Elanco and Tonisity International Form Strategic Partnership

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.

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[1]) at weaning and 5-6:1 at finishing.[2]

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.[3],[4]

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[5]. 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.[6]

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.”

About Elanco

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.

About Tonisity

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.