Ricks: ‘Good Time’ to Weigh Elanco Options
The chief executive officer of Eli Lilly and Co. (NYSE: LLY) says growth for its animal health division Elanco, including two recent major acquisitions, makes now a good time to evaluate the unit’s future. During a conference call this morning with investors, David Ricks said the company expects to complete its analysis by mid-2018. The company today announced it was weighing options for Elanco, including a potential sale or taking it public.
Ricks says "over the last many years, we’ve grown this business rather substantially," adding it participates in all the relevant segments of animal health. The unit has been involved in two major acquisitions in recent years. 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. IN 2015, Lilly announced it had completed the $5.4 billion acquisition of Novartis Animal Health.
Lilly this morning reported third quarter net income of $555.6 million, compared to $778 million during the same quarter last year. In this morning’s earnings report, the company also reported a 9 percent revenue increase, beating analyst expectations.
Ricks says Lilly has been considering Elanco’s long-term future for years.