Elanco CEO on Pet Humanization, Innovation, and Animal Health Sector Growth

Driving Forces in Animal Health

• 💡 The humanization of pets is a primary driver for the strong demand in the animal health sector, with trends being stronger than ever.
• 🚀 Innovation in both the pet and livestock markets is accelerating growth, contributing to Elanco's strong performance.
• 📈 The convergence of pet trends and high-protein diets is making the animal health sector a resilient and compelling investment.

Innovation Pipeline and Key Growth Areas

• 🎯 Elanco is focusing on innovation that makes a tangible difference, particularly in parasiticides and dermatology.
• 💊 The Credellio Quattro product, featuring four active ingredients for broad-spectrum parasite protection, has captured significant market share in a $6 billion market.
• 🐾 In the $2 billion dermatology space, where itching is the top reason for vet visits, Elanco has a product showing strength and efficacy, with international launches underway.
• 🐄 Innovation is also being applied to the livestock sector, including beef and dairy cattle, to improve productivity and farmer economics.

Elanco's Business Resilience and Durability

• 📊 Elanco has demonstrated accelerated growth and a strong outlook for the rest of the decade in a durable industry.
• 🌍 As an independent company, Elanco has managed the impact of tariffs and trade policies, which are considered manageable and within guidance.
• 💰 The animal health industry is characterized as a cash business with value-based pricing, making it less dependent on government policy and more attractive to investors.
• 🔑 Elanco's strategic distribution and manufacturing locations contribute to its resilience against external policy impacts.