ELANCO ANIMAL HEALTH INCORPORATED

(ELAN)
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Delayed Nyse  -  04:00 2022-08-12 pm EDT
20.08 USD   +2.61%
08/08ELANCO ANIMAL HEALTH INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)
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08/08TRANSCRIPT : Elanco Animal Health Incorporated, Q2 2022 Earnings Call, Aug 08, 2022
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08/08ELANCO ANIMAL HEALTH INCORPORATED : Reports Second Quarter 2022 Results - Form 8-K
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Starboard Takes Elanco Stake, Nominates Three to Its Board -- Update

03/03/2021 | 02:08pm EDT

By Cara Lombardo

Activist investor Starboard Value LP has taken a stake in Elanco Animal Health Inc. and nominated three directors to the company's board, according to people familiar with the matter.

Elanco, which makes vaccines and treatments for pets and livestock, has a market value of about $15 billion. The exact size of Starboard's stake -- and specifically what the fund intends to advocate at Elanco -- couldn't be learned, though it tends to make sizable investments in companies it targets.

Starboard would be the second activist to apply pressure to Elanco recently: The company was targeted last year by Sachem Head Capital Management, which owns a roughly 5.9% stake. The hedge fund's founder, Scott Ferguson, now sits on Elanco's 13-person board, having gained the seat as part of a December settlement that also added another director and expanded the mandate of a board committee to include improving margins.

Greenfield, Ind.-based Elanco was a division of Eli Lilly & Co. until the drugmaker spun it out in an initial public offering in 2018. Less than a year later, Elanco struck a deal to buy Bayer AG's animal health business for over $7 billion. The company has said the deal, which closed last year, will double its pet business and strengthen its presence in emerging markets and in the cattle business.

The company's shares have recovered since dropping along with the rest of the market in the early days of the coronavirus pandemic, but are trading below where they debuted in September 2018.

In January, Elanco said it would eliminate 350 positions and close a handful of research-and-development sites to reap cost savings following the merger. When reporting fourth-quarter earnings last month, the company increased its 2021 guidance to revenue of between $4.55 billion and $4.63 billion and adjusted per-share earnings of 90 cents to $1.

The deadline to nominate directors at Elanco was Feb. 20. If Starboard and Elanco fail to reach a settlement agreement, Elanco shareholders would vote on the potential directors at the company's annual meeting this spring.

Activist investors laid low in 2020 as Covid-19 upended business as usual and brought more volatility to the markets. But they appear to be back in full force this proxy season, striking settlements or pursuing proxy fights at companies including Bausch Health Cos., Exxon Mobil Corp. and Kohl's Corp. Starboard, typically one of the busiest activists, late last year nominated directors at agricultural giant Corteva Inc.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

03-03-21 1408ET

Stocks mentioned in the article
ChangeLast1st jan.
BAUSCH HEALTH COMPANIES INC. -3.06% 6.01 Delayed Quote.-78.23%
BAYER AG -0.90% 53.61 Delayed Quote.15.21%
ELANCO ANIMAL HEALTH INCORPORATED 2.61% 20.08 Delayed Quote.-29.25%
ELI LILLY AND COMPANY 2.29% 308.08 Delayed Quote.11.53%
EXXON MOBIL CORPORATION 0.87% 94 Delayed Quote.53.62%
FEEDER CATTLE?FUTURES (GF) - CMG (ELECTRONIC)/C1 -0.33% 179.35 End-of-day quote.7.64%
LIVE CATTLE (LE) - CMG (ELECTRONIC)/C1 -0.21% 140.3 End-of-day quote.0.38%
All news about ELANCO ANIMAL HEALTH INCORPORATED
08/08ELANCO ANIMAL HEALTH INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION A..
AQ
08/08TRANSCRIPT : Elanco Animal Health Incorporated, Q2 2022 Earnings Call, Aug 08, 2022
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08/08ELANCO ANIMAL HEALTH INCORPORATED : Reports Second Quarter 2022 Results - Form 8-K
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08/08Elanco Animal Health Incorporated Provides Earnings Guidance for Third Quarter of 2022
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08/08Elanco Animal Health Incorporated Revised Earnings Guidance for Full Year 2022
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08/08Elanco Animal Health's Q2 Adjusted Earnings Rise, Revenue Falls; Trims Guidance
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08/08Earnings Flash (ELAN) ELANCO ANIMAL HEALTH INCORPORATED Reports Q2 Revenue $1.18B
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08/08Earnings Flash (ELAN) ELANCO ANIMAL HEALTH INCORPORATED Posts Q2 EPS $0.36
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08/08Elanco Animal Health Reports Second Quarter 2022 Results
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08/08Elanco Animal Health Incorporated Reports Earnings Results for the Second Quarter and S..
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Financials (USD)
Sales 2022 4 579 M - -
Net income 2022 94,6 M - -
Net Debt 2022 5 187 M - -
P/E ratio 2022 -335x
Yield 2022 -
Capitalization 9 520 M 9 520 M -
EV / Sales 2022 3,21x
EV / Sales 2023 3,01x
Nbr of Employees 9 000
Free-Float 95,9%
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Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 20,08 $
Average target price 25,78 $
Spread / Average Target 28,4%
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Managers and Directors
Jeffrey N. Simmons President, Chief Executive Officer & Director
Todd S. Young Chief Financial Officer & Executive Vice President
R. David Hoover Independent Chairman
Christopher Keeley Chief Information Officer & Senior Vice President
David S. Kinard EVP-Human Resources & Corporate Communications
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