Financial Performance & Guidance - Elanco's Q1 2025 revenue exceeded guidance by $25 million[9] - Adjusted EBITDA for Q1 2025 exceeded guidance by $26 million[9] - Adjusted EPS for Q1 2025 exceeded guidance by $005[9] - The company is raising its 2025 revenue guidance due to foreign exchange tailwinds, while maintaining adjusted EBITDA guidance of $830-$870 million and adjusted EPS guidance of $080-$086[11] - Elanco expects $450-$500 million of gross debt paydown in 2025[10] Revenue Analysis - Elanco achieved 4% organic constant currency revenue growth in Q1 2025[10, 14] - Q1 2025 total Elanco revenue was $1193 million, a decrease of 1% compared to $1205 million in Q1 2024[29, 31] - US Farm Animal revenue increased by 17% to $230 million in Q1 2025 compared to $197 million in Q1 2024[31] - International Farm Animal revenue decreased by 12% to $316 million in Q1 2025 compared to $360 million in Q1 2024, but increased 2% on an organic constant currency basis[31] Innovation & Portfolio - Q1 2025 innovation revenue contribution was $198 million[10, 18] - Elanco is raising its 2025 innovation sales target to $660-$740 million[10, 17, 20]

Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Contact: Tiffany Kanaga (765) 740-0314 or tiffany.kanaga@elancoah.com Media Contact: Colleen Parr Dekker (317) 989-7011 or colleen.dekker@elancoah.com Elanco Animal Health Reports First Quarter 2025 Results Accelerating Debt Paydown in 2025 GREENFIELD, Ind (May 7, 2025) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the first quarter of 2025, provided guidance for the second quarter of 2025, and updated guidance for the full ...

Core Insights - Elanco Animal Health Incorporated reported financial results for Q1 2025, exceeding guidance for revenue, adjusted EBITDA, and adjusted EPS, with a 4% organic constant currency revenue growth and a revenue of $1,193 million, a decline of 1% year-over-year [2][4][7] - The company raised its 2025 revenue guidance to a range of $4,510 to $4,580 million, attributing the increase to favorable foreign exchange rates and strong performance in its diverse portfolio [2][19] - Elanco's adjusted net income for Q1 2025 was $184 million, or $0.37 per diluted share, reflecting a 9% increase compared to the same period in 2024 [15][19] Financial Performance - Q1 2025 revenue was $1,193 million, down 1% year-over-year, but showed a 4% organic constant currency growth [4][7] - Reported net income for Q1 2025 was $67 million, compared to $32 million in Q1 2024, with adjusted EBITDA at $276 million, a 6% decrease from the previous year [15][17] - The net leverage ratio as of March 31, 2025, was 4.4x adjusted EBITDA, with an improved year-end target of 3.9x to 4.3x [17][19] Business Segments - Pet Health revenue was $635 million, a decrease of 1% year-over-year, with a 1% increase when excluding foreign exchange impacts [8][9] - Farm Animal revenue was $546 million, down 2% year-over-year, but showed a 7% increase when excluding unfavorable impacts from the aqua divestiture and foreign exchange rates [9][10] - The company achieved approximately 10% dollar share of broad-spectrum sales in U.S. vet clinics for Credelio Quattro™ and over 35% penetration for Zenrelia™ in U.S. clinics [5][6] Guidance and Outlook - For the full year 2025, Elanco expects adjusted EBITDA of $830 to $870 million and adjusted EPS of $0.80 to $0.86, maintaining previous guidance despite macroeconomic uncertainties [19][21] - The company anticipates a revenue headwind of approximately $5 million in Q2 2025 due to unfavorable foreign exchange rates, but expects 4% to 6% organic constant currency revenue growth excluding these impacts [23][24] - Operating expenses are projected to increase by approximately 11% year-over-year in constant currency, driven by strategic investments in the innovation portfolio [23][24]

Group 1 - Elanco Animal Health announced the sale of future tiered royalties and commercial milestones related to Xdemvy for $295 million in cash, aimed at accelerating debt reduction [1] - The proceeds from the sale will help Elanco achieve a net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025 [1] - Elanco plans to repay portions of its outstanding term loans, which is expected to reduce interest expenses by approximately $10 million [2] Group 2 - Xdemvy, the first lotilaner-based product approved for human use, addresses Demodex blepharitis and is licensed to Tarsus Pharmaceuticals for exploration of human health applications [3] - The agreement covers tiered royalties on Xdemvy's U.S. net sales from April 2025 through August 2033 [3] - Elanco retains rights to all royalty payments on net sales outside the U.S. and any future human applications of lotilaner beyond ophthalmic solutions [4] Group 3 - Elanco is scheduled to release its Q1 2025 financial results, with analysts expecting adjusted earnings per share of 31 cents and sales of $1.21 billion [4] - The current stock price of Elanco is $9.75, which is below the 200-day moving average of $12.34, indicating potential bearish sentiment [6] - Recent trading saw Elanco's stock decrease by 1.03% to $9.65 [7]

