Elanco Animal Health (ELAN) Goldman Sachs 45th Annual Global Healthcare Conference summary

Strategic priorities and business performance

• Focused on growth, innovation, and cash generation, with consistent mid-single digit growth for three quarters and a stabilizing core business.

• Innovation is targeted to deliver $600M-$700M in revenue by end of 2025, with a $100M innovation quarter in Q1 and raised guidance.

• Cash generation is strong, with over $300M expected this year for debt reduction and $1.1B from the Aqua business sale, improving leverage.

• Raised overall growth guidance to 2%-3% for the year, with innovation as the main value driver and a strengthening balance sheet.

Innovation and product pipeline

• Seven major innovation assets are driving growth, including Parvo, Experior, AdTab, Bovaer, Zenrelia, Quattro, and IL-31.

• Regulatory processes are ongoing, with confidence in label optimization and product differentiation for upcoming launches.

• Launches are expected to follow traditional adoption curves, with significant investment and experienced teams to ensure success.

• Zenrelia targets a $2B global derm market, with growth driven by increased awareness, more treatment options, and international expansion.

• Bovaer, a methane reduction product for dairy cattle, has high industry interest and is expected to create a $1B-$2B global market.

Commercialization and market approach

• Expanded sales force and increased share of voice in preparation for new launches, focusing on value-based selling.

• Four-dimensional portfolio (vaccines, therapeutics, parasiticides, derm) positions the company as a comprehensive partner for veterinarians.

• Market research and segmentation inform tailored go-to-market strategies, with differentiated approaches for corporate and smaller clinics.

• Retail and omnichannel distribution are emphasized, with increased product availability and innovation in both vet and retail channels.