Elanco Animal Health (ELAN) Piper Sandler 37th Annual Healthcare Conference summary

Margin expansion and operational initiatives

• Margin growth expected from a higher mix of innovative products and proactive cost measures, including automation and AI investments.

• Elanco Ascend, a company-wide initiative, aims to drive EBITDA growth by 2026 through cost management and automation.

• Focus on optimizing SG&A and procurement, with continued investment in R&D and marketing to support top-line growth.

Product innovation and portfolio performance

• Key innovation drivers include Quattro, Zenrelia, Experior, and AdTab, with strong growth expected through 2026.

• Quattro is outperforming expectations, gaining rapid market share due to broad coverage and high palatability.

• Zenrelia is seeing strong momentum, with U.S. clinic penetration near 45% and international double-digit share gains.

• Experior and Bovaer are positioned as blockbusters in the farm segment, with high customer retention and profitability.

• IL-31 monoclonal antibody is expected to launch in the first half of next year, expanding the dermatology portfolio.

U.S. pet health and retail strategy

• Growth in U.S. pet health is driven by innovation, increased share of voice, and expanded distribution channels.

• Direct-to-consumer advertising and broader retail presence are increasing product accessibility.

• Retail business targets pet owners who do not visit vets regularly, with leadership in the OTC flea and tick category and expansion into value segments.