Process expected to be completed in second half of 2018
Eli Lilly and Co. has completed its strategic review of Elanco Animal Health, and will file a registration statement in the coming weeks with the U.S. Securities and Exchange Commission (SEC) for a potential initial public offering (IPO) of a minority ownership stake in Elanco as a separate company.
The offering is expected to represent an ownership stake of less than 20 percent. The number of shares to be offered and the price range for the offering have not yet been determined. The company expects to complete the IPO process during the second half of 2018.
For Lilly’s financial reporting, Lilly will continue to consolidate Elanco in its financial results. Lilly plans to divest its remaining ownership through a tax-efficient transaction. Execution of the IPO is dependent upon – and subject to – a number of factors and uncertainties, including business and market conditions.
“Based on our strategic review, we concluded that after-tax value for Lilly shareholders would be maximized by pursuing an initial public offering of Elanco,” said David A. Ricks, Lilly’s chairman and CEO. “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.”
“With more than six decades of expertise in animal health, we are prepared to take this step to become an independent company,” said Jeffrey Simmons, president of Elanco Animal Health. “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.”