Animal health firm Elanco surges 41 percent on debut
Summary
The U.S. drugmaker is expected to own about 82.3 percent of Elanco after the IPO, which was announced in July following a nine-month review of Lilly’s businesses which include diabetes and lung cancer drugs. The company sells medicines for both pets and livestock, and its Rumensin cattle feed additive accounts for 10 percent of its annual sales of about $3 billion. The pet medicine and vaccine market is largely dominated by Pfizer Inc’s (PFE.N) animal health unit Zoetis (ZTS.N), which raised $2.2 billion in a 2013 IPO. Zoetis’ shares have nearly tripled since then and many analysts expect Elanco will replicate that success in an industry projected to grow at 5 percent from 2017 to 2023, according to data firm Vetnosis. Elanco’s listing should deliver more value to Lilly shareholders and help the company as it sharpens focus on cancer treatments and looks beyond the recent failure in trials of its experimental Alzheimer’s drug.
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