U.S. Markets closed
  • S&P 500

    4,395.64
    +41.45 (+0.95%)
     
  • Dow 30

    34,258.32
    +338.48 (+1.00%)
     
  • Nasdaq

    14,896.85
    +150.45 (+1.02%)
     
  • Russell 2000

    2,218.56
    +32.38 (+1.48%)
     
  • Crude Oil

    70.51
    -0.05 (-0.07%)
     
  • Gold

    1,768.40
    -9.80 (-0.55%)
     
  • Silver

    23.03
    +0.46 (+2.05%)
     
  • EUR/USD

    1.1696
    -0.0034 (-0.2924%)
     
  • 10-Yr Bond

    1.3360
    +0.0120 (+0.91%)
     
  • Vix

    20.87
    -3.49 (-14.33%)
     
  • GBP/USD

    1.3619
    -0.0045 (-0.3282%)
     
  • USD/JPY

    109.7800
    +0.5600 (+0.5127%)
     
  • BTC-USD

    44,655.93
    +1,275.11 (+2.94%)
     
  • CMC Crypto 200

    1,089.55
    +49.07 (+4.72%)
     
  • FTSE 100

    7,083.37
    +102.39 (+1.47%)
     
  • Nikkei 225

    29,639.40
    -200.31 (-0.67%)
     

Elanco To Exit Three Manufacturing Sites To Streamline Footprint

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Following the acquisition of Bayer Animal Health, Elanco Animal Health Incorporated (NYSE: ELAN) has agreed to sell its sites in Shawnee, Kansas, and Speke, the U.K., to TriRx Pharmaceuticals, a Connecticut-based contract manufacturer with approximately 600 employees.

  • The financial terms of the deal were not disclosed.

  • A long-term supply pact has been signed for the facilities to continue to manufacture existing Elanco products.

  • The sale of the Shawnee and Speke facilities will complete by 1H of 2021 and early 2022, respectively.

  • The steps will accelerate the company's gross margin efforts, reduce annual capital expenditures by $25 million to $30 million, and improve working capital by approximately $75 million to $85 million by reducing inventory.

  • A related impairment charge of $245 million to $305 million will be incurred in Q2 2021, resulting in reducing Q2 and fiscal year 2021 GAAP EPS guidance by $0.43 to $0.54, with no change in adjusted EPS guidance.

  • The Shawnee facility closure is expected to reduce full-year 2021 revenue by $10 million to $20 million.

  • Additionally, Elanco will cease operations at the legacy Bayer Animal Health manufacturing site in Belford Roxo, Brazil.

  • The operations will be transferred to ELAN's site in Santa Clara, Mexico, and a contract manufacturer in Brazil.

  • The site will be decommissioned in early 2022.

  • Price Action: ELAN shares are up 1.80% at $33.96 during the market session on the last check Wednesday.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.