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May 9, 2024 Source: Elanco news release GREENFIELD, Ind - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the first quarter of 2024, provided guidance for the second quarter of 2024, and updated guidance for the full year 2024. "Elanco's strong business momentum continued in the first quarter, reinforced by the diversity of our portfolio and balanced geographic presence," said Jeff Simmons, Elanco President and CEO. "We delivered estimated revenue growth of 3% to 5% in the first quarter, excluding the impact of the ERP blackout from last year, and exceeded the top end of our guidance range for revenue, adjusted EBITDA and adjusted EPS in the quarter. "These results follow the 5% revenue growth we delivered in the last two quarters of 2023. We are increasing our new product sales expectations, led by Experior and AdTab, and our innovation is enhancing the durability of our base portfolio with customers, allowing us to raise our full year constant currency revenue growth range to 2% to 3%." "Additionally, we improved operating cash flow by nearly $150 million year over year in the first quarter as a result of our disciplined focus on improving net working capital and the benefit of completing our ERP system integration." Simmons continued, "We are encouraged by the strong progress of our late-stage pipeline, which has advanced significantly over the last several months. Based on our dialogue with the FDA and the status of packages submitted, we have increased certainty in the expected approval timing for Bovaer, Zenrelia and Credelio Quattro. We continue to expect to bring differentiated products to the market, with revenue contribution expected from all three new products in the second half of 2024." Innovation Highlights • Innovation revenue was $100 million in the first quarter and the company is updating its expectations for the full year to $375 to $410 million from this group of products. • Bovaer, a first-in-class methane reducing feed ingredient for cattle, is in the final stage of review with the U.S. Food and Drug Administration (FDA), with completion expected before the end of May. • For Zenrelia, a JAK Inhibitor targeting control of pruritus and atopic dermatitis in dogs, the company believes the FDA has all data necessary to complete its review. All technical sections, including the label, are expected to be approved before the end of June. Full approval is expected in the third quarter after an expected 60-day administrative review period. Additionally, Zenrelia has been submitted in nine additional markets, including the EU, UK, Australia, Canada and Japan, with international approvals expected to begin in late 2024. • For Credelio Quattro, a broad spectrum oral parasiticide covering fleas, ticks and internal parasites, the company believes the FDA has all data necessary to complete its review. All technical sections, including the label, are expected to be approved before the end of June. Full approval is expected in the third quarter after an expected 60-day administrative review period. • For Experior, a medicated feed additive indicated to reduce ammonia gas emissions from cattle, the company submitted combination clearance requests to the FDA for Experior (and other Elanco feed additives) with MGA (melengestrol acetate). Upon approval the combination clearance would open up an additional addressable market with feedlot heifers, which currently comprise nearly 40% of feedlot cattle in the U.S. This clearance, along with continued adoption in the U.S. and Canada gives the company increased confidence that the product will approach blockbuster status (greater than $100 million of annual sales) in 2024. • Received FDA approval for Pradalex, a prescription-only single-injection antimicrobial for the treatment of certain respiratory diseases in cattle and swine. This is the first new molecule and injectable antibiotic treatment to be approved in more than a decade. This product underscores Elanco's commitment to farm animal innovation and further differentiates our strong livestock portfolio in the U.S. Financial Results In April 2023, the company completed the successful integration of the legacy Bayer Animal Health business into Elanco's ERP system and shared service center network. As a result of the integration, the company communicated commercial shipping blackout periods impacting April 2023 (the "ERP Blackout"). As reported last year, the company believes the first quarter of 2023 benefited from approximately $90 to $110 million of customer purchases of legacy Bayer Animal Health products that were shifted from the second quarter of 2023. This estimated shift meaningfully impacted the reported growth rates for the first quarter of 2024. To read the entire report click here. Tweet |
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