Enriching Life Food and Companionship Investor Overview | May 2025 Notices and Disclaimers Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2025 full year, long-term expectations, our expectations regarding debt levels, and expectations regarding our industry and our operations, performance and financial condition, and i ...

Core Viewpoint - Elanco Animal Health Incorporated appears to be turning a corner after years of market share losses and uneven execution, with a stabilized core business and promising innovation pipeline [1][2]. Business Performance - Investor meetings hosted by William Blair have led to an upgrade of Elanco's stock, highlighting the stabilization of the core business, which constitutes about 85% of sales, due to improved execution [2][3]. - The company's recent product launches in both livestock and pet health are expected to enhance growth, potentially contributing around five percentage points to overall growth in 2025 [4]. Product Pipeline and Innovation - Elanco's Zenrelia (ilunocitinib) received a positive opinion from the European Medicines Agency, with expectations for market approval and supply before the end of Q3 [5]. - New farm animal products like Bovaer and Experior, which currently face little to no competition, may increase demand for older products such as Rumensin [5]. Competitive Landscape - Elanco faces significant competition from larger, well-funded companies like Merck and Zoetis, which are also heavily investing in new product development [6]. - Merck's JAK inhibitor could impact the performance of Elanco's Zenrelia, as it is expected to have fewer safety concerns, while Zoetis has a strong track record of improving existing products [6]. Stock Performance - Elanco's stock is currently up 3.05%, trading at $14.18 [7].

Core Viewpoint - Elanco Animal Health Incorporated has released its 2024 Impact Report, emphasizing its commitment to enhancing animal care and the well-being of those who care for them through a new framework focused on four key communities of impact [1][2][3] Group 1: Commitment to Animals - Elanco's strong portfolio and high-impact innovations drive the company's mission to improve animal lives [4] - Key innovations such as Zenrelia, Credelio Quattro, and Pradalex generated $461 million in revenue in 2024, exceeding the target of $420 million to $450 million [7] - The company ranked as the 1 retail parasiticide dispenser in the U.S. and expanded global retail offerings [7] Group 2: Commitment to Customers - Elanco aims to advocate for and earn the trust of customers while solving significant challenges to create value [5] - The company has launched new veterinary-formulated pet supplements under the Advantage family umbrella [7] Group 3: Commitment to Society - Elanco is dedicated to improving public health through animal health initiatives and safeguarding the food system [6] - The company donated over $400,000 worth of products to support animal health and well-being [7] - Elanco's UpLook database helps U.S. dairy farmers earn around $10 million in net returns from carbon credit reductions [7] Group 4: Commitment to Employees - Elanco promotes a purpose-driven culture that encourages ownership, growth, and well-being among its employees [8] - The company achieved a 71% Employee Engagement Score, reflecting a 4% increase from the previous year [11] - Over 26,000 volunteer hours were recorded in 2024, contributing an estimated value of $870,000 across 1,100 global organizations [11] Group 5: Future Outlook - Elanco invites stakeholders to explore the full 2024 Impact Report and is committed to advancing its purpose of making life better for animals, customers, society, and employees [9]

Core Viewpoint - Elanco Animal Health has received a positive opinion from the European Medicines Agency for its product Zenrelia, which is expected to receive marketing authorization in the EU within 60 days [1][2]. Group 1: Product Details - Zenrelia (ilunocitinib) is effective in treating pruritus associated with allergic dermatitis and clinical manifestations of atopic dermatitis in dogs [2]. - The product has already been approved in markets outside the United States, including Brazil, Canada, Japan, and the United States, with additional approvals anticipated in Australia and the United Kingdom in 2025 [3]. Group 2: Regulatory Milestones - The positive opinion from the CVMP is based on the quality, safety, and efficacy data submitted by Elanco, demonstrating a favorable benefit-risk balance [2]. - Elanco has conducted a head-to-head non-inferiority study against the current market leader, yielding positive results [3]. Group 3: Market Launch Expectations - The company expects to launch Zenrelia shortly after receiving marketing authorization, with product supply anticipated in the market before the end of the third quarter of 2025 [3].

Elanco Animal Health Incorporated (ELAN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Investors interested in Medical - Outpatient and Home Healthcare stocks are likely familiar with Elanco Animal Health Incorporated (ELAN) and U.S. Physical Therapy (USPH) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets c ...

Group 1 - Encompass Health (EHC) is a strong performer in the Medical sector, with a year-to-date return of approximately 30.3%, significantly outperforming the sector average loss of 3.5% [4] - The Zacks Rank for Encompass Health is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with earnings estimates having increased by 4.4% in the past quarter [3][4] - The Medical sector consists of 998 individual stocks and currently holds a Zacks Sector Rank of 6, reflecting the average performance of stocks within this sector [2] Group 2 - Encompass Health operates within the Medical - Outpatient and Home Healthcare industry, which includes 17 stocks and has a Zacks Industry Rank of 39, with an average gain of 4.9% this year [6] - Another notable stock in the Medical sector is Elanco Animal Health Incorporated (ELAN), which has achieved a 15% increase year-to-date and has a Zacks Rank of 2 (Buy) [5][6] - Both Encompass Health and Elanco Animal Health are highlighted as stocks to watch for continued solid performance in the Medical sector [7]