Core Insights - Elanco Animal Health announced the sale of future tiered royalties and commercial milestones related to XDEMVY for $295 million in cash, aimed at accelerating debt reduction and achieving a net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025 [1][3] - The transaction is expected to reduce interest expenses by approximately $10 million, offset by the sale of about $10 million in royalties based on Elanco's initial 2025 guidance [1] Company Overview - Elanco Animal Health is a global leader in animal health, dedicated to innovating and delivering products and services to prevent and treat diseases in farm animals and pets, with a 70-year heritage in the industry [7] - The company is focused on high-impact innovation and aims to enhance its core business sales growth in 2025 [3] Product Development - Lotilaner was exclusively licensed to Tarsus Pharmaceuticals in 2019 for human health applications, and in 2023, XDEMVY became the first lotilaner-based product approved for human use, specifically for treating Demodex blepharitis [2] - Elanco retains rights to all royalty payments on net sales outside the U.S. and any future human applications of lotilaner beyond ophthalmic solutions [4] Strategic Partnerships - The collaboration with Blackstone Life Sciences and Blackstone Credit & Insurance is recognized as a significant investment to support Elanco's goals and the potential impact of XDEMVY on patients [3][9]

Core Insights - Elanco Animal Health announced the sale of future tiered royalties and commercial milestones related to XDEMVY for $295 million in cash, aimed at accelerating debt reduction and achieving a net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025 [1][3] - The agreement includes royalties from U.S. net sales of XDEMVY from April 2025 through August 2033, while Elanco retains rights to royalties from sales outside the U.S. and future human applications of lotilaner beyond ophthalmic solutions [4] Company Overview - Elanco is a global leader in animal health, dedicated to innovating products and services for disease prevention and treatment in farm animals and pets, with a 70-year heritage in the industry [7] - The company is focused on high-impact innovation and aims to enhance core business sales growth in 2025, leveraging the cash from the royalty sale to support its deleveraging goals [3] Product Development - Lotilaner was exclusively licensed to Tarsus Pharmaceuticals in 2019 for human health applications, and in 2023, XDEMVY became the first lotilaner-based product approved for human use, specifically for treating Demodex blepharitis [2][4] - The collaboration between Elanco and Tarsus has led to the rapid adoption and commercial success of XDEMVY, addressing a significant health need for patients suffering from a common eyelid disease [3]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Elanco Animal Health Incorporated due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1] Group 1: Allegations and Complaints - The class action complaint filed against Elanco alleges that during the Class Period, the company made materially false and misleading statements regarding its business and operations [2] - Specific allegations include that Zenrelia was less safe than represented, and that Elanco was unlikely to meet its timeline for U.S. approval and commercial launch of Zenrelia and Credelio Quattro [2] - The complaint asserts that these misrepresentations led to an overstatement of the company's business and financial prospects [2] Group 2: Contact Information - Long-term stockholders of Elanco are encouraged to contact Bragar Eagel & Squire, P.C. for more information regarding the claims and their rights [3] - The law firm provides contact details for inquiries, emphasizing that there is no cost or obligation for stockholders [3][6] Group 3: About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in various complex litigations [4] - The firm operates in both New York and California, focusing on commercial and securities litigation [4]

Core Insights - Elanco Animal Health celebrates the second annual National Parvo Awareness Day to raise awareness about canine parvovirus, a highly contagious and often fatal disease affecting puppies [1][9] - The Canine Parvovirus Monoclonal Antibody (CPMA) has received conditional approval from the USDA and has significantly improved survival rates for infected puppies, with a 93% survival rate reported [5][9] - Elanco aims to save 1 million puppies from parvovirus by 2030 and emphasizes the importance of making CPMA widely available, especially in resource-strained shelter environments [6][9] Company Initiatives - Elanco has launched ParvoTrack, a real-time online tool for tracking parvovirus outbreaks, allowing pet owners and veterinarians to self-report cases and receive alerts [6][9] - The company has reported thousands of parvo cases since the launch of ParvoTrack, with significant outbreaks noted in states like Texas, Arizona, and Florida [6][9] - Elanco is committed to increasing access to CPMA and encourages clinics and shelters to adopt this treatment to combat parvovirus effectively [6][7] Treatment Impact - Puppies treated with CPMA spend an average of 1.87 fewer days in the hospital, alleviating the emotional burden on veterinary staff and facilitating quicker reunions with families [5][9] - Real-world usage of CPMA has shown a 93% survival rate for parvo-infected puppies, marking a significant advancement in treatment options [5][9] - Testimonials from veterinarians highlight the positive change in attitudes towards parvovirus outbreaks since the introduction of CPMA, emphasizing its critical role in treatment [7][9]

Company Overview - Elanco Animal Health Incorporated (ELAN) shares increased by 12.6% to close at $9.38, following a relief rally in global markets due to a 90-day pause on tariff hikes by the United States [1] - The stock had previously experienced a 17% loss over the past four weeks [1] Earnings Expectations - Elanco is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year decline of 8.8% [2] - Revenue projections stand at $1.17 billion, which is a decrease of 3.1% compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Elanco has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - Elanco currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - Elanco is part of the Zacks Medical - Outpatient and Home Healthcare industry, which includes other companies like Astrana Health, Inc. (ASTH) [3] - Astrana Health's consensus EPS estimate has decreased by 3.5% over the past month to $0.28, representing a year-over-year change of -9.7% [4] - Astrana Health also holds a Zacks Rank of 3 (Hold) [4]

Core Viewpoint - Elanco Animal Health Incorporated will announce its first quarter 2025 financial results on May 7, 2025, and will hold a conference call to discuss the performance with the investment community and media [1][2]. Company Overview - Elanco Animal Health is a global leader in animal health, focusing on innovating and delivering products and services for the prevention and treatment of diseases in farm animals and pets [3]. - The company has a 70-year heritage in animal health and aims to create value for farmers, pet owners, veterinarians, stakeholders, and society [3]. - Elanco is committed to improving animal health while making a meaningful impact on local and global communities, driven by its vision of "Food and Companionship Enriching Life" and sustainability pillars [3].