Expanding Tick and Itch Season Supports Momentum in Elanco Innovation, Meeting Pet Owner Demand for Health and Wellness Care

Rhea-AI Summary

Elanco (ELAN) reports that innovation in parasiticide and dermatology products is driving stronger base business, price acceleration and market share gains in 2026, with U.S. Pet Health on track for previously communicated high-single digit to low double-digit revenue growth in the second half of the year.

In the first half of 2026, U.S. and International Pet Health each delivered 9% organic constant currency revenue growth year over year, with reported growth of 9% and 15%, respectively. Elanco cites share gains across all four major U.S. categories—dermatology, parasiticides, osteoarthritis pain and vaccines—and roughly 1,100 additional Credelio Quattro clinics quarter-to-date (July–August). Internationally, dermatology revenue grew 9% in the first half of 2026 and Zenrelia gained 10 share points in Europe. The legacy base portfolio has improved from mid- to high-single digit declines in 2023–2024 to around plus or minus low-single digit levels currently and expected forward.

Positive

• U.S. and International Pet Health H1 2026 organic constant currency revenue each +9% year over year
• International Pet Health H1 2026 reported revenue +15% year over year
• U.S. Pet Health H2 2026 expected high-single to low double-digit revenue growth
• Credelio Quattro added approximately 1,100 clinics in July–August 2026
• Zenrelia Europe gained 10 market share points in H1 2026
• Legacy base portfolio improved from mid/high-single digit declines (2023–2024) to approximately flat (± low-single digit) now and expected forward

Negative

• None.

Market Context

On Aug 5, ELAN recorded a 2.42% 24-hour gain after reporting second-quarter results; this update rei...

Analysis

On Aug 5, ELAN recorded a 2.42% 24-hour gain after reporting second-quarter results; this update reinforced that release’s Pet Health growth and pricing trajectory with continued second-half expectations.

Key Figures

U.S. Pet Health growth outlook: High-single digit to low double-digit growth U.S. Pet Health organic revenue growth: 9% International Pet Health reported growth: 15% +5 more

U.S. Pet Health growth outlook

High-single digit to low double-digit growth

Second half of 2026

U.S. Pet Health organic revenue growth

9%

First half of 2026, year over year

International Pet Health reported growth

15%

First half of 2026, year over year

Credelio Quattro clinic additions

Approximately 1,100 clinics

Quarter-to-date in July and August 2026

Europe Zenrelia share gain

10 share points

First half of 2026

Zenrelia relative share gain

5x the competitive entrant

Europe, first half of 2026

U.S. OTC parasiticide seasonality

52% / 48%

First-half / second-half sales split in 2025

Delivery compliance increase

About 50%

Historical increase when pet owners shift to delivery

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   Second-quarter earnings

   24h Move

   +2.4%

   Pet Health growth and raised 2026 guidance supported the current momentum update

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

parasiticide, organic constant currency, jak-1

3 terms

parasiticide medical

"the parasiticide and dermatology categories shifting toward year-round needs"

A parasiticide is a medicine or chemical designed to kill or remove parasites—organisms like fleas, ticks, worms or mites—that live on or inside people, animals or plants. Investors care because development, regulatory approval and sales of these products drive revenue and can affect livestock productivity, public health outcomes and treatment markets; think of parasiticides as the pest control products for living hosts, with impacts on costs and demand across healthcare and agriculture.

organic constant currency financial

"with organic constant currency revenue up 9% year over year each"

A performance measure showing how a company’s sales or revenue changed from one period to another after removing the effects of recent acquisitions or disposals (organic) and filtering out the impact of exchange-rate swings (constant currency). Investors use it like comparing the same store’s sales before and after removing new locations and shifting prices, to judge the business’s true underlying growth without distortions from deals or currency moves.

jak-1 medical

"the market with three Jak-1 products for the longest period"

Janus kinase 1 (JAK1) is an intracellular enzyme that helps carry signals from immune and growth-factor receptors on the cell surface to the cell’s nucleus, controlling genes involved in inflammation, immune responses, and cell growth. It matters to investors because many therapies target or inhibit JAK1 to treat autoimmune diseases, inflammatory disorders, and some cancers; clinical trial results, regulatory decisions, or safety data about JAK1-targeting drugs can materially affect drug developers’ valuations and prospects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Innovation that protects against these pests is driving stronger Elanco base business and overall share gains.
• Elanco confirms U.S. Pet Health is on track to expectations of high-single digit to low double-digit growth in the second half of 2026.
• U.S. Pet Health price gains have accelerated quarter-to-date vs. Q2.

