Elanco: Bayer Deal Advances, Details 2020 Guidance
(Provided Photo/Elanco Animal Health)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowGreenfield-based Elanco Animal Health Inc. (NYSE: ELAN) has announced its initial financial guidance for 2020. The company says it expects revenue to range from $3.05 billion to $3.1 billion.
Elanco says this outlook does not include any expected revenues from the purchase of the Bayer animal health division, which continues to advance.
In August, the company entered into an agreement with Germany-based Bayer AG to acquire its animal health business in a deal valued at $7.6 billion.
If approved, it would double Elanco’s Companion Animal business and create the second-largest animal health company by revenue.
“We built our 2020 plan to balance the strength of industry fundamentals with the external factors facing our business,” said Todd Young, chief financial officer at Elanco. “This year will build the foundation that positions Elanco for the next era of growth as a leading animal health company.”
The company says it received unconditional antitrust clearance from a regulatory agency in China, but reviews continue in other countries.
Closing out the year, the company says its audit of FY 2019 will likely show results toward the lower end of previous guidance ranges.
Elanco says while it reported overall revenue growth, expanded margins and a growing portfolio of products during the year, the company also felt strong environmental headwinds, including African Swine Fever and the Australian drought.
Those challenges cut revenue by nearly $100 million, according to Elanco.
“This is a resilient, diverse and durable business that grew in 2019 despite significant environmental pressures, including one of the most significant animal disease epidemics in decades,” said Simmons. “As we move into 2020 our focus continues to be on execution, balanced progress and building Elanco from strength to leadership.”
You can view the full updated 2019 guidance and newly released 2020 guidance by clicking here.