|Bid||25.80 x 900|
|Ask||27.95 x 1300|
|Day's Range||26.34 - 27.25|
|52 Week Range||26.20 - 37.61|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||65.98|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||34.44|
On Tuesday, Bayer (BAYRY) announced the sale of its animal-health division to American competitor Elanco (ELAN), for a net price of $7.6 billion. The deal is expected to close in mid-2020 after regulatory approval.
Elanco Animal Health stock toppled Tuesday after announcing its $7.6 billion takeover of Bayer's animal health segment. Elanco stock plunged almost 9% at the close of the stock market.
Bayer AG has agreed to sell its animal health business to Indiana-based Elanco Animal Health Inc. in a cash and stock deal worth $7.6 billion, the latest in the German company's divestitures as it faces mounting legal bills related to its Roundup herbicide.
Bayer AG, which has a large presence in the Kansas City area, will sell its animal health business to Elanco Animal Health Inc. in a transaction valued at $7.6 billion.
The deal is the latest in the fast-growing animal health market, which has recently seen Elanco floated by Eli Lilly and Co and rival U.S. drugmaker Pfizer also spinning off its veterinary medicine business. It also adds to the list of assets sold by Bayer, as the German company looks to slash debt from its $63 billion takeover of seed maker Monsanto last year and as it braces for a potential settlement of lawsuits over an alleged cancer-causing effect of weedkiller Roundup. The two companies said Bayer would receive $5.3 billion in cash and $2.3 billion worth of Elanco stock based on a price of $33.60 per share, the 30-day average price as of Aug. 6.
Elanco Animal Health Inc (NYSE: ELAN ) shares were trading lower Tuesday after the company announced it would acquire Bayer AG (OTC: BAYRY )'s animal health business for $5.32 billion in cash and $2.28 ...
(Bloomberg) -- Elanco Animal Health Inc. clinched the purchase of Bayer AG’s animal-health unit in a deal valued at $7.6 billion, creating one of the biggest stand-alone veterinary-medicine companies in the world.Elanco, which was spun out from drugmaker Eli Lilly & Co. last year, will finance the acquisition with a mix of cash and stock. German drug giant Bayer AG will receive $5.32 billion in cash and $2.3 billion in Elanco Animal Health common shares. The transaction is expected to close in mid-2020.“This will create the No. 2 animal-health company,” Elanco Chief Executive Officer Jeffrey Simmons said in an interview. “We see this as a nice complement. The pet owner, the veterinarian and the farmer win in this transaction.”Shares of Elanco have been under pressure since news of the potential transaction first surfaced earlier this summer. Bloomberg reported that the companies were close to a deal on Aug. 7.Elanco declined as much as 6.3% in New York trading on Tuesday. Bayer shares traded in Germany were down less than 0.1%.Elanco, based in Greenfield, Indiana, expects the deal to add to its adjusted earnings per share in the first full year after it closes. Buying the Bayer division will significantly bulk up its pet business at a time when the agricultural sector has turned more volatile. Last week, Elanco narrowed its sales guidance as a result of the outbreak of a deadly swine flu in Asia, which caused a decline in its farm unit.“With a larger, more diverse animal-health company, the percentage of the vulnerability will be less,” Simmons said, adding that he expects the current swine flu outbreak will eventually pass.Pfizer Inc.’s decision to spin out its animal-health business, Zoetis Inc., in 2013 has prodded other drugmakers to shed their veterinary units. The businesses are often stable, profitable operations whose fortunes are more tied to macroeconomic trends like rising global wealth and protein consumption, instead of risky bets on drug research.For Bayer, the sale adds to the resources it could draw from to pay potential costs for thousands of claims that Roundup, the weedkiller it gained in last year’s Monsanto acquisition, causes cancer. Bayer is in discussions on a possible