Elanco Animal Health Begins Trading After Eli Lilly Split
Elanco Animal Health Inc (NYSE: ELAN), a global animal health company, began trading Monday as a fully standalone entity after completing a split from Eli Lilly And Co (NYSE: LLY).
What Happened
Elanco completed its initial public offering in September 2018, at which point Eli Lilly was a majority shareholder with an 80.2-percent stake. In early February, the parent company said it would divest the remaining stake. Shareholders could exchange all, some or none of their Eli Lilly stock. The ultimate exchange ratio was settled at 4.5121 shares of Elanco common stock for each share of Eli Lilly common stock.
On Monday, Elanco officially completed its separation from Eli Lilly and traded as a standalone entity for the first time.
Why It's Important
The exchange offer was 7.6 times oversubscribed, which reflects the company's confidence that it has the "right strategy and [is] successfully progressing the execution against it," Elanco President and CEO Jeff Simmons said in a press release.
Since the 2018 IPO, Elanco has reported two full quarters of operating results, and the company ended 2018 with 6-percent revenue growth to $3.1 billion.
What's Next
"With this milestone behind us, we look forward to a singular focus delivering innovative solutions and services for our customers —the farmers, veterinarians and pet owners that are central to our success," Simmons said.
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