2017 TOP STORIES: Lilly ponders Elanco future

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00
yir-october-elanco-450bp.jpg

Eli Lilly and Co. threw the future of its 64-year-old Elanco animal health business up in the air this fall, announcing it was reviewing whether to sell or spin off the division, which employs 6,500 people, including 800 at its Greenfield headquarters.

The announcement came Oct. 12, following a bumpy year for Elanco, which makes a vast array of vaccines, antibiotics, feed additives and other health products for livestock and pets. Elanco has seen sales edge down 1 percent in the first nine months of 2017, to $2.29 billion.

The downturn came just as Lilly was expecting a big boost in sales and profit from Elanco, following its $5.4 billion purchase of Novartis’ animal health division in 2015.

Instead, competitors including Zoetis and Bayer have taken market share. The Indianapolis-based drugmaker said the setbacks were due to stiffer competition, aggressive pricing by rivals and other factors.

Lilly launched the unit in 1953 to produce antibiotics for livestock and over the years expanded it to a wide variety of health products for companion animals and food animals.

The drugmaker said it will make a decision no later than mid-2018.

As a stand-alone company, Elanco would be the 12th-largest public company in Indiana, with 2016 revenue of $3.16 billion. That would put it ahead of Vectren Corp., Allison Transmission, Finish Line, Republic Airways and Duke Realty Corp.•

Click here for other 2017 year-in-review stories.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In