Elanco and Medgene Team Up to Combat Avian Influenza in Dairy Cattle

Elanco Animal Health Incorporated (NYSE: ELAN) has entered into an agreement with South Dakota-based Medgene to commercialize a highly pathogenic avian influenza (HPAI) vaccine for use in dairy cattle. This partnership aims to address the ongoing outbreak of HPAI, which has affected nearly 1,000 dairy herds across the U.S. since March 2024, leading to a decrease in milk production and an increase in egg prices. The collaboration between Elanco and Medgene seeks to provide dairy producers with a much-needed solution to curb disease spread and protect their herds.

Medgene reports that its H5N1 vaccine for dairy cattle has met all requirements of the U.S. Department of Agriculture's (USDA) platform technology guidelines and is in the final stages of review for conditional license approval. The USDA previously approved Medgene's vaccine platform technology in cattle, allowing the company to accelerate H5N1 vaccine development. Medgene has existing vaccine manufacturing supply ready to deploy, with the ability to support the U.S. dairy herd.

Elanco's President and CEO, Jeff Simmons, expressed enthusiasm about the partnership, stating that the company is pleased to work with Medgene to bring customers options to fight this devastating disease. Simmons believes that this product will become part of a routine vaccination protocol for the U.S. dairy industry, further strengthening Elanco's diverse dairy portfolio and advancing its One Health platform of animal health solutions. This partnership not only benefits dairy customers but also helps curb disease spread for poultry customers and works to improve egg prices for consumers.

Mark Luecke, CEO of Medgene, is excited about the opportunity to partner with Elanco to quickly bring this much-needed solution to U.S. dairies. Medgene has an established reputation for supporting animal owners and their veterinarians with USDA-licensed platform technology and bioinformatics software to design transformational vaccines.

The USDA's request for information from companies capable of developing and producing cow vaccines against H5N1 indicates that the agency is actively seeking solutions to address the ongoing outbreak. With up to 10 companies expressing interest and the American Association of Bovine Practitioners (AABP) holding closed-door presentations from several potential vaccinemakers, the market for an HPAI vaccine in the U.S. dairy industry appears promising.



As the outbreak continues, the demand for an HPAI vaccine in the U.S. dairy industry is expected to remain high. The market's evolution will depend on factors such as the outbreak's duration and severity, regulatory approval, vaccine availability, and export considerations. Competition among vaccine developers could also influence demand and market dynamics.



In conclusion, the partnership between Elanco and Medgene to commercialize an HPAI vaccine for dairy cattle addresses a critical need in the U.S. dairy industry. As the outbreak continues, the demand for such a vaccine is expected to remain high, with the market's evolution depending on various factors. This collaboration aims to provide dairy producers with a much-needed solution to protect their herds and curb disease spread, ultimately benefiting both dairy and poultry customers, as well as consumers.