Owner Eli Lilly said this week that Elanco is undergoing a “strategic
review” with several options on the table, such as selling the unit, spinning
it off as a separate company or making a merger deal.
“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 value,” said David
Ricks, Lilly chairman and chief executive officer.
Elanco’s
third quarter sales increased by five per cent over last year, but sales for
the year so far are down by one per cent.
Last
month Elanco put its rBST business up for sale. It’s a hormone that boosts milk
production; it’s not for sale in Canada.
Elanco
recently acquired Novartis Animal Health and BI Vetmedica’s U.S. vaccines
portfolio.
“We
believe that the outcome of a strategic review may result in more value and
further enable Elanco’s top-tier leadership in animal health,” says Elanco
president Jeff Simmons.
