Launches first-ever tracking site for often-fatal parvovirus outbreaks to Save 1 Million Puppies by 2030 GREENFIELD, Ind., April 23, 2024 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today unleashed a multi-faceted educational campaign – declaring today as the first-ever National Parvo Awareness Day, aimed at bringing awareness to this devastating and often-fatal puppy disease. As part of this effort, Elanco is releasing Parvo is Poop – an eye-catching campaign highlighting the way the vir ...

GREENFIELD, Ind., April 17, 2024 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) will announce its first quarter 2024 financial results on Wednesday, May 8, 2024. Elanco will also conduct a conference call on that day with the investment community and media to further detail the company's performance. The conference call will begin at 8:00 a.m. eastern time. Investors, media, and the general public can access a live webcast of the conference call through the link that will be posted on Elanco ...

New Directors Join the Board's Renamed Finance, Strategy and Oversight Committee Reaches Cooperation Agreement with Ancora GREENFIELD, Ind., April 1, 2024 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced that it has appointed two new independent directors, Kathy Turner and Craig Wallace, to its Board of Directors (the "Board"), effective immediately, expanding the Board to 14 members. Ms. Turner brings significant global experience in both the animal health and broader healthc ...

GREENFIELD, Ind., March 4, 2024 /PRNewswire/ -- Elanco Animal Health (NYSE: ELAN) announced today the appointment of Shiv O'Neill as the company's Executive Vice President, General Counsel and Corporate Secretary. O'Neill will be responsible for the global strategy and operations of the Company's legal team, ethics & compliance organization and ESG efforts. "Shiv's ability to deliver strategic value to Elanco in the short term serving as our interim general counsel combined with her robust experience made i ...

Ancora Nominates Director Candidates Despite Elanco's Meaningful Operational Progress and Good Faith Engagement with the Investor GREENFIELD, Ind., Feb. 29, 2024 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today issued the following statement in response to the submission of four nominees to the Company's Board of Directors by Ancora Holdings Group, LLC ("Ancora"): The execution of Elanco's Innovation, Portfolio and Productivity strategy, led by CEO Jeff Simmons, is working. Elanco has re ...

Financial Data and Key Metrics Changes - In Q4 2023, the company reported revenue of $1.035 billion, a 5% increase, with price growth of 3% [33] - Full year constant currency revenue growth was 1%, with adjusted EBITDA impacted by approximately $18 million due to unexpected items [6][39] - Adjusted earnings per share for the year was $0.89, down from $1.11 in the previous year, primarily due to higher interest expense and tax [38] Business Line Data and Key Metrics Changes - Farm animal business saw a 4% constant currency revenue growth for the full year, driven by poultry, cattle, and swine [12] - U.S. farm animal business also grew by 4%, with strong performance in cattle and swine [13] - Global pet health revenue declined by 1% in constant currency, showing improvement from a 5% decline in 2022 [14] Market Data and Key Metrics Changes - International pet health revenue declined by 1% in constant currency, primarily due to demand pressure in the Spanish retail market [15] - The U.S. pet health business experienced a 5% decline in Q4, offset by innovation revenue and improved retail inventory [33] - The international farm animal segment delivered 4% constant currency revenue growth, driven by price increases and strong poultry demand in key markets [12] Company Strategy and Development Direction - The company is focused on three priorities for 2024: sustained revenue growth, innovation, and improved cash conversion [5][45] - A strategic restructuring was announced to shift resources from farm animal to pet health, aiming to capitalize on larger markets with greater earnings potential [21] - The company plans to invest in expanding its U.S. pet health field force and enhancing its omnichannel strategy [31][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilient demand for animal care, despite economic conditions impacting consumers and livestock profitability [29] - The outlook for 2024 includes expected revenue growth of 1% to 3%, with innovation contributing significantly to this growth [40] - Management acknowledged competitive pressures in the veterinary clinic market but believes the company is well-positioned due to its innovation pipeline and omnichannel approach [87] Other Important Information - The company announced the sale of its aqua business for approximately $1.3 billion, allowing for a focus on larger markets [50] - Free cash flow is expected to improve significantly in 2024, with approximately $300 million available for debt pay down [9][44] - The company completed its ERP system integration, which is expected to free up over $100 million of cash flow for debt pay down in 2024 [17] Q&A Session Summary Question: What are the approval timelines for Zenrelia in international markets? - Management indicated that there are no changes to the approval timelines and will announce any updates as they occur [72] Question: Can you discuss the go-to-market strategy for Zenrelia? - The company is focused on differentiation and execution, with plans to enhance share of voice and awareness in the veterinary clinic market [76][78] Question: How will the restructuring impact the company's distribution strategy? - The restructuring aims to concentrate resources in strategic areas, transitioning non-strategic markets to a distribution model [102] Question: What is the expected impact of competitive pressures in the veterinary clinics? - Management acknowledged high competition but believes their innovation and omnichannel strategy will help mitigate these pressures [87] Question: Can you clarify the incremental spending related to new product launches? - Incremental spending for new product launches will be additional to the existing operating expenses, but these products are expected to be accretive to EBITDA [82]

