Eli Lilly to sell Greenfield Labs to Covance

INDIANAPOLIS Eli Lilly will sell its Greenfield Laboratories to the drug development company Covance, in a deal worth a reported $50 million, according to published reports. Covance said it would offer positions to all 260 Eli Lilly employees currently working at the site, and also said it plans to double or even triple the workforce at the site over the next five years.

As part of the deal, Lilly is promising to give Covance $1.6 billion worth of drug-development business at that site for at least 10 years, allowing the two l to expand their relationship. Covance currently conducts significant preclinical toxicology testing and other early-stage clinical work for Lilly. Covance also will be allowed to perform work for other large pharmaceutical companies at the site.

The deal is expected to close by October. At that time, Covance will assume control of the Greenfield site and most of the operations. All Lilly employees will receive an offer of a position with Covance or will have the opportunity to apply for other, limited roles within Lilly, the two companies said. Employees who choose to depart will receive a competitive severance package, Lilly said.