INDIANAPOLIS, Sept. 15, 2026 /PRNewswire/ -- As the calendar turns to fall, Americans expect a seasonal reprieve from ticks and allergies. However, with warming temperatures and expanded pollen seasons we see the parasiticide and dermatology categories shifting toward year-round needs in these billion-dollar plus pet health markets.

Elanco Animal Health Incorporated (NYSE: ELAN), with its innovative pet health portfolio, is meeting robust pet owner demand for health and wellness care, including the evolution toward year-round "tick and itch season" and shifting consumer spend in a growing omnichannel ecosystem. Elanco's global execution to deliver differentiated, high-impact innovation is driving acceleration in year-over-year price gains quarter-to-date (July and August) for the company, led by the U.S. Pet Health business.

"Elanco's continued momentum, building on our strongest first half since our IPO, reflects the strength of our new innovation to increase the standard of care against these growing pet health threats. It underscores the durability of the market and our commitment to our customers to deliver on their higher expectations for care," said Jeff Simmons, President and CEO at Elanco. "We are creating sustainable value for pet owners and the industry through our truly differentiated portfolio of innovation, driving market share and accelerating price gains in what we see as a responsible competitive backdrop."

Evolution Toward Year-Round "Tick and Itch Season"
Changing weather patterns have created a perfect storm. Without prolonged cold required to kill parasites, they're thriving year-round – moving into new areas and driving a sharp increase in tick-borne diseases. In summer 2026, tick-related ER visits in the U.S. reached their highest level since the Centers for Disease Control (CDC) began tracking the data in 2017. While these tick-related ER visits tend to decline through the summer as Americans increase their guard against the pests, the CDC shows visits spike again in the fall¹. Ticks remain active as long as temperatures are above freezing. Meanwhile, the growing season and pollen impacts have increased in 87% of U.S. cities since 1970, with the season expanding by a month in hardest hit regions². Further, pollen concentration has increased more than 20% since 1990³.   

The One Health Crisis: Ticks in the Living Room
The record-breaking ER visit data for tick bites this year reflects a trendline, not an anomaly. With milder winters and warmer springs, tick populations are not only starting earlier and lasting longer, but they are moving into regions that historically saw minimal activity. And, as pets increasingly sit at the center of the family and the home, they have become the critical "connective tissue" in a One Health exposure pathway between the environment and human health.

"One bite is all it takes, and the distance between environmental exposure and human contact is shortening," said Bobby Modi, Executive Vice President, U.S. Pet Health at Elanco. "A pet that picks up a tick outdoors carries that risk directly into the home, often to the most vulnerable members of the family—children and older adults. Speed of kill isn't just a clinical metric; it's a household safety requirement. It's exciting to see Elanco's innovation deliver peace of mind for families, and the resulting business momentum and share growth."  

Elanco's Omnichannel Leadership in the $18 Billion Global Pet Health Market
As the parasite and dermatology seasons expand, Elanco is capturing growth by meeting pet owners across the omnichannel landscape. The company's U.S. and International Pet Health businesses both reported significant momentum in the first half of 2026, with organic constant currency⁴ revenue up 9% year over year each (or 9% and 15% reported growth, respectively), driven by the broadest parasiticide portfolio and fastest expanding dermatology portfolio in the industry.

Key Commercial Milestones and Developments:

• New Innovation Driving Stronger Base and Overall Elanco Market Share Gains: In Q2, Elanco U.S. Pet Health continued to achieve share gains across all four major categories – dermatology, parasiticides, osteoarthritis pain, and vaccines. In the first half of 2026, Elanco increased its overall U.S. market share driven by robust share gains from its new blockbusters and the stabilized based business.

• Market Seasonality: As of 2025, the U.S. OTC parasiticide market has become largely balanced with about 52% of sales in the first half of the year and 48% in the second half. Meanwhile, Credelio Quattro clinic adoption has continued into the second half of 2026, adding approximately 1,100 clinics in the quarter-to-date (July and August).

• Compliance Improving with Increased Pest Pressure: As parasite seasons lengthen, compliance is also growing through home delivery and auto-ship programs, ensuring that protection doesn't take a season off. Our data indicates vet home delivery sales grew nearly twice as fast as in-clinic sales in Q2 with compliance historically also increasing by about 50% when pet owners shift to delivery.

