The chief executive officer of Indianapolis-based Eli Lilly and Co. (NYSE: LLY) says plans to spin off Greenfield-based Elanco Animal Health as a separate company will create maximum value for Lilly shareholders. During a conference call today, Dave Ricks also said the planned initial public offering will allow both Lilly and Elanco to have greater focus on growth opportunities in their individual markets.
Lilly this morning announced plans to complete an IPO involving a less than 20 percent minority stake in Elanco by the end of the year. The decision came after completing a review of options involving the animal health company that began a year ago. The company says details involving price range and the number of shares will be released at a later time.
Lilly also announced its second quarter earnings today, reporting a loss of $259.9 million, compared to a net income of more than $1 billion during the same quarter last year. The company says the loss is due to charges from deals including the $1.6 billion purchase of ARMO Biosciences in California and a $110 million deal for AurKa Pharma Inc. in Canada.
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Ricks outlined the Elanco plans during a conference call this morning.