settlement, but reaching a resolution could take months, people familiar with the matter have said.Simmons said Elanco won’t face any exposure to the Roundup suits.Bullish SectorZoetis, the former Pfizer unit, has seen its stock almost triple since it became an independent company. Elanco finished trading on Monday up 24% since its 2018 stock-market debut. Merck & Co. remains the only major pharmaceutical company that has held onto its animal-health unit, which generates about a 10th of its revenue.The deal would make Elanco the second-largest global animal-health business after Zoetis in terms of revenue, increasing its reach among farmers and pet owners. While it would be the new company’s biggest deal as an independent business, parent Eli Lilly bought Novartis AG’s animal-health unit in 2015 for $5.4 billion and combined the two firms’ assets.“Our top focus is now delivering our pipeline, bolt-ons, and other M&A is not needed,” Simmons said.Wall Street analysts have expressed reservations about the potential deal, saying that the Bayer business is unlikely to deliver a significant boost to Elanco’s growth.“Elanco is buying what I view as a flat-to-declining business that doesn’t innovate and has a high concentration risk,” Kevin Ellich, an analyst at Craig-Hallum Capital Group, said in an interview before the deal was announced. “The deal is dilutive to shareholders. At the end of the day, it’s just not that attractive. I don’t see how the stock goes up.”Simmons said he’s looking forward to setting the record straight with investors. “Now we’re able to respond to the marketplace: There’s been no change in our strategy, this is about growth and innovation,” he said.Elanco intends to work with regulators on potential antitrust issues, but sees the two portfolios as complementary.Goldman Sachs served as financial adviser to Elanco, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hengeler Mueller were its legal counsel. Elanco’s board of directors was provided a fairness opinion by Duff & Phelps. Bank of America Merrill Lynch and Credit Suisse acted as financial advisers to Bayer, while Sullivan & Cromwell, PwC Legal and Linklaters served as its legal advisers.(Updates stock-price information in fifth paragraph)To contact the reporter on this story: Riley Griffin in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy Annett, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Elanco Animal Health Inc said on Tuesday it would buy Bayer AG's animal health unit in a cash and stock deal valued at $7.6 billion, a move that would create the second largest animal health business and expand Elanco's reach in the pet e-commerce space. The animal health market has seen Pfizer Inc and Eli Lilly and Co, successfully floating their veterinary medicine units on the stock market as independent entities.
Elanco Animal Health said it's buying Bayer's animal health business for $7.6 billion. Elanco said it will pay $5.32 billion in cash and $2.28 billion in stock. Elanco said it intends to fund the cash consideration through a combination of new debt and equity. At close, Elanco expects its gross debt to adjusted EBITDA leverage ratio to be 5x.
Elanco Animal Health Incorporated (ELAN) today announced it has entered into an agreement with Bayer AG (BAYN) to acquire its animal health business in a transaction valued at US$7.6 billion. The transaction, which is subject to regulatory approval and other customary closing conditions, creates the second largest animal health leader while strengthening and accelerating the company’s proven Innovation, Portfolio and Productivity (IPP) strategy.
Elanco says the deal, which is subject to approval from regulators, would double the size of its companion animal business.
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Elanco Animal Health stock rose Tuesday on investor relief the second-quarter earnings beat didn't come alongside an expected acquisition by Bayer. Elanco stock had been under pressure.
The animal health company's top and bottom lines improved considerably in Q2. But its full-year guidance reflected worries about some market dynamics.
