Elanco Animal Health Stock Price, News & Analysis

Elanco Animal Health (NYSE: ELAN) will announce its Q2 2021 financial results on August 9, 2021, at 8:00 AM ET. The announcement will be followed by a conference call to discuss the company's performance with investors and the media. A live webcast will be available on Elanco's website, and a replay will be accessible shortly after the call. With nearly 70 years in the animal health sector, Elanco remains committed to innovating products that enhance the health of farm animals and pets, while also pursuing sustainability through its Elanco Healthy Purpose™ initiatives.

Elanco Foundation has partnered with the JBS Fund for the Amazon to support the RestaurAmazônia Project, aiming for sustainable farming in the Amazon. Over the next three years, Elanco will contribute $450,000 to Solidaridad Network. This initiative seeks to enhance cocoa and cattle production while preserving over 30,000 hectares of forest and reducing greenhouse gas emissions by 53%. Key targets include a 22% increase in livestock and a 40% increase in cocoa production. This partnership highlights Elanco's commitment to environmental conservation and improving rural livelihoods.

Elanco Animal Health has inked a definitive agreement to acquire Kindred Biosciences for $9.25 per share, valuing the deal at approximately $440 million. This acquisition aims to enhance Elanco's footprint in the pet health market, particularly in dermatology, with three potential blockbuster products and additional R&D programs in development. Elanco expects this combination to add $100 million to its 2025 innovation revenue target of $500-$600 million. The transaction is anticipated to close in Q3 2021, pending shareholder and regulatory approvals.

Elanco Animal Health (NYSE: ELAN) has signed a definitive agreement to acquire Kindred Biosciences (NASDAQ: KIN) for approximately $440 million, valuing KindredBio at $9.25 per share, a 52% premium. This acquisition aims to enhance Elanco's presence in the pet health market, particularly in dermatology, with three potential blockbuster products expected by 2025. Elanco anticipates that this deal will contribute an additional $100 million to its innovation revenue forecast of $500 million to $600 million by 2025. The acquisition is expected to close in Q3 2021, pending regulatory approvals.

TriRx Pharmaceutical Services announced an agreement to acquire two facilities from Elanco Animal Health, located in Shawnee, Kansas and Speke, United Kingdom. This acquisition includes physical assets and approximately 600 employees. The deal is set to enhance TriRx's manufacturing capacity and efficiency. A long-term supply agreement will maintain the production of existing Elanco products at these sites. The Shawnee facility is expected to close in the second half of 2021, while the Speke facility is anticipated to finalize by early 2022.

Elanco Animal Health (NYSE: ELAN) is optimizing its manufacturing footprint post-acquisition of Bayer Animal Health by selling its Shawnee, Kansas and Speke, UK sites to TriRx Pharmaceuticals. This includes a long-term supply agreement and the transfer of ~600 employees. The sale is expected to incur impairment charges of $245M to $305M in Q2 2021, impacting EPS guidance by $0.43 to $0.54. Elanco anticipates a reduction in annual capital expenditures by $25M to $30M while expecting gross margins to reach 60% by 2023. Additionally, operations in Brazil will be consolidated to enhance efficiency.

Elanco Animal Health has appointed Marcela A. Kirberger as the new general counsel and corporate secretary, effective June 22. Kirberger brings over 20 years of corporate legal experience, previously serving at Roche Diagnostics and other major firms. Her role will encompass all of Elanco’s legal functions. The company's CEO, Jeff Simmons, highlighted her extensive background in regulated and pharma sectors as a valuable asset. Kirberger is also an advocate for Indiana's life sciences industry and aims to make a positive impact on animal health.

Kindred Biosciences (NASDAQ: KIN) announced positive results from a pivotal study of KIND-030 for treating canine parvovirus. The trial showed a 100% survival rate in dogs treated with KIND-030 compared to 43% in the placebo group. This monoclonal antibody targets canine parvovirus, offering a single injection treatment that eliminates the need for costly hospitalization. The results indicate potential for both treatment and prevention of the disease, with submissions for regulatory approval expected soon. Parvovirus has a mortality rate up to 91% if untreated, making this a critical advancement.