Elanco Animal Health (ELAN) Barclays 28th Annual Global Healthcare Conference summary

Business performance and growth

• Achieved 9% organic growth in Q4 2025, with U.S. pet health up 10% and U.S. farm up 17%.

• All four business quadrants, including international, showed strong performance; nine international countries grew, and all top five franchises expanded.

• Cash flow and debt reduction targets were met, with leverage at 3.6x and a goal to drop below 3x by 2027.

• Innovation basket exceeded expectations, contributing over $400 million year-over-year and projected to add $250 million in 2026.

• 2026 guidance includes mid-single-digit revenue growth, high single-digit EBITDA growth, and low double-digit EPS growth.

Innovation and product launches

• Launched 12 differentiated assets in the last three years, driving share gains in pain, vaccines, derm, and parasiticides.

• Quattro and Zenrelia are key growth drivers, with Quattro expanding into 2,600 new clinics and Zenrelia gaining rapid international market share.

• Combo products, especially for puppies, are fueling sustained market growth, with two-thirds of puppies starting on combo products.

• Zenrelia's U.S. growth accelerated after a positive label update, adding 3,500 clinics and achieving double-digit JAK market share.

• Pipeline expected to deliver 5-6 potential blockbusters by 2031, with a $2 billion sales peak anticipated.

Pricing, margins, and operational efficiency

• 2025 saw 2% price and 5% volume growth; pricing expected to accelerate in 2026, especially in vet clinics.

• Innovation basket carries higher margins than the corporate average, supporting margin expansion.

• Elanco Ascend program targets $200-$250 million in net EBITDA improvement by 2030, with 75% from gross margin and 25% from OpEx.

• $25 million in savings expected in 2026 from restructuring, with a $60 million run rate benefit in 2027.