Elanco Animal Health files for U.S. IPO
Quote:
https://seekingalpha.com/article/4196431-elanco-animal-health-files-u-s-ipo
I'll dabble into this one right quick since it is my industry.
Elanco is a very very strong company and at the forefront of animal health initiatives. It likely won't be a barn burner of a stock out the door, but their situation will be very similar to that of when Pfizer spun off their AHN division, Zoetis. They'll keep a lot of the same corporate structure to that of Eli Lilly and business will continue as usual.
Most of us are aware of Elanco products because of their business in companion animals, but their primary revenue is in the production species. Even though they still manufacturer antibiotics for animals, they're a big part of a stronger stewardship program for more responsible use of antibiotics in my industry via their program One Health. The director of the One Health initiative is the former director of DSM's AHN division and holds a PhD in Animal Science. I've done some work with him and he is extremely intelligent. Not sure of how many of you are aware, but livestock production is under huge pressure to reduce and ultimately eliminate antibiotic use in animals. Elanco will be one of the companies that comes out on top in this as they work with existing customers to ween them off antibiotics into their new therapeutic products. They have no qualms about investing more into solid R&D and acquiring strategic companies to gain an advantage. I will likely be throwing a bit at this during the IPO.