Latest news with #JeffSimmons
Associated Press
6 days ago
- Business
- Associated Press
Elanco CEO Jeff Simmons: Innovation and Sustainability Drive Long-Term Growth
Jeff Simmons, President and CEO of Elanco Animal Health, recently joined the Bloomberg Businessweek Daily to discuss the company's strategic framework and detail why he sees sustainable value creation continuing for years to come. 'I see this as one of the most resilient industries right now with some of the consumer trends that are out there,' Simmons shared. Simmons went on to emphasize the value of innovation as a driver of the growth at the company, including how its work in the cattle space is meeting the changing expectations of consumers. 'We've got a couple products here that are actually helping with productivity and low cattle numbers that are out there. That's why beef prices are a little higher, but also having an environmental impact. And CPG companies are signing up to say, hey, this is important to the next generation of protein consumers,' Simmons explained. This discussion comes on the heels of the company's recently-released 2024 Impact Report, which showcases Elanco's efforts to enhance animal care, not just improving the lives of animals but also the people who care for them. Listen to the full interview here. Learn more about Elanco's commitments to animal health and how making life better for animals makes life better. Visit 3BL Media to see more multimedia and stories from Elanco
Yahoo
11-06-2025
- Business
- Yahoo
ELAN Q1 Earnings Call: Innovation and Product Launches Drive Outlook Amid Macro Uncertainty
Animal health company Elanco (NYSE:ELAN) reported Q1 CY2025 results topping the market's revenue expectations , but sales were flat year on year at $1.19 billion. The company's full-year revenue guidance of $4.55 billion at the midpoint came in 1% above analysts' estimates. Its non-GAAP profit of $0.37 per share was 21.5% above analysts' consensus estimates. Is now the time to buy ELAN? Find out in our full research report (it's free). Revenue: $1.19 billion vs analyst estimates of $1.16 billion (flat year on year, 2.4% beat) Adjusted EBITDA: $276 million vs analyst estimates of $251.1 million (23.1% margin, 9.9% beat) The company lifted its revenue guidance for the full year to $4.55 billion at the midpoint from $4.48 billion, a 1.5% increase Management reiterated its full-year Adjusted EPS guidance of $0.83 at the midpoint EBITDA guidance for the full year is $850 million at the midpoint, below analyst estimates of $861.6 million Market Capitalization: $7.1 billion Elanco's first quarter results reflected steady progress in product innovation and portfolio diversification, with management emphasizing the contribution of its recently launched products. CEO Jeff Simmons highlighted that organic constant currency revenue growth was evenly split between price and volume, and credited the company's performance to the commercial success of new products such as Credelio Quattro and Zenrelia. Management described a rebound in U.S. retail trends and noted the resilience of its international pet health and farm animal segments, despite challenges like colder weather and a tough U.S. retail backdrop early in the quarter. CFO Todd Young added that disciplined manufacturing and operating cost management contributed to margin expansion, even as investments in product launches and R&D continued. Looking ahead, Elanco's management attributes its raised full-year revenue guidance to momentum from its innovation portfolio and a rebound in retail demand. CEO Jeff Simmons stated, 'We expect accelerating quarter-on-quarter growth with Q2 up 4% to 6%,' pointing to the ramp-up of new product launches. The company plans significant investment in marketing and distribution, particularly for its Big 6 innovations, to capture opportunities during the peak parasiticide season. While Elanco expects further revenue gains from these launches and ongoing expansion in its farm animal business, management flagged potential headwinds from tariffs and macroeconomic volatility. CFO Todd Young said the company is maintaining a prudent approach, balancing currency tailwinds and innovation-driven growth with uncertainty in the external environment. Management attributed the quarter's performance to strong uptake of new products, operational discipline, and a diversified portfolio that helped offset temporary challenges in U.S. retail channels. New products boost sales: The launch of Credelio Quattro and continued uptake of Zenrelia contributed significantly to growth, with Credelio Quattro quickly capturing a 10% share of broad-spectrum sales in U.S. veterinary clinics and Zenrelia reaching approximately 11,000 U.S. clinics, about 35% of the market. Innovation pipeline momentum: Elanco increased its full-year innovation revenue expectations, citing the strong performance of its Big 6 products. Management indicated that this basket of products, which includes breakthroughs in parasiticides and dermatology, is expected to drive company growth for the next decade. Farm animal business strength: Experior, a key product for cattle, maintained robust adoption following new regulatory clearances, while Bovaer showed continued demand in dairy markets despite delayed government incentives. These products are supporting both revenue growth and portfolio resilience. Operational and supply chain adaptations: Management highlighted proactive measures to mitigate tariff impacts, including inventory management, selective pricing, and strategic sourcing. These steps, combined with favorable foreign exchange, have offset much of the expected tariff-related headwind for 2025. Manufacturing and cost control: Margin expansion was supported by better-than-expected manufacturing performance, with management emphasizing ongoing focus on productivity, cost discipline, and targeted investments in facilities expansion and product launches. Elanco's outlook is anchored by ongoing investments in product launches, a focus on innovation, and careful management of tariff and macroeconomic risks. Peak season investments: The company will substantially increase operating expenses in Q2 to support the launch and marketing of key products, especially during the Northern Hemisphere's peak parasiticide season. Management anticipates that these investments will drive accelerating revenue in the second half of the year. Tariff and currency dynamics: While new U.S. and China tariffs present a