Elanco Animal Health Incorporated (ELAN) reported $1.04 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 4.8%. EPS of $0.08 for the same period compares to $0.19 a year ago.The reported revenue represents a surprise of +3.53% over the Zacks Consensus Estimate of $999.74 million. With the consensus EPS estimate being $0.10, the EPS surprise was -20.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

2023 Full Year Results 1Non-GAAP financial measures. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations. 2Constant Currency (CC) is a non-GAAP financial measure, representing revenue growth excluding the impact of foreign exchange rates. 3Expected trade name upon approval. $76M of debt paydown in 2023 – expecting ~$300M in 2024; Announced agreement to sell aqua business for ~$1.3B in cash with net proceeds to accelerate debt paydown and deleveraging 2022 to 20 ...

Revenue and Market Performance - The United States accounted for 45% of total revenue in 2023, with China, Brazil, and the United Kingdom being the largest markets outside the U.S.[26] - The top five selling products represented approximately 31% of total revenue in 2023, with none exceeding 10% individually[30] - Approximately 75% of total annual revenue from the Seresto product and 60% from the Advantage Family occurred in the first half of the year, reflecting seasonality in demand[35] - The largest customer represented approximately 10% of revenue in 2023, while the second largest accounted for about 6%[39] - Revenue from shared-class antibiotics decreased by 7% in 2023 compared to 2022, representing 10% of total revenue, while revenue from animal-only antibiotics increased by 6%, accounting for 15% of total revenue[105] - Approximately 90% of revenue from animal-only antibiotics in 2023 resulted from the sale of ionophores, which have not been significantly impacted by regulations or changing market demand[105] - The top five products contributed approximately 31% of total revenue in 2023, indicating a significant reliance on these products for financial performance[115] Research and Development - In 2023, the company received 36 regulatory approvals for new products across major geographies, enhancing both geographic expansion and life cycle management[34] - The company employs over 1,000 individuals in its global R&D and Regulatory Affairs organizations as of December 31, 2023[40] - The company’s R&D strategy includes a build, buy, or partner approach to develop innovations from various sources, including academia and biotechnology organizations[42] - R&D expenses totaled $327 million in 2023, a slight increase from $321 million in 2022, but a decrease from $369 million in 2021[44] - The company launched a canine parvovirus monoclonal antibody treatment, the first approved therapeutic solution for this condition, in 2023[34] Manufacturing and Supply Chain - The company has a global manufacturing network of 18 sites, with 10 located internationally and 8 in the U.S.[46] - The company utilizes approximately 140 contract manufacturing organizations (CMOs) to ensure product quality and supply reliability[47] - The company operates 18 internal manufacturing sites across 11 countries and employs around 140 third-party contract manufacturing organizations (CMOs)[122] - The company experienced supply chain disruptions, particularly with cattle vaccines in 2023, affecting its ability to meet market demand[150] - Manufacturing problems and capacity imbalances have caused product launch delays and inventory shortages, which may continue to affect operations[122] Competition and Market Risks - The company faces intense competition from major players such as Zoetis Inc. and Merck Animal Health, as well as generic drug manufacturers[52] - The animal health industry is highly competitive, with numerous competitors including standalone businesses and large pharmaceutical companies, which may impact the company's market share and profitability[96] - The company faces increasing competition from generic products, which are becoming a larger percentage of overall animal health sales in certain regions[102] - Regulatory restrictions on antibiotic use in farm animals have led to a decline in revenue from shared-class antibiotics and increased demand for alternatives[104] - Disruptive innovations in animal health technologies and alternative protein sources could negatively affect the market for the company's products, impacting its financial performance[101] Financial Condition and Debt - The company had approximately $5.8 billion of outstanding indebtedness as of December 31, 2023, which significantly impacts cash flows from operations dedicated to servicing this debt[138] - Credit rating downgrades in early 2023 by