Lilly to Make Elanco Separate Business in IPO

Posted: Updated:
INDIANAPOLIS -

Indianapolis-based Eli Lilly and Co. (NYSE: LLY) says it plans to spin off its Greenfield-based Elanco Animal Health business as a separate company. The decision comes after completing a review of Elanco that began a year ago. Lilly says it plans to begin the process for an initial public offering for a less than 20 percent minority stake in Elanco in the coming weeks. It expects to complete the IPO by year's end. The announcement was delivered along with Lilly's most recent earnings report, which shows a second quarter loss of $259.9 million, compared to a net income of more than $1 billion during the same quarter last year.

Details of the Elanco offering, including the price range and number of shares, will be announced at another time. Lilly Chief Executive Officer Dave Ricks calls the decision strategic and says it "will maximize the after-tax value for Lilly shareholders and provide Lilly with even greater focus on our human pharmaceutical business."

The quarterly loss, Lilly says, can be attributed to costs including acquired in-process research and development charges such as the $1.6 billion purchase of ARMO Biosciences Inc. in California and the deal for AurKa Pharma Inc. in Canada, which involves an upfront payment of $110 million. Ricks added "Lilly delivered strong results once more in the second quarter in terms of operational performance, pipeline advancements, and strategic objectives. The increase in our worldwide revenue was fueled by volume growth of our new medicines, while we also maintained a keen focus on containing costs and improving productivity. Our pipeline continued to demonstrate our commitment to scientific innovation, highlighted by forward progress for key molecules, several positive late-stage data readouts and the addition of promising new assets through business development."

You can connect to more about the results and plans for Elanco by clicking here.

  • Perspectives

    • Filing the Gap Between Background Checks

      Because I run a background screening company, you might be surprised when I confess that there’s a huge inherent flaw in background screening. The flaw isn’t in our services or our people, both of which are remarkably thorough. The problem is that a background screening captures a moment in time. Whether you screen someone as part of the pre-employment process or check on their background a decade after you’ve hired them, even the most effective background screening...
    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Shelly Timmons

      IU Health Names New Leader of Neurosurgery

      The Indiana University School of Medicine and IU Health Physicians have named Shelly Timmons to lead the department of neurosurgery. She previously served at Penn State Health Milton S. Hershey Medical Center as vice chair for administration in the department of neurosurgery and director of neurotrauma.  

    • (Photo Courtesy: Roche Diagnostics)

      Roche VP on List of Influential Women Executives

      An executive with Roche Diagnostics has joined an exclusive list of prominent and influential women, including Oprah Winfrey and Serena Williams.  Cindy Carlisle, Vice President of Human Resources at Roche Indy, was named to Savoy Magazine’s 2019 Most Influential Women in Corporate America. 

    • New Mixed-Use Development Planned for Fishers

      A new mixed-use development is coming to Fishers. Thompson Thrift Retail Group has announced the development of The Station, an office building that is part of an overall project that includes a 150-room hotel, a future retail pad along 116th Street and nearly 40 3-story townhomes.

    • Muncie Official, Business Owner Indicted for Fraud

      The district administrator for the Muncie Sanitary District and a Muncie business owner have been indicted on multiple charges, including wire fraud. U.S. Attorney Josh Minkler's office says Debra Nicole Grigsby and Tony Franklin were allegedly involved in a kickback scheme involving contracts for infrastructure projects.

    • Baby Boomers Are Impacting the Building Industry

      There are currently 78 million baby boomers in the U.S., making up 25% of the population and controlling 67% ($28 trillion) of the country’s wealth, according to the Living In Place Institute. AARP says 90% of people surveyed want to remain as long as possible in their homes. The majority of those 65 and older remodel their home to make it safer and accessible. In fact, 45% of all remodeling work is being done for people over the age of 65. With this amount of data supporting...