(Bloomberg) -- Elanco Animal Health Inc. narrowed its sales forecast for the year as a worsening outbreak of a deadly swine flu ravages the pork industry in Asia.The company, which was spun off last year from drugmaker Eli Lilly & Co., reined in the higher end of its revenue outlook, saying it now sees 2019 sales of $3.08 billion to $3.12 billion, compared with the $3.08 billion to $3.14 billion it had forecast in May.African swine fever has led to the slaughter of millions of animals in China as officials seek to contain the outbreak and limit the damage to the country’s pork producers. The virulent flu jumped from Africa to Europe and spread quickly in Asia. For companies like Elanco, the culling of livestock has led to lower demand for medicines and other products.“I haven’t seen something like this in my 30 years working in animal health,” said Elanco Chief Executive Officer Jeff Simmons in a telephone interview. He said that swine fever is the most significant headwind the company faces. The disease is expected to cut into Elanco’s sales by $40 million to $50 million this year, the company said.Elanco is meanwhile weighing steps to get bigger. Last week, Bloomberg reported that Elanco is attempting to reach a deal to combine with Bayer AG’s animal-health unit.Chief Financial Officer Todd Young said on a conference call that Elanco is postponing the initiation of a dividend so the company can use its cash “in the most productive way possible.”Shares of Elanco gained as much as 2.9% to $30.40 in New York on Tuesday.Street SkepticismWall Street has been skeptical about Elanco’s bid for the Bayer division. Since July 8, the day before Reuters reported that the companies were in talks, Elanco’s shares are down about 9%.While Bayer prefers a deal with Elanco, no final agreements have been reached and the talks could drag on or fall apart, people familiar with the matter told Bloomberg. Bayer may proceed with its previous plans for a broader auction process if it can’t agree on terms with Elanco by early September, one of the people said at the time.Asked repeatedly about the possible combination with Bayer on the call with investors, Simmons said Elanco is always “evaluating vectors of risk and opportunity.” He declined to comment further on the potential deal.“We believe we have the scale and the global reach that we need,” Simmons said in the telephone interview. “We’ll continue to expand and accelerate this strategy, we’ll continue to bolt-on.”Elanco’s pet businesses helped offset the sales declines in the farm unit in the most recent quarter, with disease prevention sales increasing 4% from a year earlier to $223.4 million and therapeutics sales rising 22% to $83.4 million.Second-quarter adjusted earnings were 28 cents a share, the company said in a statement, topping an average of analysts’ estimates.(Updates with comments from conference call in sixth paragraph)To contact the reporter on this story: Riley Griffin in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Elanco Animal Health Inc. surged 1.5% in morning trading Tuesday, putting them on track to snap a four-day losing streak, after the animal health company reported better-than-expected second-quarter earnings, but trimmed the top end of its full-year revenue guidance range, citing an increased headwind from African Swine Fever and the expected disruption of certain injectable cattle products. The company said earlier that it swung to net income of $35.9 million, or 10 cents a share, from a loss of $62.8 million, or 21 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS was 28 cents, above the FactSet consensus of 26 cents. Revenue rose 1% to $781.6 million, to beat the FactSet consensus of $781.0 million, as revenue for companion animal disease prevention rose 4%, companion animal therapeutics increased 22% and food animal future protein and health grew 2%, while food animal ruminants and swine fell 9%. For 2019, Elanco narrowed its adjusted EPS guidance range to $1.04 to $1.10 from $1.02 to $1.12--the FactSet consensus is $1.09--and revised its revenue outlook to $3.08 billion to $3.12 billion from $3.08 billion to $3.14 billion. The stock, which had lost 9.6% over the past four sessions, has lost 4.4% year to date, while the S&P 500 has gained 16.5%.
Elanco Animal Health (NYSE: ELAN ) reported adjusted second-quarter earnings of 28 cents per share, which beat the analyst consensus estimate of 26 cents by 7.69%. The company reported quarterly sales ...
GREENFIELD, Ind.-- -- Earnings per share improved to $0.10 , or $0.28 for the second quarter 2019 Gross margin improved to 54.5 percent of revenue , or 54.6 percent of revenue for the second quarter 2019 Total Revenue in the second quarter of 2019 increased 1 percent to $781.6 million; Total and Core Revenue grew 4 percent and 3 percent, respectively, at constant currency rates Completed acquisition ...