S&P, Moody's, and Fitch have led to increased borrowing expenses for the company[144] - The company is exposed to rising interest rates due to variable-rate indebtedness, which has increased interest expenses and cash paid for interest in 2023[145] - The company does not anticipate paying dividends on its common stock in the foreseeable future, intending to retain earnings for business operations and debt repayment[155] - The company is subject to significant operating and financial restrictions due to its high level of indebtedness, which may limit its business flexibility[142] Regulatory and Compliance Issues - The regulatory landscape includes compliance with multiple agencies, such as the FDA in the U.S. and the EMA in the EU, ensuring product safety and efficacy[58] - The company is subject to various environmental, health, and safety regulations, which require compliance and may involve significant costs related to clean-up obligations[80][81] - The company is subject to significant regulatory compliance risks that could adversely affect its business operations and financial condition[162] - The company is subject to various state, federal, and international laws and regulations, which could materially affect its business operations and financial condition[162] - The company faces potential adverse impacts from increased regulation in the farm animal sector, which could reduce demand for its products if producers become less profitable due to new regulations[167] Employee and Corporate Culture - As of December 31, 2023, the company employed approximately 9,300 full-time employees and 500 fixed-duration employees, with about 30% of the workforce based in the U.S.[82] - The company is committed to fostering an inclusive culture, emphasizing values such as integrity, respect, and excellence to drive employee performance and engagement[83][84] - The company has established a Global Inclusion, Diversity, Equity and Accessibility Council to enhance its workforce diversity and drive business results[87] - The company’s total rewards program includes competitive salaries and benefits, aimed at attracting and retaining talent while rewarding top performers[88] Legal and Litigation Risks - The company faces substantial costs and potential adverse outcomes from ongoing litigation and regulatory investigations, which may materially affect its reputation and product demand[169] - Shareholder class action lawsuits filed in 2020 allege that the company made materially false statements regarding its supply chain and revenue projections[170] - The company received a subpoena from the SEC on July 1, 2021, related to channel inventory and sales practices, and has accrued a liability of $12.5 million as of December 31, 2023[171] - Ongoing discussions with the SEC regarding potential resolution or settlement of disclosure claims have not yet resulted in an agreement[171] - Changes in legal interpretations could increase the company's exposure to liability, particularly concerning product liability claims related to emotional distress[172] Sustainability and Environmental Impact - The company’s farm animal products aim to improve health and sustainability, focusing on efficiency, disease prevention, and food safety[29] - The company has made significant progress in gaining acceptance of farm animal sustainability products, but the degree of acceptance remains uncertain, potentially impacting future results[166] - The company actively engages in initiatives aligned with its Healthy Purpose, focusing on the well-being of animals, people, and the planet[90] Intellectual Property and Innovation - The company holds approximately 6,500 patents and applications across over 90 countries, with a focus on major markets[55] - Key patent expirations include Galliprant's active ingredient patents, which expired in 2021 in most markets, while formulation patents will expire between 2026 and 2031[59] - The company’s ability to enforce its intellectual property rights may be weakened by patent law reforms, potentially increasing costs and limiting patent protection[178] - The company actively seeks to protect its proprietary information but faces risks of unauthorized use and potential legal challenges[180]

Elanco Animal Health Reports Fourth Quarter and Full Year 2023 Results GREENFIELD, IN (February 26, 2024) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported its financial results for the fourth quarter and full year 2023 and provided initial guidance both for the first quarter and full year 2024. "Elanco ended 2023 with momentum, returning to constant currency revenue growth for the full year and delivering 5% growth in the fourth quarter, primarily driven by our farm animal business, innovatio ...