Owner Eli Lilly said this week that Elanco is undergoing a “strategic review” with several options on the table, such as selling the unit, spinning it off as a separate company or making a merger deal.
“Through acquisitions and organic growth, we’ve grown Elanco to a size and scale that now allows us to consider a variety of options to maximize value,” said David Ricks, Lilly chairman and chief executive officer.
Elanco’s third quarter sales increased by five per cent over last year, but sales for the year so far are down by one per cent.
Last month Elanco put its rBST business up for sale. It’s a hormone that boosts milk production; it’s not for sale in Canada.
Elanco recently acquired Novartis Animal Health and BI Vetmedica’s U.S. vaccines portfolio.
“We believe that the outcome of a strategic review may result in more value and further enable Elanco’s top-tier leadership in animal health,” says Elanco president Jeff Simmons.