(Bloomberg) -- Elanco Animal Health Inc., the business Eli Lilly & Co. listed last year, is aiming to reach an agreement as soon as next week to combine with Bayer AG’s animal-health unit, people with knowledge of the matter said.The companies hope to announce a deal around the time of Elanco’s Aug. 13 earnings release, the people said, asking not to be identified as the discussions are private. Elanco, which has a market value of about $12.3 billion, plans to pay at least part of the acquisition cost using stock, the people said.Elanco lost 4.2% Wednesday to close at $31.47. Bayer rose as much as 2.6% early Thursday in Frankfurt.Bayer is selling units to sharpen its focus after the $63 billion purchase of Monsanto, which saddled it with thousands of lawsuits claiming that the Roundup weedkiller it acquired in that deal causes cancer. The German giant agreed to unload its majority stake in a chemicals venture Wednesday in a deal valued at $3.9 billion, and two Roundup trials have been delayed as pressure builds on Chief Executive Officer Werner Baumann to fashion a settlement.Bayer would get a significant minority stake in Elanco under the deal being discussed, according to another person. The companies are currently hammering out potential antitrust issues by identifying which businesses they will likely need to sell to gain regulatory approval, the person said.While Bayer prefers a deal with Elanco, no final agreements have been reached and the talks could drag on or fall apart, the people said. Bayer may proceed with its previous plans for a broader auction process if it can’t agree on terms with Elanco by early September, one person said.Serial AcquirerA deal between Elanco and Bayer would preempt a sale process that was expected to be one of Europe’s most hotly contested deal situations this year. It had attracted a flurry of initial interest from buyout firms ranging from KKR & Co. to Blackstone Group Inc. and CVC Capital Partners, which have increasingly been bidding against each other as they try to spend the record amounts of capital the industry has amassed.Bayer said in a statement that it’s on track with plans to exit the animal-health business and its primary focus is on a sale. The German company also continues to consider all value-maximizing options, it said in the statement, declining to comment further.Elanco has grown rapidly through at least 10 acquisitions since 2007, including the $5.4 billion takeover of Novartis AG’s animal-health unit. A representative for Elanco, which is based outside Indianapolis, declined to comment.Ambitious BetsThe sale of Bayer’s animal-health unit was expected to fetch as much as 8 billion euros ($9 billion), Bloomberg News has reported. The process was initially slated to kick off in the second quarter, people with knowledge of the matter said in March, though Bayer has repeatedly pushed back the start of the auction.The Bayer business offers medicine and antibiotics to farm animals and pets. The division’s best-selling product line is the Advantage flea, tick and worm treatments for small animals.Drugmakers including Lilly, Bayer and Pfizer Inc. have all offloaded their animal-health units in recent years. The businesses are often stable, profitable operations that go unrecognized inside larger pharmaceutical firms increasingly focused on ambitious research bets.(Updates with shares in third paragraph.)\--With assistance from Tim Loh and Nabila Ahmed.To contact the reporters on this story: Riley Griffin in New York at email@example.com;Dinesh Nair in London at firstname.lastname@example.org;Manuel Baigorri in Hong Kong at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, ;Drew Armstrong at email@example.com, ;Fion Li at firstname.lastname@example.org, Ben Scent, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Germany's Bayer AG and U.S. drug firm Elanco Animal Health Inc aim to reach an agreement to combine their pet-health businesses as soon as next week, Bloomberg reported https://www.bloomberg.com/news/articles/2019-08-07/elanco-bayer-said-aiming-to-reach-animal-health-deal-next-week on Wednesday, citing people with knowledge of the matter. Elanco plans to pay for at least a part of the deal with its stock and any deal would likely be announced around Elanco's earnings release next week, the report said. Reuters reported last month that Bayer had approached Elanco to discuss the possible combination that would create an industry giant.
Elanco Animal Health Incorporated (ELAN), today finalized the acquisition of Aratana Therapeutics (PETX), a pet therapeutics company focused on developing and commercializing innovative therapeutics for dogs and cats, and developer of the first-of-its-kind canine NSAID for osteoarthritis, Galliprant®. This transaction allows Elanco to capture the full value of growing product Galliprant®, in which Elanco has had the exclusive rights to develop, manufacture and commercialize since 2016. Additionally, Aratana contributes two additional products to Elanco’s portfolio: Entyce®, the only FDA-approved veterinary therapeutic to stimulate appetite in dogs, and Nocita®, a long-acting local anesthetic that provides up to 72 hours of post-operative pain relief following certain surgeries in dogs and cats.