Company Overview - Elanco Animal Health Incorporated (ELAN) is currently experiencing significant activity in the options market, particularly with the Jan 16, 2026 $3.00 Call option showing high implied volatility, indicating potential for a major price movement [1] Market Sentiment - The high implied volatility suggests that investors are anticipating a significant price change for Elanco Animal Health shares, which could be driven by an upcoming event [2][4] - Analysts have a mixed outlook on Elanco, with the company holding a Zacks Rank 3 (Hold) in the Medical - Outpatient and Home Healthcare industry, which is in the top 26% of the Zacks Industry Rank [3] Earnings Estimates - Over the past 60 days, there have been no increases in earnings estimates for the current quarter, while six analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from earnings of 25 cents per share to 20 cents [3]

Core Insights - Nearly 90% of U.S. dogs are reported as "itchy dogs" by their owners, with over 80% of owners indicating that pollen levels in their cities exacerbate their dogs' itchiness [1][4] - Pet owners spend an average of $173 more and use two additional treatments during allergy season to manage their dogs' itch [1] - There is a significant emotional toll on dog owners, with 75% feeling hopeless when their veterinarian cannot provide relief for their itchy dogs [3] Treatment and Veterinary Insights - Itching is a leading reason for veterinary visits, with owners typically waiting an average of 6 weeks before seeking help [2] - 90% of veterinarians believe that dog owners wait too long to bring in their itchy dogs, leading to more severe skin issues [2] - A majority of dog owners prefer a single daily pill for treatment rather than multiple pills [2] - 75% of dog owners expressed a need for more affordable options to manage their dogs' itch [2] Emotional and Social Impact - 53% of itchy dog owners feel judged by their community, and 75% feel hopeless when treatment is ineffective [3] - Successful treatment of itchy dogs strengthens the bond between veterinarians and pet owners, with 84% of veterinarians noting increased visits for other issues and 70% of owners referring others to their practice [3] Geographic Insights - In the highest human allergy cities, 85% of dogs experience itch during allergy season, compared to 79% of all U.S. dogs [4] - Specific cities exhibit unique trends, such as Memphis, TN, where owners spend an average of $548 year-round on treatments, significantly higher than the national average of $302 [11]

Summary of Elanco Animal Health Conference Call Company Overview - **Company**: Elanco Animal Health - **CEO**: Jeff Simmons - **Event**: Stifel Jaws and Paws Conference 2025 Key Points Leadership Transition - Elanco announced a proactive leadership change with the departure of the CFO Todd, who has been with the company for over six years, to be succeeded by Bob Ben Hinbergen from Hillenbrand, emphasizing a cultural fit and value creation focus [2][4][6] Financial Performance - Elanco reported a solid first quarter with innovation revenue reaching **$198 million** and a **4% growth** in revenue, guiding for **4% to 6% growth** for the year [7][9][12] - The company has absorbed tariff impacts and earmarked **$25 million** of FX EBITDA tailwind for future potential pharma tariffs [7][12] - Cash debt paydown was raised from **$150 million** to between **$450 million and $500 million**, indicating strong cash flow management [12] Innovation and Growth - Elanco has seen **seven consecutive quarters of growth**, driven by innovation across its product portfolio, including products like Experior, Credelio, and AdTap [8][10][11] - The company is focusing on a basket of **six blockbusters** and additional products launched in the last three years to drive growth [11] - Credelio Quattro has captured **10% market share** shortly after launch, indicating strong market acceptance [29][30] Market Dynamics - The OTC business experienced a decline in January and February due to cold weather but rebounded in March and April, continuing into May [13][16] - Elanco's distribution strategy has expanded to include retailers like Tractor Supply and Target, enhancing accessibility for pet owners [16][17] Product Development - ZENRELIA is positioned for growth with a focus on changing language on labels to enhance vet adoption, with **11,000 vet clinics** currently using the product [41][42] - The company anticipates a significant market opportunity in the derm category, projected to exceed **$2 billion** [45] Margin Expansion Strategy - Elanco is implementing a company-wide margin expansion approach, focusing on gross-to-net pricing strategies and operational efficiencies [22][58][60] - The company expects to leverage new product launches for improved pricing realization in 2026 [62] Regulatory Environment - Elanco is advocating for streamlined regulatory processes and an exemption from pharma tariffs, emphasizing the unique nature of the animal health industry compared to pharmaceuticals [76][77][78] Future Outlook - The company is optimistic about the growth trajectory in both the pet and farm animal segments, with a focus on innovation and market expansion [70][72] - Elanco aims to solidify its position as a leader in the derm market and capitalize on the growing demand for animal protein [67][70] Additional Insights - The company is closely monitoring weather impacts on sales and is prepared to adjust strategies accordingly [16][17] - Elanco's approach to innovation is multi-faceted, focusing on both product differentiation and market penetration strategies [25][62] This summary encapsulates the key discussions and insights from the Elanco Animal Health conference call, highlighting the company's strategic direction, financial performance, and market opportunities.