Elanco Completes Sale of Aqua Business. Transaction concentrates the company’s focus on significant value creation opportunities and accelerates deleveraging progress. #petproducts #petindustry
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As we continue to narrow our focus on the most significant value creation opportunities, we are pleased to share that we have completed the divestiture of our aqua business to Merck Animal Health for $1.3 billion in cash. This significant step allows us to concentrate on pet health and livestock sustainability, while creating balance sheet flexibility. This transaction, along with increased free cash flow from our operations, accelerates our debt reduction, positioning us to deliver substantial value over time. We expect to pay down $1.33 to $1.42 billion of debt in 2024, ending the year with net debt to adjusted EBITDA in the mid-4x range. As we continue our positive trajectory with three consecutive quarters of underlying revenue growth, and meaningful pipeline progress, we're excited for our next era of growth and innovation! #WeAreElanco https://bit.ly/3RVc3Q8
Elanco Completes Sale of Aqua Business
elanco.com
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President & CEO at Elanco | Passionate about people, growth & leadership at all levels | Relentless in advancing animal care | Committed to food security for all | Future with climate neutral farms | Family
Big news for Elanco! Today the U.S. Food and Drug Administration (FDA) has completed its review of the safety and efficacy data of Bovaer® (3-NOP), a first-in-class methane-reducing feed ingredient, for use in the U.S. dairy industry. With expected launch in Q3 2024. This announcement comes at a pivotal time as global temperatures breach new thresholds and consumers around the world demand more sustainable products. As part of today’s announcement, Elanco and dsm-firmenich have agreed to expand Elanco’s commercialization of Bovaer across North America. Elanco will have the right to market Bovaer in Canada and Mexico in addition to the U.S., further accelerating the opportunity to make climate-neutral dairy farming in North America a reality this decade while creating a new revenue stream for dairy farmers across the country. We are excited to bring this innovative tool to create value for the entire dairy industry. Bovaer is also the first of our Big 3 potential blockbusters that Elanco has committed to delivering this year – strengthening our Farm Animal portfolio and opening the next major Animal Health market. Read more https://bit.ly/4bx6xL3 #WeAreElanco #Sustainability
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Senior Executive in Investment Banking, Management Consulting and Technology Focusing on Food and Agriculture. Led 6 Global Professional Service Practices.
Really important timing. The nature of what we eat is moving to greater protein particularly as over 15% of Americans have tried GLP-1s a number that is certain to increase. These medications almost require higher levels of protein to ensure a lack of muscle atrophy (which impacts the appearance consumers are looking to achieve). Dairy’s portion of protein sales is almost certain to rise due to its relative ease in consuming while on these medications (for most). As for sustainability, while important, the reality is the “bivine burp” problem is substantially larger in emerging countries with less than professional feed and poor genetics. Importantly, just as nutrition is often what promotes human health, it’s nice to see that animal feed is taking a lead in promoting large farm animal health #AFIA.
President & CEO at Elanco | Passionate about people, growth & leadership at all levels | Relentless in advancing animal care | Committed to food security for all | Future with climate neutral farms | Family
Big news for Elanco! Today the U.S. Food and Drug Administration (FDA) has completed its review of the safety and efficacy data of Bovaer® (3-NOP), a first-in-class methane-reducing feed ingredient, for use in the U.S. dairy industry. With expected launch in Q3 2024. This announcement comes at a pivotal time as global temperatures breach new thresholds and consumers around the world demand more sustainable products. As part of today’s announcement, Elanco and dsm-firmenich have agreed to expand Elanco’s commercialization of Bovaer across North America. Elanco will have the right to market Bovaer in Canada and Mexico in addition to the U.S., further accelerating the opportunity to make climate-neutral dairy farming in North America a reality this decade while creating a new revenue stream for dairy farmers across the country. We are excited to bring this innovative tool to create value for the entire dairy industry. Bovaer is also the first of our Big 3 potential blockbusters that Elanco has committed to delivering this year – strengthening our Farm Animal portfolio and opening the next major Animal Health market. Read more https://bit.ly/4bx6xL3 #WeAreElanco #Sustainability
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President & CEO at Elanco | Passionate about people, growth & leadership at all levels | Relentless in advancing animal care | Committed to food security for all | Future with climate neutral farms | Family
Elanco ended 2023 with momentum, returning to constant currency revenue growth for the full year and delivered the second consecutive quarter of constant currency revenue growth of 5% in the fourth quarter. In 2023, we returned the company to growth, doubled innovation sales and exceeded debt pay down, by paying down $76 million dollars of gross debt. Looking forward, we expect our existing portfolio to deliver constant currency revenue growth of 1% to 3% in 2024, before the potential upside of our three late-stage pipeline products with a path toward approval in the first half of 2024. We see growth in both Pet Health and Farm Animal as well as in the U.S. and International. Our team has taken disciplined, decisive actions to improve our earnings potential and leverage profile over time, as evidenced by: • The sale of our aqua business for over a billion dollars of net proceeds; • The restructuring announced today to reallocate resources to higher value creation areas with greater earnings potential; notably Pet Heath and Livestock Sustainability • Our investment in expanding our U.S. pet health field force to enhance share of voice and maximize innovation in our highest margin business area; and • Our focused efforts to manage manufacturing throughput to improve net working capital performance, while investing to support the launch of differentiated products in the years to come. We believe the strategic decisions we are taking will provide the foundation to enable sustained revenue growth and value creation over the medium and long term. We want to thank the global Elanco team for a successful 2023 as well as our amazing customers - farmers, veterinarians and pet owners around the world. We do believe our mission of "Making Animals Lives Better, Makes Life Better” has never been more significant than it is today. Read the full press release, https://bit.ly/48A4R18. #WeAreElanco
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President & CEO at Elanco | Passionate about people, growth & leadership at all levels | Relentless in advancing animal care | Committed to food security for all | Future with climate neutral farms | Family
Elanco’s second quarter results – exceeding expectations and delivering sequential improvement in underlying performance – reflect our global team’s deep commitment to our customers and the impact that reaching the world’s animals can have. Our Elanco team has been laser-focused on delivering value for customers and shareholders, and it showed in our results, exceeding the top end of the range for all targets and raising guidance for the year. We delivered a strong second quarter with continued sequential improvement in our underlying business, meaningful progress in our late-stage pipeline, and the successful completion of our ERP integration. Industry-leading, differentiated innovation will drive our long-term sustained growth and value. We are delivering new solutions to some of our customers’ greatest challenges from diabetes in cats and a treatment for deadly parvovirus in puppies to environmental solutions for livestock. And are making exciting progress on our next wave of differentiated innovation. Thank you to our customers – veterinarians, farmers, producers – what you do has never mattered more. Importantly, Elanco has reached an inflection point with our standup and integration now behind us. We’ve built an optimized infrastructure to deliver our next era of innovation, growth and value creation for customers and shareholders. It’s clear. Making life better for animals, makes life better. #WeAreElanco Read the full press release, https://bit.ly/3QudyER.
