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Elanco Animal Health (ELAN) investor relations material

Elanco Animal Health Morgan Stanley 23rd Annual Global Healthcare Conference summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Morgan Stanley 23rd Annual Global Healthcare Conference summary9 Sep, 2025

Strategic priorities and leadership

  • Focus remains on growth, innovation, and cash, with eight consecutive quarters of growth and a strong executive team.

  • Recent CFO appointment brings manufacturing expertise and a fresh perspective on margin and cash improvement.

  • Margin enhancement and cash flow are top priorities, with ongoing efforts to improve operational efficiency and reduce debt.

  • Targeting leverage below 3x by 2027, with continued emphasis on working capital and capital allocation.

Innovation and product pipeline

  • Raised innovation guidance for 2025, with a portfolio approach driving $420 million in first-half innovation revenue.

  • Experior and Quattro have reached blockbuster status; IL-31 monoclonal antibody approval expected by year-end, with commercialization in 2026.

  • Heavy investment continues in R&D and DTC to accelerate product launches and maximize market impact.

  • Pipeline focus is on large, high-impact markets: parasiticides, dermatology, pain, and farm animal health.

Business fundamentals and market trends

  • Base business is stable, with value-based pricing and portfolio bundling strategies supporting growth.

  • Farm animal segment is durable, cash-generative, and underappreciated, with strong opportunities in dairy and beef.

  • Pet segment, especially oral broad-spectrum endecto products, is the fastest-growing area, with Credelio Quattro gaining significant share.

  • Global expansion of Zenrelia and Quattro is underway, leveraging less restrictive international labels and DTC investment.

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Frequently asked questions

Animal Health Experts

Elanco Animal Health Inc. formerly a division of Eli Lilly, is an American company with multinational operations that specializes in animal health products and services. Elanco's portfolio includes a variety of products for both farm animals and pets, focusing on disease prevention, treatment, parasite control, and enhancing productivity in livestock. The company is headquartered in Greenfield, Indiana, and its shares are listed on the NYSE.

Foundation and Divestiture

Elanco was initially founded as a division of Eli Lilly in 1954. Initially, the division focused on feed additives to promote growth in livestock, later expanding to include a broader range of animal health products, such as vaccines and treatments for both livestock and pets. In 2019, Elanco was divested from Eli Lilly, becoming a standalone company. Today, Elanco is one of the largest animal health companies in the world, operating in the same sector as companies such as Zoetis and Virbac.

For Pets

Elanco produces products aimed at both companion animals and livestock. Its revenue is split nearly 50/50 between products for livestock and pets. Its product range for companion animals encompasses therapeutics, vaccines, parasiticides, and dermatology products. These offerings aim to address various health issues, such as flea and tick infestations, arthritis, and chronic pain, as well as supporting overall wellness. This is done both through medications, as well as through things such as anti-flea collars and similar products.

For Livestock

Elanco also plays a significant role in the livestock sector. The company offers a range of products and services aimed at improving the health, productivity, and well-being of farm animals such as cattle, poultry, and swine. Their portfolio for livestock includes vaccines, feed additives, antimicrobials, and products for parasite control and pain management. These products are designed to address health challenges and diseases common in livestock, enhance growth and efficiency, and ensure food safety.

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