risk, management believes most of the estimated impact for 2025 is balanced by foreign exchange benefits and intervention strategies such as supply chain optimization and value-based price increases. Innovation and portfolio expansion: Elanco's growth outlook depends on the success of its Big 6 innovation launches, further label expansions (especially for Zenrelia), and geographic expansion, particularly in international pet health and farm animal markets. The company also expects new regulatory approvals and increased clinic penetration for these products. In upcoming quarters, the StockStory team will be monitoring (1) the ramp-up and sustained demand for Credelio Quattro and Zenrelia, (2) execution and market share gains in the farm animal segment, especially with Experior and Bovaer, and (3) the company's ability to navigate tariff headwinds without eroding margins. Progress on regulatory approvals and label expansions, as well as further deleveraging, will also be key markers of strategic execution. Elanco currently trades at a forward P/E ratio of 17.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
How Elanco Plans on Winning in the Pet Wellness Boom
The animal health care company Elanco is reaffirming its second quarter and full year guidance. The company is also announcing a new CFO as the company looks to accelerate growth. Jeff Simmons, Elanco's CEO joined the C-Suite on Bloomberg's Open Interest to talk about the booming pet care market Sign in to access your portfolio
Bloomberg
28-05-2025
- Business
- Bloomberg
How Elanco Plans on Winning in the Pet Wellness Boom
The animal health care company Elanco is reaffirming its second quarter and full year guidance. The company is also announcing a new CFO as the company looks to accelerate growth. Jeff Simmons, Elanco's CEO joined the C-Suite on Bloomberg's Open Interest to talk about the booming pet care market (Source: Bloomberg)
Yahoo
05-05-2025
- Business
- Yahoo
Elanco Sells Royalty and Milestone Rights for Lotilaner in Human Health to Blackstone; Accelerates Debt Paydown
GREENFIELD, Ind., May 5, 2025 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced the sale of certain future tiered royalties and commercial milestones associated with XDEMVY® (lotilaner ophthalmic solution) 0.25%, for the human health application of lotilaner, to funds affiliated with Blackstone Life Sciences and Blackstone Credit & Insurance for $295 million in cash. Monetization of this non-core asset will be used to accelerate debt reduction, positioning Elanco to achieve an expected net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025. Elanco will repay portions of its outstanding term loans on a pro-rata basis, which is expected to reduce interest expense by approximately $10 million, offset by the sale of approximately $10 million of royalties based on Elanco's initial 2025 guidance. In 2019, Elanco exclusively licensed lotilaner to Tarsus Pharmaceuticals, Inc. (NASDAQ: TARS) for exploration as a solution to several unmet human health needs. In 2023, XDEMVY became the first lotilaner-based product approved for human use and the only FDA-approved medicine for treatment of Demodex blepharitis (DB), a common eyelid disease in humans caused by Demodex mites. "Elanco's team of scientific experts is focused on identifying and developing molecules to generate high-impact innovation, not just in our own portfolio, but in adjacent industries to create broader value," said Jeff Simmons, Elanco President and CEO. "As we continue to focus on launching our recent innovation and accelerating our core business sales growth in 2025, this transaction delivers incremental cash that advances our deleveraging goals making high 3x net leverage a real possibility by the end of 2025. We appreciate Blackstone's collaborative investment to further Elanco's goals and their recognition of the positive potential impact of XDEMVY on millions of DB patients in the U.S." "Elanco's innovation served as the basis for XDEMVY's strong efficacy and safety profile, and Tarsus' executional strength has led to its rapid adoption and commercial success. We are pleased to partner with both leading pharmaceutical companies and back this first-in-class treatment that addresses a pervasive and damaging eyelid disease," said Craig Shepherd and Kiran Reddy, MD, Senior Managing Directors, Blackstone Life Sciences. The agreement applies to certain tiered royalties associated with the U.S. net sales of XDEMVY from April 2025 through August 2033 and certain commercial milestones. Elanco retains the rights to all royalty payments on net sales outside the U.S. as well as any future human applications of lotilaner beyond ophthalmic solutions. Morgan Stanley & Co. LLC acted as the sole structuring agent. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning the expected financial impacts of the royalty sale on our financial results, plans for using the cash we receive in the sale, and expected financial results for 2025. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important risk factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including our ability to recognize the expected financial and cash generation benefits of the transaction and additional factors that could cause actual results to differ materially from forward-looking statements described in the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. ABOUT ELANCOElanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose™ sustainability pillars – all to advance the health of animals, people, the planet and our enterprise. Learn more at About Blackstone Life SciencesBlackstone Life Sciences (BXLS) is an industry-leading private investment platform with capabilities to invest across the life cycle of companies and products within the key life science sectors. By combining scale investments and hands-on operational leadership, BXLS helps bring to market promising new medicines and medical technologies that improve patients' lives and currently has $12 billion in assets under management. About Blackstone Credit & Insurance Blackstone Credit & Insurance ("BXCI") is one of the world's leading credit investors. Our investments span the credit markets, including private investment grade, asset-based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit. Investor Contact: Tiffany Kanaga (765) 740-0314 Contact: Colleen Dekker (317) 989-7011 View original content to download multimedia: SOURCE Elanco Animal Health Sign in to access your portfolio
