Again, Rahway does need to spend some of that pembrolizumab $25 billion a year somewhere, to reduce tax liabilities around the globe, and begin to prepare for 2035 or so, when it comes off patent (taking into account likely extensions). And it has a very decent veterinary, or animal health business already — so adding farmed fish drug lines… makes sense.

But perhaps most of all, this $1.3 billion cash amount is immaterial to the company. [That’s an enviable strategic advantage — being able to hit singles (and feel good about it!), rather than forever swinging for the fences.] And so… this is all good news:

…Merck agreed to buy Elanco Animal Health Inc.’s unit that makes farmed fish health products for $1.3 billion.

The purchase price represents about 7.4 times the estimated revenue of the aqua business, Elanco said Monday in a statement. Elanco shares rose 5.8% in trading before US markets opened, while Merck’s were little changed….

Up Next:

Harvard Names Ex-Merck CEO Kenneth C. Frazier to Its Board….

And, on that last (bolded) blurb — at Bloomberg, given the recent Bill Ackman nonsense: I am thrilled to see Ackman did not win any seats on the Harvard Board, but Mr. Frazier has been elected to that august body. Hey now — “Karma is a wheel, Billy Ackman!“ Heh.

नमस्ते