• U.S. Pet Health Second-Half Acceleration: Innovation that protects pets against these pests is valued and rewarded, with Elanco's U.S. Pet Health business accelerating in Q2, and with previously communicated expectations for continued robust gains in the second half of the year. Further, price has accelerated quarter-to-date (July and August), as expected.

• International Market Acceleration: The overall international dermatology market grew 9% in the first half of 2026, with Zenrelia leading the way. Zenrelia growth accelerated in Europe, the market with three Jak-1 products for the longest period. Notably, Zenrelia gained 10 share points in Europe in the first half of 2026, 5x the competitive entrant, driven by high customer satisfaction with the product.

• Stronger Legacy Portfolio: New innovation has also stabilized and strengthened the Elanco base portfolio with this business improving from mid-single to high-single digit declines in 2023-2024 to plus or minus low-single digit levels today and expected forward.

"Elanco's momentum is resilient, driven by our innovation, stabilized base business and the strong execution from the Elanco team," Simmons said. "As 'tick and itch season' expands, innovation with true medical differentiation like broader coverage and superior speed of tick kill is solving real problems that make a difference for customers, fueling share gains and accelerating price. We are delivering on our commitment to customers and our shareholders and driving sustainable long-term value creation."  

____________________
1	Centers for Disease Control Tick Bite Data Tracker | Ticks
2	Climate Central. Longer Growing Season, Longer Allergy Season in 172 U.S. Cities
3	PubMed Central. Anthropogenic climate change is worsening North American pollen seasons
4	Organic constant currency revenue growth represents revenue growth excluding royalty revenue that was sold to a third party, the impact of foreign exchange rates, and revenue attributable to AHV International B.V., which was acquired on April 30, 2026

ABOUT ELANCO

Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our purpose – all to Go Beyond for Animals, Customers, Society and Our People. Learn more atwww.elanco.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning anticipated financial results, expected consumer trends, market dynamics, environmental conditions, competitive landscape and industry growth.  Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important risk factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, and additional factors that could cause actual results to differ materially from forward-looking statements described in the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Contact: Tiffany Kanaga (765) 740-0314 tiffany.kanaga@elancoah.com
Media Contact: Colleen Parr Dekker (317) 989-7011 colleen.dekker@elancoah.com

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SOURCE Elanco Animal Health

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What growth trends did Elanco report for its U.S. and International Pet Health businesses in the first half of 2026?

In the first half of 2026, U.S. and International Pet Health each generated 9% organic constant currency revenue growth year over year. On a reported basis, growth was 9% for U.S. Pet Health and 15% for International Pet Health, driven by the parasiticide and dermatology portfolios.

How is Elanco’s U.S. Pet Health business expected to perform in the second half of 2026?

Elanco states that U.S. Pet Health remains on track with expectations for high-single digit to low double-digit revenue growth in the second half of 2026. The company also reports that U.S. Pet Health price gains have accelerated quarter-to-date (July and August) compared with the second quarter.

What market share and adoption milestones did Elanco highlight for 2026 so far?

In the second quarter, U.S. Pet Health continued to gain share across dermatology, parasiticides, osteoarthritis pain and vaccines, contributing to overall U.S. market share gains in the first half of 2026. Quarter-to-date (July and August), Credelio Quattro added approximately 1,100 clinics, and in Europe, Zenrelia gained 10 share points in the first half of 2026, five times the gain of a competitive entrant.

How has Elanco’s legacy base portfolio performed compared with prior years?

Elanco reports that its legacy base portfolio, which had been experiencing mid-single to high-single digit revenue declines in 2023–2024, has improved to around plus or minus low-single digit levels today and is expected to remain around that level going forward.

What does Elanco mean by organic constant currency revenue growth?

Elanco defines organic constant currency revenue growth as revenue growth that excludes royalty revenue sold to a third party, the impact of foreign exchange rates, and revenue attributable to AHV International B.V., which was acquired on April 30, 2026.

What seasonal pattern did Elanco describe in the U.S. OTC parasiticide market?

As of 2025, Elanco describes the U.S. OTC parasiticide market as largely balanced, with about 52% of sales in the first half of the year and 48% in the second half, reflecting a shift toward year-round demand.

What compliance and channel dynamics did Elanco observe in parasite protection products?

Elanco reports that in the second quarter, veterinary home delivery sales grew nearly twice as fast as in-clinic sales. The company notes that compliance has historically increased by about 50% when pet owners shift to delivery and auto-ship programs, which help maintain year-round protection.