Eli Lilly to spin off Elanco as separate business

Eli Lilly and Company has announced it intends to file a registration statement for a public offering of a minority ownership stake of less than 20% in Elanco Animal Health as a separate company. The remaining ownership will be divested through a tax-efficient transaction.

Lilly’s chairman and chief executive, David Ricks, said: “Based on our strategic review, we concluded after-tax value for Lilly shareholders would be maximised by pursuing an initial public offering of Elanco. We believe this will allow Elanco to efficiently deploy its resources to those growth opportunities that best serve its customers. In addition, this will provide Lilly even greater focus on the human pharmaceutical business to pursue our purpose of creating life-changing medicines for patients.”
Jeffrey Simmons, president of Elanco Animal Health, said: “With more than six decades of expertise in animal health, we are prepared to take this step to become an independent company. With a sole focus on animal health, we will help our customers address the greatest challenges of keeping animals healthy, and together advance a vision of food and companionship enriching life.”