CNBC Television
Elanco Animal Health CEO: Seeing a willingness to spend, durability even in 'consumer tested' time
11/5/2025, 7:43:58 PM
Economic Summary
- Elanco (ELAN) reported 9% organic constant-currency growth and nine consecutive quarters of growth, indicating sustained top-line momentum driven by product innovation.
- Pet owners and veterinarians are increasingly willing to spend on innovative treatments (dermatology, parasiticides, pain), supporting durable demand for products like Cordelio Quattro and Zenrelia.
- Livestock/protein markets are strong, with U.S. beef economics aided by a 50-year low in cattle numbers; Elanco cites Xperia and ruminant opportunities as meaningful growth drivers.
- The dermatology market for dogs is roughly $2 billion and growing ~13%, and Elanco is expanding Zenrelia into Europe, providing an international growth runway ahead of its investor day.
Bullish
- Durable pet-owner spending and vet willingness to pay for innovation support growth.
- High protein demand and 50-year low cattle numbers strengthen U.S. beef economics.
- Multiple blockbusters (e.g., Cordelio Quattro, Zenrelia) driving rapid product adoption.
- Diversified exposure across species, geographies, and therapeutic classes reduces concentration risk.
Bearish
- Exposure to cyclical livestock markets could cause revenue volatility.
- Consumer spending may soften in dynamic economic times, hurting pet product demand.
- Competition and regulatory risks in animal health could pressure margins.
Bullish tickers
ELAN
ELAN
Bullish
Consistent organic growth (9%), diversified portfolio across pets and protein, and rapid adoption of blockbusters like Cordelio Quattro and Zenrelia driving durable upside.
Bearish
Significant exposure to cyclical livestock markets and potential softness in consumer spending; competition and regulatory pressures could slow growth.
People mentioned
Jeff SimmonsDom