reliable 3:1 return on investment (5:5-1 in a recent China study) at weaning and 5-6:1 at finishing.
Tonisity PxW™ contains the same key bioactives aimed at nourishing the intestine and is delivered through ordinary waterlines to newly-weaned pigs, with no extra labour required. The weaning period and the first 2-3 weeks after weaning are a major danger period for pigs. Often, newly-weaned pigs struggle to maintain sufficient water intake. Reduced water intake correlates to reduced feed intake, which creates a growth lag and contributes to morbidity and mortality.,
Tonisity PxW™ improves water intake by up to 2 times in the first few days after weaning. Pigs given Tonisity PxW™ for five days post-weaning had a 36% reduction in post-weaning mortality and a 18% decrease in post-weaning morbidity. Tonisity PxW™ has also been shown to improve end-Nursery weights by 300 grams when compared to a competitor product. Trials indicate that the return on investment on Tonisity PxW™ is a minimum of 4.5:1.
The Tonisity Products can also be given to pigs of any age at other stress points in production, such as weaning, before and after transport, and for sows, at farrowing or during lactation. While both products have been demonstrated to improve the performance of healthy pigs, trial data also shows that they are particularly useful in support of dehydration and recovery from illnesses such as Porcine Reproductive and Respiratory Syndrome and Porcine Epidemic Diarrhea Virus.
Tonisity’s Swine Products are patented in all key markets and are currently being sold in Europe, Africa, Asia, North America, South America and Australia. Currently, the Isotonic Swine Products are manufactured in Ireland.
Pablo Muniesa, Elanco International Species Lead for Swine and General Manager Iberia, comments: “Elanco has a long history of research in intestinal integrity. We believe this agreement with Tonisity perfectly fits our strategy and complements Elanco’s value offer. We will continue supporting our swine customers with innovative products, services, and knowledge so they can maintain intestinal integrity in their herds and contributing to produce safe, abundant, and affordable food to our growing population.”
Arie Halpern, CEO of Tonisity, comments: “As food security continues to be a major concern across the globe, Tonisity is thrilled to be partnering with Elanco, one of the largest and most respected animal health multinationals in the world. Tonisity’s Px™ and PxW™ products are revolutionary in their ability to dramatically improve the health of swine, while generating more revenues and saving costs for food producers across the world. Further, with the recent ban in the European Union of zinc oxide as an antimicrobial in pig feed, the need for our unique products in that important market is growing by the day. We are confident that this partnership will act as a catalyst in making Tonisity a leading global animal health company.”
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/ESG Pledges – all to advance the health of animals, people, and the planet. Learn more at www.elanco.com.
Tonisity is an animal health and nutrition company based in Ireland that is currently focusing its patented technology in two specific markets: (1) isotonic products for the enhancement of swine production; and (2) novel companion animal nutrition products. Tonisity is focused on creating positive physiological changes by addressing the issue of intestinal health of young animals, thus improving their overall health, leading to better lifetime performance. With respect to novel companion animal products, Tonisity is poised to become the first mover and market leader in a targeted nutrition approach for pets – which is a rapidly growing market across the globe. For more information on Tonisity’s isotonic business, visit www.tonisity.com. For more information on Tonisity’s companion animal business, visit www.doggyrade.com.
Mathieu Cortyl, Managing Director Europe, Asia-Pacific, South America, and Africa – Tonisity International, Director – Tonisity China Holding Limited
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the current expectations of Elanco and Tonisity. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information.
The forward-looking statements and information in this press release include information relating to the business plans of Elanco and Tonisity, including expansion in Japan, Mexico, the United States and China, the processing of products in China and the development of new swine products.
Such statements and information reflect the current views of Elanco and Tonisity. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: Tonisity’s ability to raise capital to maintain its growth and business objectives, Elanco’s ability to negotiate and enter into binding agreements with parties in the Territories, changes in laws and regulations that could adversely affect the business, growth or results of operations of Tonisity or Elanco, Elanco’s ability to attract and retain customers and consumers and impacts of the COVID-19 pandemic.
There are a number of important factors that could cause the actual results of Elanco or Tonisity to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others: limited business history of Tonisity; disruptions or changes in the credit or security markets; results of operation activities; unanticipated costs and expenses, fluctuations in commodity prices, and general market and industry conditions; protection of Tonisity’s intellectual property; disruption at any of Tonisity’s facilities including as a result of the current COVID-19 pandemic; effect of public health crises, including the current COVID-19 pandemic; Tonisity’s supply chain management; availability of suppliers of raw materials; limited or disrupted supply of key ingredients; the availability of key ingredients for the Products; failure to expand production capacity; effect of product innovation; failure to retain current customers and/or recruit new customers; global financial conditions; the effect of product labelling requirements; price of raw materials; consumer trends; publication of inaccurate or unfavourable research and reports; management and conflicts of interest.
Elanco and Tonisity caution that the foregoing list of material factors is not exhaustive. When relying on these forward-looking statements and information to make decisions, readers should carefully consider the foregoing factors and other uncertainties and potential events. Elanco and Tonisity have assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
The forward-looking information contained in this press release represents the expectations of Elanco and Tonisity as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Elanco and Tonisity may elect to, they do not undertake to update this information at any particular time, except as required by applicable laws.
 China study 21-024-P-P
 USA Study 18-014-P-P (PWM -22.8% & final weight +3.2 %): ROI = 3.2:1 at weaning and 5.9:1 at finishing;
UK Study 20-002-P-P (PWM -21% & final weight +2.5 %): ROI = 3.3:1 at weaning and 8.6:1 at finishing.
USA Study 17-061-P-P in disease situation (PRRS): ROI = 7.05:1
 Pluske J, Le Dividich J, Verstegen M. Weaning the Pig – Concepts and Consequences. Weaning pig Wageningen Academic Publishers, 2003.
 Kruse S, Traulsen I, Krieter J. Analysis of water, feed intake and performance of lactating sows. Livest Sci 2011;135:177–183.
 US Study 20047-P-P
 Trials 17-061-P-P USA, 20-038-P-P USA