Elanco Animal Health (ELAN) BofA Securities Animal Health Summit summary

Strategic overview and financial guidance

• Focus remains on growth, innovation, and cash, with a consistent strategy built over the past 3–5 years.

• Delivered above expectations in Adjusted EBITDA, revenue, and EPS for the year.

• Guidance aligns with prior targets: mid-single-digit top-line growth, high single-digit EBITDA growth, and low double-digit EPS growth.

• Innovation revenue target raised from $1.1B to $1.15B, reflecting strong momentum.

• Deleveraging expected to reach low threes by year-end.

Innovation and product performance

• Zenrelia shows strong international uptake, with 40% market share in Brazil and rapid growth in Japan and Europe.

• U.S. label improvements have driven clinic adoption; further label updates are under FDA review, with potential catalysts expected mid-year.

• Befreba set for a phased Q2 launch, expected to further differentiate the portfolio and drive growth.

• Quattro achieved blockbuster status, with $358M in revenue and significant share gains in the Para market.

• Portfolio approach and omnichannel strategy are leveraged to maximize market share and compliance.

Competitive landscape and market dynamics

• Competitive entries, including Merck’s Nuvimelvi, were anticipated and factored into guidance.

• Head-to-head data and efficacy are emphasized as key differentiators against incumbents and new entrants.

• Distribution relationships remain stable and constructive, with buy-sell models optimizing value.

• Market expected to grow by $20B over the next decade, with best medicine and innovation as primary drivers.

• Price increases are planned, with 2026 expected to see accelerated pricing, especially for new products.