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Delivering profitable Growth, Innovating process improvement, Acting as owner in communication / Senior Director Finance / CFO LATAM, Canada & Aqua
Sustainable growth is focused on the intense ability to plan and follow a strategic and effective agenda. We continue on the proposed path to deliver another strong year of expressive results
President & CEO at Elanco | Passionate about people, growth & leadership at all levels | Relentless in advancing animal care | Committed to food security for all | Future with climate neutral farms | Family
Elanco’s second quarter results – exceeding expectations and delivering sequential improvement in underlying performance – reflect our global team’s deep commitment to our customers and the impact that reaching the world’s animals can have. Our Elanco team has been laser-focused on delivering value for customers and shareholders, and it showed in our results, exceeding the top end of the range for all targets and raising guidance for the year. We delivered a strong second quarter with continued sequential improvement in our underlying business, meaningful progress in our late-stage pipeline, and the successful completion of our ERP integration. Industry-leading, differentiated innovation will drive our long-term sustained growth and value. We are delivering new solutions to some of our customers’ greatest challenges from diabetes in cats and a treatment for deadly parvovirus in puppies to environmental solutions for livestock. And are making exciting progress on our next wave of differentiated innovation. Thank you to our customers – veterinarians, farmers, producers – what you do has never mattered more. Importantly, Elanco has reached an inflection point with our standup and integration now behind us. We’ve built an optimized infrastructure to deliver our next era of innovation, growth and value creation for customers and shareholders. It’s clear. Making life better for animals, makes life better. #WeAreElanco Read the full press release, https://bit.ly/3QudyER.
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Final Year Masters Business Administration Student | Analyst at Crowwd | Interested in Capital Markets
Merck Expands Aquatic Portfolio with $1.3 Billion Acquisition of Elanco's Aqua Business Pharmaceutical giant Merck has announced its acquisition of Elanco Animal Health's aqua business for $1.3 billion in cash. The deal, set to be finalised by mid-year, positions Merck as a dominant force in the aquatic pet health products market. Elanco's shares experienced an uptick of 7%, reaching $15.8 in premarket trading following the announcement. This move aligns with Merck's previous endeavours in animal health, having acquired fish health product maker Scan Aqua and fish conservation monitoring equipment manufacturers Vaki and Antelliq Corp in 2019. The acquisition provides Merck with access to products like Clynav, a DNA-based vaccine safeguarding Atlantic salmon against pancreas disease, and Imvixa, an anti-parasitic treatment for sea lice. Beyond innovative products, Merck stands to gain from Elanco's manufacturing facilities in Canada and Vietnam, along with a research facility in Chile, further strengthening Merck's position in the rapidly growing aquaculture sector. For Elanco, the transaction will significantly reduce its debt by $1.05 billion to $1.1 billion, constituting a 20% reduction. The company aims to redirect these funds towards investments in its pet healthcare products, which are deemed to yield higher returns per dollar spent. Elanco's CEO, Jeff Simmons, emphasises the company's focus on pet health and livestock sustainability, with six late-stage products in the pipeline set to launch in the US market by 2025, pending approval. The aqua business, contributing $42 million in total sales during the third quarter, accounts for approximately 4% of Elanco's overall revenue. Will be interesting to see how this acquisition from Merck develops going forward. See on Crowwd here: https://lnkd.in/esbkT2cz Sources: https://lnkd.in/e_uRH5aM #healthcare #equities #markets #news
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#VeterinaryChemistryAnalyzer Industry is projected to witness a CAGR of 8.4% during the period 2023-2032. This growth can be attributed to the growing demand for animal-derived foods. Eurolyser Diagnostica, Randox. #VeterinaryChemistry
Veterinary Chemistry Analyzer Market to hit USD 3.1 billion by 2032, says Global Market Insights Inc.
globenewswire.com
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A recent #JournalofDairyScience study (https://lnkd.in/gVE9RrnH) of organic dairy farms in the United States led by researchers from the University of Minnesota College of Veterinary Medicine sheds light on the dynamics of intramammary infections (IMI) in young dairy cows. Organic dairy production is on the rise, driven by consumer demand for organic products—and raising healthy cows is a cornerstone of meeting this rising demand. The new study offers insights into management practices that can benefit organic and conventional farmers alike. https://lnkd.in/g4xPUYR6
Study details IMI dynamics in organically raised first-lactation cows
feedstuffs.com
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