Lilly Mulls Elanco Future, Reports Profit
Indianapolis-based Eli Lilly and Co. (NYSE: LLY) says it is "reviewing strategic alternatives" for Elanco, its animal health division, with options ranging from an initial public offering to a sale. The company says it will update the process no later than the middle of 2018. Lilly today reported third quarter net income of $555.6 million, compared to $778 million during the same quarter last year. The company says revenue increased 9 percent over the third quarter last year.
Lilly reported revenue of $5.66 billion, topping expectations and last year’s third quarter revenue of $5.19 billion. The company says the increase was fueled in large part by growth in new pharmaceutical products. New product revenue, including Trulicity, Taltz, Jardiance and others, represented nearly 22 percent of total revenue.
Chief Executive Officer David Ricks says the company’s pipeline "continues to deliver." Lilly has launched nine medicines since 2014, with plans to launch 11 more by 2023.
On Elanco, Ricks says the division has been an "important growth driver and source of revenue diversification for Lilly." He says the unit has grown to a point that allows Lilly to consider several options to "maximize future value." Last year, Elanco announced an $885 million acquisition deal with Boehringer Ingelheim Vetmedica Inc., involving dozens of cat, dog and rabies vaccines, as well as an Iowa manufacturing facility.
Yesterday, Lilly announced plans to invest $72 million in insulin manufacturing operations at one of its Indianapolis facilities. That project is part of the $850 million in U.S. investments that Lilly announced in March.