The Rising Influence of Rising Affluence

[DewDiligence]

LLY’s animal-health subsidiary, Elanco IPOs 72.3M* shares@$24.00:

https://www.elanco.com/news/press-releases/elanco-announces-pricing-of-initial-public-offering

https://finance.yahoo.com/news/lillys-elanco-animal-health-units-213854965.html

ELAN’s market cap at the IPO price is approximately $8.55B. For tax reasons, LLY is retaining slightly more than 80% of the equity—at least for the time being. ELAN accounted for ~13% of LLY’s sales in 2017.

ELAN’s closest publicly traded facsimile is ZTS, the animal-health spin-off from PFE, whose share price is up 243% from its Jan 2013 IPO (#msg-84067350).

ELAN derives about 2/3 of sales from drugs for livestock and about 1/3 from drugs for pets. All told, ELAN ranks #4 in the worldwide animal-health industry.

The stock begins trading under the symbol, ELAN tomorrow.

*Assuming exercise of underwriter’s option.