Elanco Animal Health Incorporated announced the U.S. Food and Drug Administration (FDA) has completed its comprehensive, multi-year review of Bovaer® (3-NOP), a first-in-class methane-reducing feed ingredient, and determined the product meets safety and efficacy requirements for use in lactating dairy cattle. Bovaer represents another blockbuster potential innovation in Elanco's portfolio and further accelerates livestock sustainability, the next billion-dollar plus market in animal health. This innovation is expected to accelerate market development and increase innovation in this space.Bovaer works by suppressing the enzyme in the cow's rumen that forms methane.

Feeding one tablespoon of Bovaer per lactating dairy cow per day can reduce methane emissions about 30% or about 1.2 metric tons of carbon dioxide equivalent (CO2e) emissions annually, while creating opportunity for dairy farmers to be financially rewarded for reducing their dairy's carbon footprint.i Feeding one million cows Bovaer would reduce emissions equivalent to removing more than 285,000 cars from the road for a year.ii Feeding Bovaer to cattle has proven to be safe for animals, producers and consumers. Elanco and dsm-firmenich have agreed to expand Elanco's commercialization of Bovaer across North America. In addition to the U.S., Elanco will also now have the right to market Bovaer in Canada and Mexico, where the product is already available for use in beef and dairy cattle.

This expanded agreement can accelerate the opportunity to make climate-neutral cattle farming in North America a reality this decade. This announcement comes at a pivotal time. According to the United Nations, the world's population has until the year 2030 to curb greenhouse gas emissions (GHG) or deal with irreversible impacts to the planet.iii In response, about two-thirds of all Fortune 500 companies have set significant climate commitment goals.iv Reducing enteric methane emissions from cattle?naturally generated through the enteric fermentation process?represents a key opportunity.

Methane lasts about a decade in the atmosphere and is 27x more potent than carbon dioxide at trapping heat?so smaller reductions create greater impact on temperature.v By mitigating methane, the livestock industry can reduce the rate of climate warming and allow food companies and retailers to make meaningful progress toward their Scope 3 emissions goals. Dairy farmers incorporate Bovaer into their rations and quantify the effect using carbon market-friendly tools like UpLook? by Elanco, an insights-based engine designed to quantify greenhouse gas emissions reductions.

The tool utilizes on-farm data and peer-reviewed science to identify key drivers of an operation's carbon footprint and track the progress of sustainability efforts. UpLook connects seamlessly to Athian, the first-of-its-kind livestock carbon inset marketplace. This seamless process allows farmers to quantify their emissions reduction efforts and certify carbon credits for sale.

In addition to the carbon marketplace, the U.S. Department of Agriculture has awarded $89 million in funding to support farms using technologies like Bovaer to reduce their methane emissions.