Eli Lilly and Company has launched a strategic review of its subsidiary Elanco Animal Health, the company announced on October 24.
The company, while also announcing its financial results of the third quarter of fiscal year 2017, revealed that it is reviewing strategic alternatives for Elanco Animal Health that could enhance its profitability.
“Elanco has developed into a premier animal health company, and has been an important growth driver and source of revenue diversification for Lilly,” Eli Lilly Chairman and CEO David A. Ricks stated in a press release. “Through acquisitions and organic growth, we’ve grown Elanco to a size and scale that now allows us to consider a variety of options to maximize future value.”
Potential options for the future of Elanco Animal Health could include an initial public offering (IPO), merger, sale or retention of the business, the company stated. Eli Lilly stated that it would provide an update on the strategic review of Elanco no later than the middle of 2018.
Founded in 1954, Elanco provides products and services to improve animal health and food-animal production in more than 70 countries. The company, headquartered in Greenfield, Indiana, employs about 6,500 people, according to the Elanco website.
Elanco’s third quarter financial performance
In the third quarter of 2017, worldwide animal health revenue totaled
As a whole, Eli Lily’s revenue for the third quarter increased 9 percent to $5.66 billion.
Elanco has now completed the full integration of two large acquisitions in Novartis Animal Health and Vetmedica's vaccines portfolio, and most recently announced actions to explore strategic options for Posilac (rbST) and consolidate manufacturing operations.
